Nicholas Vardy
Global Stock Investor Hotline 48
It was a tough week overall for global stock markets.
Global Bull Market Alert Special Alert — Taking 27% Profits
Millicom International (MICC) jumped 7.62% in yesterday’s trading as the company announced better than expected earnings. Earnings before interest, tax, depreciation and amortization (EBITDA) rose 20 percent to $424 million, versus the average forecast in a Reuters poll of $411 million. Sales were $905 million against a forecast of $887 million.
Hedge the Pullback with the Yen
The pullback in global markets that we were expecting came in dramatic fashion last week. The U.S. stock market’s six-session streak of gains ended following news that the Securities and Exchange Commission (SEC) has levied fraud charges against Goldman Sachs. The NYSE composite dropped 1.7% and the S&P 500 fell 1.6%. Goldman Sachs dived 13% in more than nine times its average volume.
Pausing for Breath, Waiting for a Pullback
With the U.S. markets up six weeks in a row, global markets are suddenly awash in optimism. Global growth is returning across a wide range of sectors. Projected economic growth rates for 2010 are being revised upward across many countries around the world. Even the cost of bank bailouts in the United States is now being revised steadily downward, according to today’s Wall Street Journal.
Global Stock Investor Hotline 47
Global stock markets continued to recover over the past week, with markets up across the board for the past three trading days. This was reflected in your Global Stock Investor portfolio where all but two of your stock-related positions rose at least 4%.
A Teutonic Play on Global Recovery
Germany doesn’t get a lot of respect in the global investment world. After all, when is the last time you received a solicitation for a newsletter focused on profiting from the "German miracle?" Yet, as the world’s fourth-largest economy and, up until recently, the world’s no. 1 exporter, high-end German manufacturing expertise is what keeps much of the world’s factories going.