Our Global Stock Investor portfolio ended the week broadly flat. Unusually, only a single Global Stock Investor stock, ABB Ltd. (ABB), closed the week at a record high. While the financial media is focused on the subprime woes of large U.S. financial institutions, it is important to remember that all of our global megatrend themes remain intact and — with the exception of the Swedish ETF iShares MSCI Sweden Index (EWD) — they all remain buys at current levels. I fully expect our picks to regain their momentum in the coming weeks, and to end the year on a strong note.
Anglo American (AAUK) hit a record high of just under $35 last Wednesday, but has pulled back since then. That means it’s a terrific time to add it to your global commodities supercycle play which remains a BUY.
ABB Ltd. (ABB) closed at a record high of $31.81 yesterday. ABB also announced that it has acquired the assets of PowerTran Company Ltd., an Edmonton, Alberta-based field and repair transformer service center. Our global infrastructure play ABB is a BUY.
America Movil (AMX) shareholders of record on Nov. 5 will receive a special dividend of $1.8615, payable on Nov. 13, according to the Bank of New York. The exact amount may be affected by exchange rate fluctuations. America Movil is a BUY.
iShares MSCI Sweden Index (EWD) ended the week broadly flat. Weakness in the Swedish corporate sector means Sweden stays a HOLD.
iShares MSCI Brazil Index (EWZ) closed up 1.67% for the week, after hitting a record high last Wednesday. The ETF is up a whopping 24.07% since we recommended it in mid-September. That’s an annualized rate of 398.55%. Brazil is red hot, and remains a BUY.
Currency Shares Japanese Yen Trust (FXY) nudged slightly upward this week on the market sell off. This pick is never going to soar like any of our other stock picks. Think of it as cash — but diversifying out of the declining U.S. dollar. It is a defensive BUY.
ICICI Bank (IBN) took a breather this week, after the relentless climb of this Indian financial play during the past few weeks. Now is a perfect time to open or add to your position as the year-end rally should carry this stock higher still. “India’s Citibank” is a BUY.
Millicom International (MICC) ended the week up 4.74% after it closed at a record high of $121.15 last week. This is a volatile stock, but those of you with the stomach to endure the gyrations, this global cell phone play remains a BUY.
ArcelorMittal (MT), the world’s largest steelmaker, received a final go-ahead from investors on Monday for the merger between Mittal Steel and Arcelor. The company also bolstered its presence in booming China on Wednesday by paying $647 million for a 28% stake in steel products maker China Oriental Group Co Ltd. With the stock off its highs from early last week, ArcelorMittal is a BUY.
Potash (POT) treaded water for the week, trading just below its recent highs. The investment case for this play on the global soft commodities boom remains intact and Potash is a BUY.
Tesco (TSCDY) breached the $30 level last week, no doubt helped by the strengthening U.K. pound, and anticipation of the first Fresh & Easy stores opening in California this week. This is a slow and steady, Warren Buffett-style gainer, on track for 25-30% annualized gains. BUY Tesco.
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