Markets Pull Back Across the Board

Nicholas Vardy

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

U.S. and global stock markets fell across the board last week.

The S&P 500 fell 0.36%. The Dow Jones dropped 0.40%. The Nasdaq tumbled 1.8% as tech stocks were hit hard.

Global markets corrected sharply, with the MSCI Emerging Markets Index plunging 2.97% — its worst week in several months. Your Smart Money Masters portfolio continued to move independently of the market.

Bruce Berkowitz’s bet on The St. Joe Company (JOE) rose 4.16% and moved back to a BUY. Mohnish Pabrai’s Fiat Chrysler Automobiles N.V. (FCAU) increased by 2.17%. It is up 17.51% just over the last month. Charlie Munger’s Costco Wholesale (COST) recovered 1.55% as the market’s love affair with Amazon.com (AMZN) continues to wane.

Five of your positions — PayPal Holdings (PYPL), Restaurant Brands International (QSR), Fiat Chrysler (FCAU), Baxter International (BAX) and Berkshire Hathaway (BRK-B) — boast double-digit-percentage gains.

Kraft Heinz (KHC), The Priceline Group (PCLN), Liberty Broadband Corporation (LBRDK), Vanguard FTSE Emerging Markets ETF (VWO) and BlackBerry (BBRY) are all trading below their 50-day moving averages and are currently HOLDs.

Portfolio Update

I had dinner last week with Bill Browder, CEO of Hermitage Capital Management, formerly the single biggest investor in Russia. I wrote about this in last week’s Global Guru: “My dinner with Putin’s #1 Enemy.”

I did not discuss where Bill Browder is currently putting his own money. As it turns out, Browder has no money in public markets.

Instead, Browder invests in funds that take an activist, hands-on approach to investing.

In other words, he invests in companies that are very similar to your holdings in private equity-controlled companies such as Restaurant Brands International (QSR), Baxter International (BAX), Kraft Heinz (KHC), Liberty Broadband Corporation (LBRDK), BlackBerry (BBRY) and Navigator Holdings (NVGS).

Exclusive  Daily Data Flow: Stocks Decline; Dollar Falls; Why Cyclicals Will Sizzle for Investors This Summer

Bill told me that he invests in these funds and companies for one reason: He knows that there is a team that is actively working to maximize shareholder value.

And he knows that activist investors are creating value regardless of the global financial markets’ latest mood swing. Bill doesn’t care about the short-term price movements because he knows that that will work itself out in the end.

Bill’s investment strategy confirms how the “smart money” in the world is thinking. And that strategy is reflected in your Smart Money Masters portfolio.

Sincerely,

Nicholas Vardy

Nicholas A. Vardy

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

International expert Nicholas Vardy shares several strategies for investors to prepare for the bear market that may just be around the corner.

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