Nicholas Vardy
Global Stock Investor Hotline 9
Global markets have gotten choppier over the past week or so, as they stand on the cusp of a correction or a sharper move upwards. Overall, global stock markets are feeling healthier than even a month ago. If history is any guide, the market may head upwards for another few weeks, before it’s time to "sell in May, go away."
A Bullish Bet on the “Other China”
With global markets up six weeks straight, the battle between the bulls and the bears is in full force. The market Cassandras are still predicting the coming collapse of the economy, while bulls are pointing to signs of an economic rebound.
A Bit of “Chile” and Spice…
With a rise in global stock markets extending into its fifth week, it is becoming increasingly hard for stock market skeptics to stay on the sidelines. In fact, it looks like the "decoupling theory" — that the stocks of emerging markets are set to do better than those of developed markets such as the United States — is making a comeback.
Global Stock Investor Hotline 8
The four-week market rally in global stock markets seems to be getting a bit long in the tooth. Asian stock markets dropped for a second day this morning, with Tokyo and Hong Kong tumbling about 3%. The U.S. earnings season got off to a negative start with aluminum maker Alcoa reporting a wider-than-expected loss yesterday. It’s still too early to put a nail in the coffin of the rally in global equity markets. After all, we still have six or seven weeks before it’s time to "sell in May, go away." But the pause is certainly making some investors nervous.
The Global Bull Bets on the BRICs
The G-20 meeting last week here in London resulted in a surprisingly positive shift in global markets sentiment. When I saw George Soros speak last week here in London, he argued that the real danger to the global economy is from the peripheral countries — the weak eurozone countries like Ireland, and others in Central and Eastern Europe. While the "center" had stabilized, the G-20 needed to strengthen the IMF so that it could bail out the marginal economies before their impending collapse threatens the global economy with financial contagion.
Global Stock Investor Hotline 7
Yesterday, I saw hedge fund superstar George Soros speak at the London School of Economics (LSE). Soros, a graduate of the LSE, is in London to get his message out to the leaders meeting at the G-20 conference this week, and to push for them to increase the role of the International Monetary Fund (IMF) in bailing out smaller economies.