GLOBAL STOCK INVESTOR HOTLINE UPDATE 85

Nicholas Vardy

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

While global stock markets continue to seek direction, your Global Stock Investor positions continue to thrive. Two of your Global Stock Investor holdings hit record highs this week. The Direxion Funds Dollar Bull 2.5x Fund (DXDBX) soared 10.15% in the very first week in the portfolio to $41.76. Tighten your stop to $37.50.

The Market Vectors Double Short Euro ETN (DRR) jumped 9.7% to close at a record high of $55.46. DRR is now up 16.15% since we re-entered the position on Oct. 1. During early deals on this morning, the U.S. dollar rose beyond the 1.28 level against the euro for the first time since November 2006 as the potential impact of a recession is expected to be worse in Europe than in the United States.

The chart below, comparing the performance of DRR to the euro, illustrates the benefit you are getting from DRR’s leveraged bet on the decline of the euro. As the euro drops, DRR gains 2x as much. Tighten your stop on DRR to $44.50.

The CurrencyShares Japanese Yen Trust (FXY) was mostly flat this week, and is once again flirting with the $100 mark. This morning, the Japanese yen rose to new multi-year highs against the euro, the British pound and the Swiss franc as a fall in stock prices prompted investors to sell higher-yielding assets funded in Japan. The yen also climbed to a six-day high against the U.S. dollar.

The WisdomTree Dreyfus Chinese Yuan Fund (CYB) was also steady this week. Thankfully, the fund didn’t exhibit any out of character swings that were evident in its price movement two weeks ago. The yuan’s daily trading band is currently set at 0.5%.

Exclusive  Warren Buffett Admits Defeat But Still Outperforms!

Looking ahead, I continue to expect your currency positions to strengthen in the coming week, particularly as European currencies continue to crumble. The British pound sterling is proving to be particularly vulnerable — which will directly benefit your position in the Direxion Funds Dollar Bull 2.5x Fund (DXDBX).

The British currency hit a five-year low against the dollar yesterday, tumbling to a five-year low of $1.6203. Yesterday, Mervyn King, governor of the Bank of England, said that the country was now “entering a recession” — the first time he has ever used the “R” word. He compared the recent capital flight from British banks with a “mild form” of a 1990s-style emerging market crisis, and noted that it will take a "long, slow haul" to bring economic growth back to more normal conditions. He added that policymakers will act to prevent inflation from slowing too far after the country’s worst banking crisis since World War I. The markets view this as a clear sign the Bank is gearing up for further significant cuts in U.K. interest rates. That will certainly further weaken the British pound sterling.

I continue to see these currency recommendations are the only safe havens in global financial markets. I expect further weakness ahead for the euro, as well as strength for both the Japanese yen and the U.S. dollar as we move ahead.

All of the current Global Stock Investor recommendations remain BUYs.

P.S. Surging oil and food prices, as well as deteriorating economic confidence, have stoked inflation fears around the world in recent months, leaving volatile markets and jittery private investors in their wake. In times such as these, it’s good to have this forum to discuss key developments and to hear from the best financial minds in the world. I invite you to join me at the 4th Annual World Money Show London, 14-15 November, at the Queen Elizabeth II Conference Centre. Call 800/970-4355 and mention priority code 009613 or visit The World Money Show London to register FREE today!

Exclusive  Booking 71.18% Biotech Gains in Just Five Days!

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

After continuing their remarkable volatility this past week, global markets ended the week just about where they started. Your defensive position in four currency positions -- long on the U.S. Dollar and the Japanese yen and short the euro and the British pound sterling -- continued to work as advertised, even as global stock markets thrashed about. Both the Direxion Funds Dollar Bull 2.5x Fund (DXDBX) and the Market Vectors Double Short Euro ETN (DRR) hit record highs on Friday.

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