Nicholas Vardy
GLOBAL STOCK INVESTOR HOTLINE UPDATE 69
It was a turbulent week for your Global Stock Investor portfolio, as the broad-based sell off in global markets continued.
Pulling in the Global Bull’s Horns… And Taking Profits on Atwood Oceanics (ATW) Options
Scan the headlines and it is hard to be optimistic. Global equities are heading for their worst first-half performance in 26 years. The MSCI world equity index has fallen 11.7% since the start of the year, its worst first-half run since a decline of 13.8% during the first six months of 1982. In Europe, the FTSE Eurofirst was 21% lower for the year, its worst first-half performance since the index was launched in 1986. Because of the general weakness in the markets, I’m going to hold off on making a new recommendation today. In times of uncertainty, it’s best to pull in your trading horns.
GLOBAL STOCK INVESTOR HOTLINE UPDATE 68
It was a quiet week for most of your Global Stock Investor portfolio, as markets flirted with their March lows. Investors are anxiously awaiting the Federal Reserve’s latest interest rate announcement this afternoon. Most of Wall Street expects the Fed will stand pat on rates today. Others say that thanks to rising inflationary pressures, the Fed could actually start raising rates. My own view is that it is unlikely that the Fed will make a move upward. The global economy and financial system are still just too unstable.
A Bull Market with Some Real Meat — And Taking Some Quick 77.40% and 62.50% Profits
Global Bull Market Alert is all about uncovering bull markets around the globe, wherever they may be. With global stock markets at three-month lows, this week’s Global Bull Market Alert pick focuses on the little known, and until recently inaccessible, world of livestock, the iPath Dow Jones AIG Livestock TR Sub-Index ETN (COW). This unusual ETN reflects the performance of livestock through two futures contracts, lean hogs (69%) and live cattle (31%). And here’s why I expect it to soar in the months ahead even if global equity markets continue to struggle.
GLOBAL STOCK INVESTOR HOTLINE UPDATE 67
Overall, your Global Stock Investor recovered in line with the broader markets this week. Potash (POT) continued to soar to record highs, even as the Elements Rogers International Commodity ETN (RJI) hit never-before-seen levels. Potash now is up more than 118% since you first added it to your portfolio in October.
Investing in the World’s #2 Market — And a Bonus Options Play
In a year wracked by economic uncertainty and stumbling global stock markets, Russia has been an unlikely standout performer. Even as China is now down by more than 50%, bad boy Russia’s performance has been second only to Brazil this year and it actually has outperformed its BRIC rival by a hair during the past three months. Despite Russia’s reputation as a country rife with corruption, scant respect for genuine democracy and the Rule of Law, it’s always hard to argue with success. This week’s Global Bull Market Alert pick, the Market Vectors Russia ETF (RSX), is a bet that Russia’s buoyant stock market performance this year is set to continue.