Global Stock Investor Hotline 47

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

Global stock markets continued to recover over the past week, with markets up across the board for the past three trading days. This was reflected in your Global Stock Investor portfolio where all but two of your stock-related positions rose at least 4%.

Your best-performing position for the week was global steel giant Arcelor Mittal (MT), which ended the week 7% higher. Several other positions in your Global Stock Investor portfolio also hit highs for the year, including the Market Vectors Russia ETF (RSX), the iShares MSCI South Korea Index Fund (EWY), Brazil’s VALE S.A. (VALE), the iShares MSCI Turkey Invest Mkt Index (TUR) and Market Vectors Indonesia ETF (IDX). Copper play Freeport-McMoRan Copper & Gold Inc. (FCX) also performed strongly. Note that I have further tightened the stops on many of these positions.

The rally since the market bottomed in early February has been extraordinarily steady, and virtually without any pullback. As impressive as the rally has been, I am struck by two things.

First, I am amazed how quickly the sharp correction in January and early February — more than 15% in emerging market stocks — has faded from the memory of investors. This, in my mind, fits the economist J.K. Galbraith’s observation that “the financial memory is very short.” Greed has replaced fear with astonishing quickness.

Second, virtually all markets across the globe are now firmly in overbought territory. That doesn’t mean that they can’t continue to power ahead in the coming weeks. But it does mean that they, at some point, are due for a pullback. I’m not going to recommend that you close any positions based purely on this basis. But you should prepare yourself for a correction at some point and, as always, stick to your stops.

Exclusive  (Possibly) The World's Most Profitable Media Company in the World's Biggest Market

Portfolio Update

Market Vectors Brazil Small-Cap ETF (BRF) rose this last week, as both the Brazilian stock market and the Brazilian currency, the real, firmed against the U.S. dollar. Probably the most oversold among all global markets, Brazil — and BRF — remains a BUY.

The WisdomTree Dreyfus Chinese Yuan Fund (CYB) rose slightly this past week. The London Financial Times reported that Ba Shusong, a government economist, told reporters at a Chinese Foreign Ministry gathering in Beijing today that China may allow the yuan to float higher. CYB remains a HOLD.

UltraShort Euro ProShares (EUO) ended the week a hair higher. With the crisis in Greece yet to abate fully, and economic recovery dragging compared with the United States and Asia, your bet against the euro remains a BUY.

iShares MSCI South Korea Index Fund (EWY) jumped 4.4% this past week, as South Korea hit new highs for the year. Samsung, a large component of EWY, announced Tuesday that it expected to post a record 4.3-trillion-won operating profit for the January-to-March quarter, thanks primarily to a boost in computer chip prices as demand outstripped supply. That’s a seven-fold increase from the same period last year. EWY remains a BUY. Raise your stop to $46.25.

Freeport-McMoRan Copper & Gold Inc. (FCX) rose another 4.38% this past week, and is flirting with yearly highs. With “Dr. Copper” breaking out toward the upside to new highs, FCX remains a BUY. Raise your stop to $76.00.

Market Vectors Indonesia ETF (IDX) hit yet another record high of $74.22 yesterday, ending the week 4.76% higher. With Indonesia continuing to cement its position as the “next BRIC,” IDX remains a BUY. Raise your stop to $67.50.

Exclusive  Book 52.17% Gains in Solar Calls

Arcelor Mittal (MT) rose just over 7% this past week. With global steel prices set to rise by up to a third after miners and steelmakers recently agreed to a ground-breaking change in the iron ore price system, this cyclical play on global growth remains a BUY. Raise your stop to $40.00.

Market Vectors Russia ETF (RSX) rose by 4.6%, hitting yet another yearly high of $35.71 yesterday. As the Russian stock exchange remains a leveraged play on rising oil prices, RSX remains a BUY. Raise your stop to $32.25.

iShares MSCI Turkey Invest Mkt Index (TUR) rose 4.98% this week, hitting a yearly high of $60.70 on Monday. Goldman Sachs recently projected that Turkey’s $620-billion economy could move ahead of Germany’s to become the third-biggest in Europe by 2050, behind Russia and the United Kingdom. TUR remains a BUY. Raise your stop to $52.50.

VALE S.A. (VALE) rose a relatively subdued 2.16% this past week, hitting yet another new high for the year. In a sign of the growing shift toward Asia, this Brazilian mining giant is now considering a listing in Hong Kong or Shanghai. VALE remains a BUY.

P.S. Don’t miss out on the 22nd annual MoneyShow Las Vegas, May 10-13 2010 at Caesars Palace. This event will be your one-stop resource for the comprehensive education, efficient research, and valuable advice you need to make smart investment decisions in 2010 and beyond. Join me there and hear leading experts reveal where they see growth opportunities in stocks, bonds, ETFs, commodities, and options. Also learn about which overseas markets may outperform in the near term. Visit The MoneyShow Las Vegas to register FREE online, or call 800/970-4355 and mention priority code 017443 today!

Exclusive  Betting on a Bounce in Gentherm (THRM)

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE


img
previous article

Germany doesn't get a lot of respect in the global investment world. After all, when is the last time you received a solicitation for a newsletter focused on profiting from the "German miracle?" Yet, as the world's fourth-largest economy and, up until recently, the world's no. 1 exporter, high-end German manufacturing expertise is what keeps much of the world's factories going.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike Turner’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE