Global markets both sold off (on Friday) and bounced sharply (yesterday) during the past week. With political protests in Tunisia and Egypt quickly spreading to Jordan and Syria, we are heading into an unstable period in emerging markets. At the same time, this period just may turn out to be as historic as the fall of the Berlin Wall was in 1989. Thanks to technology and the ability of protesters to organize themselves quickly, the world’s last remaining totalitarian regimes may crumble more quickly than we ever thought possible.
One thing is for sure: volatility is back. So keep your eye on your stops.
Your Global Stock Investor portfolio is well-positioned to weather the storm. A story in last Thursday’s Investor’s Business Daily confirmed that your holdings include the top-three-performing exchange-traded funds in global markets over the last six months. The iShares MSCI South Korea (EWY) and iShares MSCI Taiwan (EWT) tied for first place, each with a 27% return. Second place went to Market Vectors Russia (RSX), up 25%.
With political and food-related protests in Egypt dominating the headlines, I expect an agriculture-related stock like Agrium Inc. (AGU) to perform particularly well in the weeks ahead. Universal Display Corp. (PANL), Las Vegas Sands Corp. (LVS) and Freeport-McMoRan Copper & Gold, Inc. (FCX) all rallied sharply this past week. As both LVS and FCX moved above their 50-day moving averages, I am moving both of them back to a BUY.
In addition, FCX carried out a stock split today that gives you an additional share for every share you currently own. The move also cuts the price of the stock in half and thereby reduces our stop price to $47.50 from the previous stop of $95. As for your dividend payments, the regular quarterly cash dividend of $.50 a share was scheduled to be paid yesterday, Feb. 1, on the pre-split shares. After the stock split, the regular cash dividend is expected to be $1.00 per share annually, payable in $.25 a share increments each quarter. Management explained that the moves reflect the company’s strong current cash position and positive share-price performance.
Finally, I want to remind you that I will be hosting a special private meeting for my subscribers during The World MoneyShow in Orlando, Fla., on Friday, Feb. 11, at 11 a.m., in the Destin Room of the Gaylord Palms Hotel. If you wish to attend, please click here to sign up. I look forward to seeing you there.
Portfolio Update
Agrium Inc. (AGU) rose 4.51% this past week. Some of the best-performing stocks in the past week have come from agriculture-related industries, including those in fertilizers and farm equipment. AGU remains a BUY.
The WisdomTree Dreyfus Chinese Yuan Fund (CYB) was flat this week. Yuan deposits in Hong Kong rose to a record in December, as policymakers prepared to allow companies to sell yuan-denominated shares in the city. Trading just below its 50-day moving average, CYB is now a HOLD.
iShares MSCI Malaysia Index (EWM) traded slightly up this past week. One of Asia’s fastest-growing economies, EWM remains a BUY.
iShares MSCI Taiwan Index (EWT) rose 2.24% this week, as the Taiwan exchange-traded fund has soared to the highest level since June 2009. EWT remains a BUY.
iShares MSCI South Korea Index (EWY) ended the week up 2.69%. South Korea’s trade volume expanded three-fold in the last 10 years, helping the country become the seventh-largest exporter in the world. EWY remains a BUY.
Freeport-McMoRan Copper & Gold, Inc. (FCX) bounced 7.18% last week, as copper roared back to record highs. As I explained above, FCX had a stock split take effect today, so you received an extra share of stock for each share you own and the per-share price has been halved. Having sliced back up through its 50-day moving average, this volatile stock is back to a BUY.
Global X FTSE Nordic 30 ETF (GXF) jumped 3.47% this past week. If you are going to be invested in Europe, Scandinavia is the place to be. GXF is a BUY.
JinkoSolar Holding Co., Ltd. (JKS) fell 2.83% in this week’s trading. The company’s strategic cooperation agreement with Bank of China Ltd. includes up to RMB$50 billion (USD$7.6 billion) in potential credit facilities over a five-year period. Considering that the company’s market cap is only $590 million, it is clear that China has big plans for this company. JKS remains a volatile BUY.
Las Vegas Sands Corp. (LVS) jumped 8.99% this past week. Singapore will be in focus as LVS reports its fourth-quarter earnings on Thursday. Analysts are calling for a profit of 39 cents a share on revenue of $2.07 billion. Jumping back above its 50-day moving average, Asia’s Las Vegas is now a BUY.
Market Vectors Russia ETF (RSX) rose another 3.06% this week on rising oil prices. The “bad boy” of emerging markets, RSX, is a BUY.
Universal Display Corp. (PANL) roared back 12.86% this week. This volatile play on Samsung’s growing dominance in the cell phone space remains a BUY.
Vale S.A. (VALE) traded up slightly this week. Vale now is vying to develop the world’s largest untapped coking coal deposit in Mongolia. As the world’s biggest iron ore producer, Vale is a BUY.
