The long-expected Santa Claus rally of 2007 never arrived. That means that Q4 of 2007 marks the first time since the dotcom collapse in 2001 that global markets failed to rally in the closing quarter of the year. But global markets’ somber mood notwithstanding, two of your own Global Stock Investor picks put in stellar performances in Q4, with both Potash (POT) and Millicom International (MICC) soaring 31.4% and 40.1%, respectively. That’s exceptional outperformance in the face of significant market headwinds.

At the onset of the new year, one top trader I know sells all of his holdings, both good and bad. This is a part of mental discipline to clear his mind and start the new year with a clean slate.

I don’t suggest that you do anything that drastic. But it is worth asking the following question: if you were starting from scratch, would your new stock portfolio look like your current one? As far as your holdings in the current Global Stock Investor portfolio are concerned, I can answer an emphatic “yes.” Your current set of picks is well-positioned for strong gains in the year ahead.

PORTFOLIO UPDATE

Anglo American (AAUK) has attracted a growing number of value players in the global investment community. My sources tell me that Fidelity’s largest mutual funds have been loading up on the stock. Always a subject of potential merger and acquisition rumors, Anglo American has the potential to jump very quickly on any news flow. The stock’s recent oversold position makes it a great time to BUY.

ABB Ltd. (ABB) was the subject of a long profile in Investor’s Business Daily last week. ABB expects positive market conditions to continue through the first half of 2008 and to remain unaffected by the current slowdown in the U.S. construction industry. Analysts estimate that fourth-quarter EPS will climb 90% to 40 cents as revenue rises 18% to $8.49 billion. That’s terrific growth on all counts. ABB is a BUY.

Barrick Gold (ABX) is poised for a banner year. Continued weakness in the dollar and robust investment demand mean that prices for gold could surge to above $1,000 an ounce in the next 12 months. This is a megatrend from which Barrick is set to benefit handsomely. The stock remains a BUY.

America Movil (AMX) was one of my top picks for 2007, and was highlighted as such on AOL Finance as one of the top 20 picks among investment advisors surveyed by AOL. Despite succumbing to the markets’ overall choppiness during the past few months, America Movil remains a BUY.

Coca-Cola Hellenic Bottling (CCH) continues to hit record highs, despite market jitters. I’m confident this “one decision stock” will deliver consistent profits during the next few years. Coca-Cola Hellenic is a BUY.

iShares MSCI Brazil Index ETF (EWZ) leapt 75% in 2007, with Brazil’s economy growing 4.4% last year, a pace it is expected to match this year. Unlike other highflying, emerging market ETFs, Brazil managed to keep most of its advance this year, despite market volatility. With the Brazilian ETF only 7% from its high, it is a good time to BUY.

CurrencyShares Japanese Yen Trust (FXY) may be unexciting, but steady. During the course of 2007, the yen was the only major currency in the world that gained against an almost universally weak U.S. dollar. It remains a defensive BUY.

ICICI Bank (IBN) fell as the assassination of Benazir Bhutto, former prime minister and the opposition leader of Pakistan, sent shares of companies from neighboring India skidding on concerns about political security in the region. ICICI Bank has since bounced back to pre-assassination levels and is up more than 45% since our initial recommendation in our inaugural issue of Global Stock Investor last February. The stock is a BUY.

Millicom International (MICC) advanced 40.1% during the fourth quarter — making it one of the top performers among the NASDAQ 100. With the stock still off its record highs, it remains a BUY.

ArcelorMittal (MT) announced the acquisition of Cinter SA, a stainless steel tube producer in Uruguay, and Eisen Wagner GmbH, an Austrian steel distribution company. The acquisition spree of ArcelorMittal is relentless. Don’t bet against Lakshmi Mittal, ArcelorMittal’s CEO and the world’s fourth-richest man. The stock is a BUY.

Potash (POT) is slowly becoming a media darling as it continues to make record highs. With the stock up 31.32% since our recommendation just over two months ago, your bet on the soft commodities boom remains a BUY.

Tesco (TSCDY) is slowly raising its profile in the U.S. market, and it was recently featured in a front page story in the Dec. 24 edition of The Wall Street Journal. 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!

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.  

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