GLOBAL STOCK INVESTOR HOTLINE UPDATE 97

Nicholas Vardy

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

Your Global Stock Investor portfolio had a solid week, with most of your positions either flat or rising. Both your stock holdings — Millicom International (MICC) and Nextel Holdings (NIHD) — were up for the week, with NIHD soaring 10.8%. Look for this stock to move sharply, as NIHD announces earnings tomorrow. J.P. Morgan also initiated coverage of MICC with a price target of $52.00. As I’ve mentioned, you can expect both of these positions to soar on any improvement in market sentiment.

Your defensive holding in the CurrencyShares Japanese Yen Trust (FXY) stayed steady around the $112 mark for the entire week. Your bet against the U.S. Treasury bonds provided more excitement, when the UltraShort Lehman 20+ Treasury ProShares (TBT) soared on Monday, before correcting yesterday. Former Morgan Stanley market maven Byron Wein predicted in his annual “Ten Surprises for 2009” that 10-year U.S. Treasury Yields will climb to 4% by year-end on rising inflationary expectations. That development would send TBT soaring.

Your normally low-profile holding in the Chinese yuan through the WisdomTree Dreyfus Chinese Yuan Fund (CYB) grabbed headlines this week as the new Treasury Secretary Timothy Geithner disclosed in his confirmation hearings that “President Obama… believes that China is manipulating its currency… (and)… has pledged as President to use aggressively all the diplomatic avenues open to him to seek change in China’s currency practices.” Of course, it’s no secret that China actively manages its currency — as does Hong Kong next door and several other countries with “managed floats.” The point of giving this well-known fact such an aggressively high profile was a diplomatic faux pas.

Exclusive  Eagle Eye Opener: International Markets Mixed; Fed Chairman Benanke Hints at Ultimate Transition; N. Korean Threats May Keep U.S. Defense Contractors Busy

Finally, if you’d like a humorous insight into the credit crunch — as well as a quick primer on how it all happened — watch these two clips from British comedians, Bird & Fortune. Part 1. Part 2.

Portfolio Update

The WisdomTree Dreyfus Chinese Yuan Fund (CYB) remained steady this past week despite Timothy Geithner’s amateurish diplomatic gaffe. I am keeping CYB at a HOLD.

PowerShares DB Commodity Double Short ETN (DEE) ended the week flat after enduring a sharp sell-off earlier in the week. This position acts as a hedge on global stock markets, and remains a BUY.

The CurrencyShares Japanese Yen Trust (FXY) stayed rock steady this week. This position does well when risk aversion soars. FXY is a BUY.

Millicom International (MICC) snuck back over the $40 level as some risk appetite moved back into the markets. J.P. Morgan initiated coverage of Millicom with a price target of $52.00. Although I believe this volatile stock will bounce strongly on any rally, I am keeping it at a HOLD.

Nextel Holdings (NIHD) soared 10.8% compared with last Tuesday’s close. The company will announce its 2008 year-end and fourth quarter financial results tomorrow. I am keeping NIHD at a HOLD.

UltraShort Lehman 20+ Treasury ProShares (TBT) soared early this week to an intraday high of $45.94 on Monday, before falling back yesterday. With the U.S. debt issuance at record highs, and Treasury yields still near record lows, TBT a BUY.

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

With global stock markets in a funk over the past few months, we've had to look toward other asset classes and instruments to generate trading profits. One of these areas has been currencies.

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