Categories: Bull Market Alert HotlinesStock Market News

The Global Bull Takes A Breather And Books Big Profits

If history is any guide, the start of September marks the single toughest week for global investors. That’s at least according to Stephen Eckett, editor of The UK Stock Market Almanac 2008. His calculations reveal that the 36th week of the year, which started yesterday, has the worst track record of the year for top U.K. companies’ share prices.

Since the FTSE 100 — an index of top 100 U.K. companies — first was compiled in 1984, the index has on average lost 1.1% of its value in Week 36, and has risen in just six of the past 23 years. And as integrated as global markets are in today’s world, what happens in a global financial center like London impacts markets everywhere.

Mr. Eckett can only guess at the reason: "It could be a combination of the end of the holidays and the evenings getting darker working together to depress the mood of investors, reducing their appetite for risk and thereby leading them to reduce equity exposure by selling stocks."

Whatever the explanation, let’s go with the historical odds and sit this week out. We’ll be back next week with another Global Bull Market Alert pick with big upside potential.

PORTFOLIO UPDATE

Given that this is historically the worst-performing market of the trading year, let’s take profits of 81.41% on our remaining POSCO options (PKXKG.X).

Overall, four out of our six positions are profitable — with POSCO (PKX) up 55.32% and Potash (POT) up 30.87% at or near record highs.

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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.