Nicholas Vardy
GLOBAL STOCK INVESTOR HOTLINE UPDATE 38
Considering the week of Thanksgiving is traditionally one of the strongest of the year, it’s not been a great week. Asian markets tumbled overnight and shares fell across Europe as crude oil flirted with $100 per barrel. Hong Kong shares fell sharply and Japan’s benchmark index fell to its lowest level in 16 months. Since the start of November, the index has dropped 13.1%. In Europe, most markets also were lower.
Profiting with the Spanish Conquistadors 2
In past editions of The Global Guru, I’ve written about The New Spanish Conquistadors — Spanish companies that have exploited their historical links by expanding into Spanish and Portuguese language markets in Latin America. Like their predecessors in the 16th and 17th centuries, these new Spanish explorers have looked far beyond their own small domestic market of 40 million to reap rich profits for themselves and their shareholders. This week’s Global Bull Market Alert pick — Spanish telecom group Telefonica S.A. (NYSE: TEF) — is just such a corporate conquistador.
GLOBAL STOCK INVESTOR HOTLINE UPDATE 37
There are three words that I would use to describe the market’s behavior this past week: "noise, noise, noise" — and lots of it. Our Global Stock Investor holdings endured some eye-popping volatility, with stocks like Potash (POT) selling off more than 20% on Friday and Monday, before bouncing sharply on Tuesday. And all this took place in the absence of any news specific to the stock.
The Global Bull: Nerves Frayed
It’s been a nerve-wracking week for global markets. The ongoing credit woes, the deteriorating dollar, and it’s no wonder that the U.S. market just endured its worst week since July of this year. You’d have to look far and wide for any stocks that did well last week. As I said on Fox Business this morning, investors are throwing out the baby with the bathwater.
GLOBAL STOCK INVESTOR HOTLINE UPDATE 36
Our Global Stock Investor portfolio ended the week broadly flat. Unusually, only a single Global Stock Investor stock, ABB Ltd. (ABB) closed the week at a record high. While the financial media is focused on the subprime woes of large U.S. financial institutions, it is important to remember that all of our global megatrend themes remain intact — and with the exception of the Swedish ETF iShares MSCI Sweden Index (EWD) — they all remain buys at current levels. I fully expect our picks to regain their momentum in the coming weeks, and to end the year on a strong note.
The Global Bull Takes A Breather
With all of the focus on the subprime woes of Merrill Lynch and Citibank — and the subsequent high profile resignations of their CEOs — it’s easy to forget that the rest of the world is doing just fine, thank you. Much of your portfolio saw record highs last Monday, before selling off in sympathy with Wall Street toward the middle of the week. By Friday, most of your positions had found their feet and closed the week on a positive note.