Even as U.S markets are hesitating to break out on the upside, your Global Stock Investor picks continue to perform very strongly.
The top performer for the week was Brazil’s Vale S.A. (VALE), which soared 8.2% this past week on news that it plans to buy back up to 5% of its shares, valued at $2 billion. It is back to a BUY.
Nine of your positions are showing double-digit percentage gains. The Market Vectors Indonesia ETF (IDX), the Market Vectors Brazil Small-Cap ETF (BRF) and Freeport-McMoRan Copper & Gold, Inc. (FCX) are up by more than 20%.
Many of your positions hit records or 52-week highs. These include the Market Vectors Brazil Small-Cap ETF (BRF), the iShares MSCI Singapore Index (EWS), the iShares MSCI Taiwan Index (EWT), the Claymore/BNY Mellon Frontier Markets (FRN), the Market Vectors Indonesia ETF (IDX), the iShares MSCI Turkey Invest Mkt Index (TUR) and the Global X FTSE Nordic 30 ETF (GXF).
Although I continue to believe that global markets are due for a pullback, the reasons to be bullish about global stocks between now and year-end are growing. First, developing countries are revising projected economic growth rates across the board, with Singapore expected to clock an almost 15% growth rate for 2010. Second, after being locked in a trading range for much of the year, many markets have broken out to the upside. Third, Q4 tends to be the strongest quarter for global stocks. Finally, the announcement by the U.S. Fed that it is willing to inject yet even more liquidity in the global financial system only adds fuel to the global-stock fire.
The bottom line? This is the time of the year to step on the gas, and to ride out any short-term pullbacks in the market.
Portfolio Update
Market Vectors Brazil Small-Cap ETF (BRF) hit a record $55.87, before pulling back and ending the week 1.17% higher. Your bet on exploding Brazilian domestic consumption remains a BUY.
The WisdomTree Dreyfus Chinese Yuan Fund (CYB) rose to a new high of 6.6235 against the U.S. dollar as the People’s Bank of China set the yuan’s central parity rate at a record high of 6.6936. CYB is back to a BUY.
iShares MSCI Malaysia Index (EWM) ended the week flat. Malaysia’s finance minister announced that economic growth may exceed 7% this year as global economic conditions are not as bad as once feared. EWM remains a BUY.
iShares MSCI Singapore Index (EWS) rose 1.38% this week to hit a high for the year of $13.21. Singapore’s economy will grow at a record 14.9% pace this year, up from an estimated 9% published just three months ago. EWS is a BUY.
iShares MSCI Taiwan Index (EWT) hit a yearly high of $13.40 this past week, rising 1.13% on the week. The Economist Intelligence Unit expects Taiwan’s gross domestic product to grow by 9.2% in 2010, the fastest rate in 21 years. EWT now is a BUY.
iShares MSCI South Korea Index (EWY) closed the week at $52.89, matching its high in May. With South Korea’s economy firmly set on a growth path, EWY remains a BUY.
Freeport-McMoRan Copper & Gold, Inc. (FCX) hit a high of $87.03 last week, ending the week up 4.87%. Pushed higher by rallies in both copper and gold, don’t chase this huge performer at this point. FCX remains a HOLD.
Claymore/BNY Mellon Frontier Markets (FRN) rose 2.46%, after hitting a record high of $22.89. With Chile, Colombia and Poland among the planet’s top-performing stock markets, FRN remains a BUY.
CurrencyShares Japanese Yen Trust (FXY) resumed its bullish ways, rising 1.38%. This will perform well when the market swoons. FXY is a defensive HOLD.
Global X FTSE Nordic 30 ETF (GXF) closed at a record high of $18.71 yesterday. With the Swedish market hitting a 52-week high, GXF remains a BUY.
Market Vectors Indonesia ETF (IDX) hit another record of $86.30 yesterday, ending the week 3.17% higher. Investors bought a net 4.9 trillion rupiah ($547 million) of Indonesian shares just this month, almost a third of the 15.7 trillion rupiah purchased this year. Indonesia remains a BUY.
Market Vectors Russia ETF (RSX) closed at $32.11 last week, lagging most other global markets. With this market a historically big Q4 performer, Russia remains a BUY.
iShares MSCI Turkey Invest Mkt Index (TUR) hit a yearly high of $69.85, ending the week 4.44% higher. Economy Minister and Deputy Prime Minister Ali Babacan estimated that the Turkish economy would grow at the highest rate among European countries by the end of this year. With a 10%+ growth rate, that is a huge understatement. Turkey remains a BUY.
Vale S.A. (VALE) soared 8.2% this past week on news that the world’s largest provider of iron ore plans to buy back up to 5% of its shares, valued at $2 billion. Vale also announced plans to list shares on the Hong Kong Stock Exchange. Vale is now a BUY.
P.S. Today, at 1:00 p.m., EDT, you’re invited to join Dr. Mark Skousen, Doug Fabian and me for a FREE panel discussion, teleconference event entitled, “The Top 10 Homerun Stocks to Buy Now.” During the call, in addition to hearing what we consider your best bets for profits in today’s turbulent market, you’ll also have the opportunity to ask us a question. To ensure that we have the most up-to-date phone number for you, please click here and enter the information requested. I hope you can make the call.
P.P.S. If you want to keep up with my latest insights on developments in fast-paced global markets, you can now follow me on Twitter on @NickVardy or on my new blog, NickVardy.com.
