Nicholas Vardy
GLOBAL STOCK INVESTOR HOTLINE UPDATE 83
The global gloom continues, even as the epicenter of the global financial crisis shifts across the Atlantic toward Europe. European stocks saw their biggest drop in 20 years on Monday, after Europe’s haphazard efforts of addressing its own banking crisis rattled stock markets across the old continent. In London, the FTSE 100 index fell 7.9%, while the German DAX index and the French CAC-40 indexes sunk 7.1% and 9%, respectively. Russia suspended trading on its stock exchanges for two days this morning after blue chips posted double-digit percentage losses in the first 35 minutes of trading. Compared to global markets, the United States is getting off easy.
Currency Bets Hit Record Highs Again — And Doubling Up On The Dollar Rally
On Friday, the U.S. Congress passed a version of the $700 billion rescue package that it dramatically rejected on Monday. Some market commentators here in the United Kingdom, including Great Britain’s answer to Peter Lynch, Fidelity’s Anthony Bolton, have publicly said that they believe that markets have reached a "point of maximum pessimism." Bolton himself is actively re-entering the markets. That said, I don’t believe that Bolton, or anyone else for that matter, can predict the future. So instead of throwing away your money on subpar bets, I recommend that you stick with the single trend that has worked in global markets, the appreciation of the U.S. dollar, by re-entering the Direxion Funds Dollar Bull 2.5x Fund (DXDBX).
GLOBAL STOCK INVESTOR HOTLINE UPDATE 82
The drama in global stock markets continues. On Monday, U.S. markets were rocked by the news that the U.S. House of Representatives rejected the widely anticipated $700 billion rescue package for U.S. banks. Wall Street responded by hurtling the Dow Jones Industrials down nearly 7% — the biggest drop since September 11, 2001. The Dow’s almost 780-point decline was the largest one-day point drop ever for the index. The next day, the Dow rose 485 points, or more than 4.5%. That was the third-biggest point gain in the Dow’s history and the largest percentage climb in the Dow in six years.
GLOBAL STOCK INVESTOR HOTLINE UPDATE 81
Today, U.S. markets were rocked by the news that the U.S. House of Representatives rejected the widely anticipated $700 billion "bailout" package for U.S. banks. U.S. markets responded by dropping more than the day after September 11, 2001, and hurtling the Dow Jones industrials down nearly 7%. The almost 780-point decline was the largest one-day point drop ever for the index.
Special Alert: A Wild Day in Wall Street…
Today, U.S. markets were rocked by the news that the U.S. House of Representatives rejected the widely anticipated $700 billion "bailout" package for U.S. banks. U.S. markets responded by dropping more than the day after September 11, 2001, and hurtling the Dow Jones industrials down nearly 7%. The almost 780-point decline was the largest one-day point drop ever for the index.
Shorting The Euro… Yet Again
In an interview in Jack Schwager’s classic book Market Wizards, Jim Rogers observed that there are times when you should step back from the stock market altogether. As Rogers pointed out: "One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do… Most people always have to be playing." Certainly, with the kind of volatility in the stock market during the past three weeks, this is one of those times.