The big news during the weekend was Ireland’s acceptance of a massive bailout package from the European Union. The lifting of this uncertainty has helped global stocks get off to a solid start to the week as investors breathed a sigh of relief. After enduring a couple of weeks of choppy trading, I expect that global markets will regain their footing as we head into December.
Global markets have gone "on sale" as they are enduring the sharpest correction since August, after a relentless climb upward over the past two months. The current chapter of the European debt crisis and dangers of inflation in China have sent the markets into a tizzy. Two weeks ago, most of your positions were trading at or near yearly highs. After yesterday’s sell-off, most are back to where they were about a month ago. The MSCI Emerging Markets Index has dropped 5.8% since rising to a 28-month high on Nov. 5.
Global markets broke a five-week winning streak last week as concerns about Ireland’s sovereign debt, a possible slowdown in China and disappointing numbers from U.S. tech giant Cisco dominated the headlines. This was good news for your bet against the euro through ProShares UltraShort Euro (EUO), which gained 5%. Otherwise, all of your other positions — most notably the Bank of Ireland (IRE) — ended the week lower. You were stopped out of your position in the Global X/InterBolsa FTSE Colombia 20 ETF (GXG) — one of the top-performing markets of 2010 — for a 23.7% gain.
It was another strong week for your Global Bull Market Alert portfolio.
Well, if you wanted to know the world’s reaction to the Republican victories in the U.S. elections, you need not look further than Asian markets overnight. Markets there rallied sharply on the news of the Republicans’ takeover of the House of Representatives.
We had great (and profitable!) news from two of your recent Global Bull Market Alert stock picks last week.