Nicholas Vardy
GLOBAL STOCK INVESTOR HOTLINE UPDATE 52
After several strong weeks for your Global Stock Investor portfolio, the last few days have seen most of your holdings pull back from their recent highs. The good news is that the CurrencyShares Japanese Yen Trust (FXY) hit a record high this week, and all but one of your Global Stock Investor picks is still showing a profit. You should be pleased, especially considering that only a handful of global markets are up so far in 2008, including Pakistan and Saudi Arabia, both of which are no-go zones for all but a few U.S. investors.
Taking Double Digit Profits In China
I’ve noted in the past that your 2x short position in China through the UltraShort FTSE/Xinhua China 25 Proshares (FXP) has not performed as advertised. Since you entered the position on Nov. 26, the FTSE/Xinhua China 25 Proshare Index (FXI) has dropped 15.32%. That means FXP should be up approximately 30%. Instead, FXP has only matched the unleveraged return of a short position in FXI. That kind of "tracking error" is unacceptable.
The Global Bull Market Alert Strategy Shines in Tough Times
The markets had another rough day on Friday, when the drop in the U.S market wiped out almost all of the week’s gains in a single day. With Asian markets tumbling overnight last night, it’s likely to be a slow start to this week, as well. Your Global Bull Market Alert portfolio, however, has held up well in these tough market conditions.
GLOBAL STOCK INVESTOR HOTLINE UPDATE 51
It was another strong week for your Global Stock Investor portfolio. Coca-Cola Hellenic (CCH) soared 11.31% and your two agricultural plays, the PowerShares DB Agriculture (DBA) and Potash (POT) jumped 6.92% and 5.92%, respectively. Millicom (MICC) also jumped 7.19%, Veolia (VE) 5.16% and ArcelorMittal (MT) 5.65% in a week that was marked by sharp gains across global markets.
Take Triple-Digit Percentage Profits on the Agriculture Commodity Boom — And Adjust Your Stops on DBA And KOL
Your holdings in the PowerShares DB Agriculture ETF (DBA) jumped more than 3% yesterday, and the options are now up 123.73% just since Jan. 22.
Tapping into the Bull Market in the “New Gold”
Over the course of the last six weeks, your Global Bull Market Alert portfolio has shifted away from global stocks toward investments that are less correlated to global markets. This strategy is paying off. Based on Friday’s close, every single one of your Global Bull Market Alert holdings is currently profitable — except for a 0.64% loss in our Japanese Yen investment, CurrencyShares Japanese Yen Trust (FXY). Considering most global markets are down 10-15% in 2008, that accomplishment is no mean feat. The PowerShares DB Agriculture ETF (DBA) continues to shine and is up 16.34% since we’ve recommended it, with the options up 86.44%. Both of your plays on gold and silver — Yamana Gold Inc. (AUY) and the Silver ETF, iShares Silver Trust (SLV), now also are solidly in the black.