GLOBAL STOCK INVESTOR HOTLINE UPDATE 41

Nicholas Vardy

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

The sharp drop in the markets after the Fed’s rate cuts yesterday distorted what was fundamentally a strong week for our Global Stock Investor picks.

Investors sold off the market because they were unhappy that the Federal Reserve did not lower rates more aggressively. This overreaction ignores the reality that the Fed’s interest rate cuts add to global liquidity — and strengthen the investment case for all of our global megatrends.

Prior to yesterday’s sell off, most of our holdings were back up to near record highs after several of our Global Stock Investor holdings — including Canada’s Potash (POT) and the Brazilian ETF, iShares MSCI Brazil Index (EWZ) — hit record highs this past week. It is best to look at the recent sell off as an opportunity to add to your positions.

PORTFOLIO UPDATE

Anglo American (AAUK)‘s CEO Cynthia Carroll met last week with her counterpart at Xstrata, the world’s sixth-biggest mining company. That started rumors that Anglo American could eventually make a bid for Xstrata. According to analysts, Anglo American and Xstrata would make a good combination. Anglo American could benefit from Xstrata’s many projects, and it would have synergies with Anglo American’s coal business in South Africa and Australia. Stay tuned as our play on the commodities supercycle remains a BUY.

ABB Ltd. (ABB) won an order worth more than $86 million from Eni SpA to design and construct a new oil processing plant in an onshore oil field in Italy. The plant is scheduled for completion in 2010 and will process almost 7,000 barrels of crude oil and 6.7 million cubic feet of gas per day. With global infrastructure projects roaring ahead, ABB is a BUY.

Exclusive  Booking Yet another Pair of 140%-Plus Options Gains

Barrick Gold (ABX) continues to bounce around with the gold price. Think long term and ignore the noise. The stock remains a BUY.

America Movil (AMX) management said the company will bid for more Brazilian high-speed wireless licenses in a government auction beginning this week. Investment bank HSBC also initiated coverage of America Movil and gave the stock an “overweight” rating. The sharp drop in the stock’s price yesterday is a terrific entry point. America Movil is a BUY.

iShares MSCI Sweden Index (EWD) continues to lag. It stays a HOLD.

iShares MSCI Brazil Index (EWZ) hit record highs last Friday as the Brazilian market surpassed its previous record that was reached on Oct. 31 before selling off sharply yesterday. It remains a good time to BUY this Brazilian ETF.

CurrencyShares Japanese Yen Trust (FXY) crept back above $90 after the sell off in the markets yesterday. Our bet on the unwinding of the carry trade remains a defensive BUY.

ICICI Bank (IBN) jumped this week as the Indian stock market breached the psychologically important 20,000 mark. India’s economy expanded 8.9% from July to September, compared with the same period a year earlier, according to data released last week by the Central Statistical Organization. “India’s Citibank” is one of my favorite long-term picks and is a BUY.

Millicom International (MICC) was featured in a cover story on African cell phone markets in Investor’s Business Daily this week. Based on the acquisition price paid by France Telecom for a Kenyan cell phone company, Millicom could be worth up to $38 billion. Today, Millicom’s market cap is closer to $12 billion. It’s easy to see why Millicom is a BUY.

Exclusive  Budget Tensions Lower Stocks

ArcelorMittal (MT) continues its relentless expansion. It recently announced plans to build a $380 million beam mill in Canada. The company also acquired a Buenos Aires producer of flat stainless-steel products. ArcelorMittal is a BUY.

Potash (POT) dropped 3.1% from Monday’s record close. Just prior to the Fed announcement, Potash rose as much as 2.6%. This is a volatile stock but Potash remains a BUY.

Tesco (TSCDY) led market-share gains among British grocery chains in the past three months. Tesco’s market share in the United Kingdom rose 0.2 percentage points to 31.7% in the 12 weeks ended Dec. 2. Tesco is a BUY.

P.S. Join me at The World Money Show in Orlando, The Gaylord Palms Resort, February 6-9, 2008, for the opportunity to meet and hear 120+ Wall Street experts who will tell you what to buy and what to sell in 2008! Invest four days in planning and refining your 2008 portfolio by attending the 320+ workshops and panel presentations. Learn about profit-making strategies during a rollercoaster market, safe-harbor stocks, and what ETFs to buy in a market meltdown from hundreds of insightful and profitable presentations when you attend FREE! Call 800/970-4355 and mention priority code #009613 or, Register online 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


img
previous article

This week revisits a theme from late October -- one we were stopped out of in the recent market turmoil -- but one that I believe will perform strongly during the next few weeks.

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