Well, if you wanted to know the world’s reaction to the Republican victories in the U.S. elections, you need not look further than Asian markets overnight. Markets there rallied sharply on the news of the Republicans’ takeover of the House of Representatives.
The European press already has the knives out for Obama, who London’s Financial Times this morning called “a shooting star who briefly lit the sky before crashing.”
The big news in your Global Stock Investor portfolio was from JinkoSolar Holding Co., Ltd. (JKS), which soared 26.2% this past week, as it blew past already optimistic earnings estimates.
Global markets are attracting ever more attention, as even permabears like Nouriel Roubini are predicting that the liquidity-driven party in global markets could go on into next year. Former Morgan Stanley chief strategist Barton Biggs was even more optimistic, saying that emerging markets could double from their current levels. Given current valuations and growth prospects in emerging markets, that forecast does not sound as crazy as it first may seem.
In any case, it was yet another week of record or 52-week highs for your Global Stock Investor portfolio. These include JinkoSolar Holding Co., Ltd. (JKS), the iShares MSCI Singapore Index (EWS), the CurrencyShares Japanese Yen Trust (FXY), the iShares MSCI Malaysia Index (EWM), the Claymore/BNY Mellon Frontier Markets (FRN) and the iShares MSCI Taiwan Index (EWT).
I continue to expect your Global Stock Investor portfolio to perform strongly for the rest of the year, as the traditional Q4 rally advances.
Market Vectors Brazil Small-Cap ETF (BRF) rose 4.2% this past week, and now is trading just under its yearly highs. With Brazil electing its first female president, Dilma Rousseff, over the weekend, BRF remains a BUY.
The WisdomTree Dreyfus Chinese Yuan Fund (CYB) ended the week slightly higher. As global companies and investors increase their holdings of the yuan, pressure for the appreciation of the currency will only increase. CYB is a BUY.
iShares MSCI Malaysia Index (EWM) rose 1.36% this past week, closing yesterday at a yearly high. U.S. Secretary of State Hillary Rodham Clinton just ended her three-day official visit to Malaysia, singing the praises of Malaysia’s economy dynamism. EWM remains a BUY.
iShares MSCI Singapore Index (EWS) hit another high for the year of $13.95, before ending the week up 1.45%. Authorities announced a surprise move to tighten monetary policy, pushing the local dollar to new highs, as the economy headed for 13% to 15% expansion this year. EWS is a BUY.
iShares MSCI Taiwan Index (EWT) hit a yearly high of $14.08 this past week, ending the week 1.88% higher. Credit Suisse Group yesterday upgraded Taiwan’s equity market to “overweight” from “underweight,” after major technology firms posted strong earnings. EWT is a BUY.
iShares MSCI South Korea Index (EWY) rose back up to a yearly high of $56.00. Both Deutsche Bank AG and Citigroup Inc. predict that South Korea’s stocks will extend a rally into next year, driven by attractive valuations and earnings growth. EWY remains a BUY.
Freeport-McMoRan Copper & Gold, Inc. (FCX) fell back slightly this week, as Fitch Ratings upgraded the company’s debt, citing debt reduction, the elimination of preferred shares and expectations for continued cash generation. FCX is a BUY.
Claymore/BNY Mellon Frontier Markets (FRN) hit a record high of $24.21, ending the week up 1.9%. With its largest holdings in Chile (28.2%), Colombia (14.5%), Egypt (13.4%), Argentina (7.1%) and Peru (5.7%), FRN is a BUY.
CurrencyShares Japanese Yen Trust (FXY) hit a record high of $122.74 before ending the week 1% higher. This currency bet remains a defensive HOLD.
Global X FTSE Nordic 30 ETF (GXF) closed the week at $19.60, ending the week up 1.76%. Nearly half of all Danes, Finns, Norwegians, Swedes and Icelanders would like their countries to unite in a federal state, according to a recent poll. Talk about consensus. GXF remains a BUY.
Market Vectors Indonesia ETF (IDX) fell back slightly this week. President Obama is sure to receive a warm welcome when he visits Indonesia in a few days. Too bad they can’t vote. IDX remains a BUY.
JinkoSolar Holding Co., Ltd. (JKS) ended the week up 26.2%, after the company blew away earnings expectations. The company’s net income was a record $38.8 million, an increase of 43.6% sequentially and 1,766.9% year-over-year. JKS is a BUY.
Market Vectors Russia ETF (RSX) was flat this week, as it is underperforming strong Q4 expectations. With Q4 traditionally the strongest for Russia, RSX remains a BUY.
iShares MSCI Turkey Invest Mkt Index (TUR) fell back slightly this week. With an upgrade to investment status in the cards, Turkey is like Brazil was 10 years ago. TUR is a BUY.
Vale S.A. (VALE) rose slightly this past week. The company announced that its capital investment budget for fiscal 2011 would more than double to $24 billion. Vale remains a BUY.
P.S. The constantly changing market environment continues to present investors with some of the most challenging times in recent history. Mark your calendar for Wednesday, November 10, 2010, at 2 p.m. EDT for my LIVE teleconference when I will discuss “How to Maximize Your 4th Quarter Profits While U.S. Investors Suffer Through Lame Duck Returns.” This is your chance to hear my predictions and learn how to profit through year’s end and into 2011. This special, FREE event is for subscribers only. I hope you will join your fellow subscribers and me on this call. Expect to receive a phone call from me at roughly 2 p.m. on Wednesday, Nov. 10, and I encourage you to pick up the phone and join the call. To update your contact information, click here.