GLOBAL STOCK INVESTOR HOTLINE UPDATE 31

Nicholas Vardy

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

It was another strong week for most of our Global Stock Investor portfolio holdings — with Anglo American (AAUK), ArcelorMittal (MT), America Movil (AMX), the iShares MSCI Brazil Index (EWZ), ICICI Bank (IBN) and Tesco (TSCDY) all hitting record highs.

While our Global Stock Investor portfolio has racked up big profits, this has not been the case for all equity investors across the board. Since the market bottom on Aug. 15 to the closing prices on Thursday, Sept. 27, there has been a huge disparity in returns based on where you’ve invested in the world. Over this 30-day period, emerging markets have put up tremendous returns on a relative and an absolute basis. The S&P 500 was up 8.5% in the last 30 days or so from the August closing low. In contrast, the iShares MSCI Emerging Markets Index has surged almost 25%.

That said, I expect some type of pullback in the next week or so, as the market consolidates its record gains. But look for the gains to continue as we benefit from the traditional Q4 surge.

PORTFOLIO UPDATE

Anglo American (AAUK) hit yet another record high on Monday. The world’s second-largest gold mine owner is reducing its stake in AngloGold by more than half to 17.3%, down from 41.8%, as it continues to streamline its holdings to focus on core businesses. The company announced that it plans to raise $2.9 billion from the sale. Our #1 play on the global commodities boom is a BUY.

ABB Ltd. (ABB) breached the $27.00 level for the first time ever this week. There are rumors that it may be expanding its operations in North America by acquiring Belden Inc., North America’s second-largest maker of electronic cable. ABB remains a BUY.

Exclusive  Seeking High-Yield Income from the Business of Lending

America Movil (AMX) hit a record of $66.42. Look for an extraordinary dividend of up to $5.00 per share this quarter. AMX is a BUY.

iShares MSCI Swedish Index ETF (EWD) is one of our few holdings that has not fully recovered from the summer swoon. But this safe and steady play benefits from both market reforms and a depreciating dollar. It remains a BUY.

iShares MSCI Brazil Index ETF (EWZ) broke out to new 52-week highs and it is up 10.35% since we first recommended it only two weeks ago in this month’s Global Stock Investor. Investors are buying this one on the dips as EWZ topped the list on Friday among stocks that fell in price but had the largest inflow of money. The ETF is a strong momentum play and a BUY.

CurrencyShares Japanese Yen Trust (FXY) is our defensive, cash-style holding that acts as a hedge against market declines. It is a defensive BUY.

ICICI Bank (IBN) is relentless, soaring another 7.93% to record highs, as the Mumbai Stock Exchange breaks record highs almost every day. ICICI Bank also announced that it is planning to launch a fund of funds that initially will target private equity funds that focus on India. This so-called "India Citibank" is a BUY.

Millicom International (MICC) is slowly working itself back toward its summertime highs, and it is up 11.41% during the past two weeks. Millicom Sierra Leone Limited announced a 20% reduction in its international tariffs for its existing and potential customers. This reduction makes Millicom’s Tigo the most affordable player in Sierra Leone’s mobile phone industry. With earnings coming up in about two weeks, Millicom is a BUY.

Exclusive  A Bet on Latin America's Cell Phone Giant

ArcelorMittal (MT) hit $80 on Monday, before falling back slightly yesterday. The world’s largest steel company is consolidating its hold over the Latin American market, after announcing that it would complete its takeover of Argentina’s Acindar. ArcelorMittal announced that it would acquire the 34.7% stake of the Argentine steel maker that it does not already hold for $542 million. The stock is a BUY.

Tesco (TSCDY) announced Q2 earnings this week, as the stock hit a record high of $28.55 yesterday. Sales in the first half increased by 9.2% and underlying profit before tax has grown by 14.3%. Underlying diluted EPS was up 17.2%, benefiting from strong property profits, a lower tax rate and the effect of the share buyback. Sales in Tesco’s international division have increased strongly to rise 22% in the first half — aided by a first-time contribution from China. The stock is a BUY.

P.S. Interested in discovering the next sector set to blast off? How about learning the specific shares the experts see as the most profitable in 2008? Attend The World Money Show London and hear from 50+ investment experts as they reveal their profitable strategies and provide their specific stock picks. The World Money Show London is being held Nov. 30 – Dec. 1 at The Queen Elizabeth II Conference Centre. The event will feature 14 panel presentations and leading investment product and service providers. As a bonus, I will be moderating a panel discussion about investment opportunities in India. Call today to register for The World Money Show London at 00 800 1414 8888 (free international phone number) between 10:30 a.m. – 10:30 p.m. (EXCEPT from Oct. 28 – Nov. 4 when the hours will be 9:30 a.m. – 9:30 p.m. because of daylight saving time). Don’t forget to mention priority code #009516. Or visit us on the web.

Exclusive  Booking 63.15% Gains in 5 Days -- and Doubling down on Mortgage REITs

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

Today marks the first day of what traditionally has been the strongest quarter in global markets. Stock markets have gone up during the fourth quarter for each of the last nine years, and 24 out of the last 27 Q4s. This remarkable run, combined with the recent Fed rate cuts, makes this the time of the year to really step on the gas. And there are few better ways to play the liquidity and momentum of global markets than with this week's Global Bull Market Alert pick, the iShares MSCI Hong Kong In

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