Global Stock Investor Hotline 7

Nicholas Vardy

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

Yesterday, I saw hedge fund superstar George Soros speak at the London School of Economics (LSE). Soros, a graduate of the LSE, is in London to get his message out to the leaders meeting at the G-20 conference this week, and to push for them to increase the role of the International Monetary Fund (IMF) in bailing out smaller economies.

In his very first sentence, Soros said global financial markets “were on a knife’s edge” — using the very same words that I had used in describing markets in last week’s Global Guru. Soros said the center of the global financial system had “settled” since going into “cardiac arrest” after the collapse of Lehman Brothers. The real danger to the global economy now is from the “periphery” — in particular, smaller eurozone countries like Ireland that cannot print their own money, as well as overly indebted countries in Eastern Europe.

When asked about his favorite investments for the rest of 2009, he said, “I know exactly what markets are going to do in 2009. I am just not at liberty to disclose it.” Although Soros did not answer questions about the markets directly, his speech led me to believe that his own portfolio likely includes at least two positions that overlap with your Global Stock Investor portfolio.

First, because Soros believes that governments have to first “reflate” their way out of the collapse of the credit “super-bubble,” I believe that Soros is short U.S. Treasuries — as you are through the UltraShort Lehman 20+ Treasury ProShares ETF (TBT). Second, because he sees the greatest pressures on the global economy coming from the peripheral countries, I believe it’s highly likely that he is also short the euro — as you are through the UltraShort Euro ProShares (EUO).

Exclusive  Global Stock Investor Hotline 58

Portfolio Update

The Chemical & Mining Co. of Chile Inc. (SQM) dragged this week, as it failed to keep up with the rest of the market. Nevertheless, this play on both agriculture and lithium remains a BUY.

The UltraShort Lehman 20+ Treasury ProShares ETF (TBT) fell this week, and now is as technically oversold as it has been since the beginning of January. But with the demand for Treasuries going through the roof and inflation on the horizon, TBT remains a BUY.

The UltraShort Euro ProShares (EUO) rebounded since you re-entered the position last week. With European economies weak and small eurozone countries like Ireland and Austria under pressure, EUO is a BUY.

The WisdomTree Dreyfus Chinese Yuan Fund (CYB) jumped sharply yesterday to a record high of $25.60, as the Chinese currency begins to acquire a higher profile on the world stage. CYB remains a BUY.

P.S. Gain the knowledge and insights you need to make smart investment decisions at the most important investor gathering in 2009. Join me for this year’s Money Show Las Vegas, May 11-14, 2009 at the Mandalay Bay Resort and learn how the experts are finding profitable opportunities during the market crisis and how to position your portfolio for safety and growth. To register FREE, call 800/970-4355 and mention priority code 012653 or register online!

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

Until Friday's drop, March was shaping up to be the best month for U.S. stocks since 1974. But with both Asian and European markets down sharply in this morning's trading, markets are set to take a breather for the next few days. And although there has been a trickle of good news on the U.S. economy, there are plenty of reasons to think the markets will take a pause from their recent upswing.

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