Nicholas Vardy

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

Both Wall Street and global stocks fell this past week as a seemingly relentless rise in bond yields unnerved stock investors around the globe. The benchmark 10-year Treasury note’s yield passing 5% exacerbated jitters about mortgage rates rising, and hitting an already sluggish housing market.

After their relentless climb over the last two months, global equity markets have been due for some sort of a correction in any case. But sentiment-driven, short-term swings such as this past week’s sharp moves in bonds tend to fade as quickly as they come.

I found it particularly encouraging that two of our most volatile plays, China’s Home Inns & Hotels Management (HMIN) and India’s ICICI Bank (IBN), held steady over the past week. That indicates that investors aren’t heading for the exits just quite yet.

From the standpoint of our Global Stock Investor portfolio, I would look at the recent sell-offs as an opportunity to enter or add to our positions.


This week’s sell-off in mining group Anglo-American (AAUK) offers a perfect opportunity to get into our #1 play on the global commodities supercycle. I recently spoke with the head of marketing at De Beers — the world’s #1 producer of diamonds — in which Anglo-American has a 40% stake. De Beers is opening new stores all over Asia, the United States, and Moscow, as part of a large retail push. The diamonds are flying off the shelves. The stock remains a STRONG BUY.

Home Inns (HMIN) was the big surprise of the week. Bucking the weak global trend, our Chinese hotel play was actually up 3.55% since its close last Wednesday. Nevertheless, with sentiment turning against China, Home Inns remains a HOLD for now.

ICICI (IBN) expects to sell shares in India and the United States next week to raise up to $5 billion to fund its expansion. ICICI said it expects to raise 87.5 billion rupees ($2.1 billion) of that amount in India, and the balance through a sale of ADRs to American investors. ICICI bank also announced it was selling 5.9% of ICICI Financial Services Ltd., which holds stakes in insurance and mutual fund ventures, for 26.50 billion rupees ($650 million). All this is bullish for the stock and "India’s Citibank" remains a BUY.

Exclusive  Gold Mining Stocks Breakout From Long Downtrend

U.K.-based global retailer Tesco (TSCDY.PK) announced this week that it is set to open three stores a week in the United States every week between November and the end of February, after debuting in four cities — Los Angeles, Las Vegas, Phoenix and San Diego — in November. The company has over 100 stores in the pipeline that include 30 in Phoenix and 14 in Las Vegas. Tesco is also set to announce Q1 results June 19, so watch for more on that next week. This Warren Buffett-favorite remains a BUY.

Swedish ETF (EWD) sold off over this past week. But not to worry. Sweden is a stable, long-term story that will continue to do well. Our Swedish ETF includes some of the top global companies around. The #1 company in the Swedish ETF is telecom equipment maker Ericsson, which accounts for 21% of the ETF. Ericsson is a company with global reach, and just over 40% of all telephone calls worldwide go through an Ericsson system. The ETF also boasts a 25% return on equity and a much stronger balance sheet than its peers. Other top companies in the Swedish ETF are Sandvik, Volvo, and Atlas Copco. With a line-up like this, Sweden remains a BUY.

With the drop in share prices, our two telecom plays, Latin American cell phone giant America Movil (AMX) and Luxembourg-based Millicom International Cellular (MICC) went "on sale" this week. So if you are a new subscriber, or have some extra cash to put to work, consider these two stocks — my two favorite plays on the global cell phone megatrend. Both stocks are STRONG BUYs.

Exclusive  Six Best Home Building Stocks to Buy Amid Ongoing Economic Recovery

P.S. Join me at the 29th Annual Money Show in San Francisco
I personally invite you to sign up for this year’s Money Show, July 26-28, 2007, at the San Francisco Marriott located in the heart of the city’s picturesque downtown. Join over 50 of the country’s premier policy analysts, advisors, and money managers who will share their best strategies for taking advantage of economic, political, and market opportunities to grow your investment assets. You can choose from over 150 educational workshops and 15 panel presentations. The show also features a state-of-the-art exhibit hall with more than 125 of the finest financial companies in the country displaying their cutting edge products and services. For complete details or to register for free admission, call 800.970.4355 (be sure to mention priority code #008564), or visit: The Money Show San Francisco’s Home Page to register today!

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

previous article

For an academic economist, Yale economist Robert Shiller has developed a somewhat surprising reputation as an investment guru. His bestseller Irrational Exuberance hit the bookstores right before the 2000 stock-market slide.


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

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

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

  • Cash Machine
  • Premium Income (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Profits Alert
  • Hi-Tech Trader

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

  • Successful Investing
  • Intelligence Report
  • Bullseye Stock Trader

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

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

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

  • GameChangers
  • Value Authority
  • High Octane Trader
  • Triple-Digit Trader
  • 2-Day Trader
  • IPO Edge
  • Inner Circle

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Technical Traders Alert
  • Success Trading Group

Used by financial advisors and individual investors all over the world, 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.

  • Dividend Investor