The news today has to do with Libya, but the real concern here is higher oil prices, inflation and eventually higher interest rates. If the stock markets are turning slower for a temporary correction, then the financials sector is likely to lead on the way down. This is not the type of environment which will reward investors in interest-sensitive Spanish and Latin American banks.
What should I BUY or SELL now?
Stocks mentioned in this alert include:
Best wishes and happy trading! + Rudy Martin
Dear Subscriber,
It’s no surprise. We all know you can’t keep demanding good and services with funny money and not expect prices to rise. Here are five trades to “make your day” and fight back at inflation. This alert also includes a snapshot of your portfolios- at-a-glance, what you should own today if you had followed all the trade recommendations.
What else is new here?
Starting with this issue I will include a review of Today’s Trades at the end of the alert to help you sort through the changes to your portfolio. Over the next few days, I and the team will reformat all the prior idea alerts to help you see the past changes more clearly, including a quarterly trade idea recap and strategy piece.
Best wishes and happy trading! + Rudy Martin
With all the news about cut backs in Brazilian budget and the U.S. government’s own attempts to get spending under control, this is an ideal time to take some profits. In the next few days, I’m looking to reposition the portfolio for the coming global inflation waves.
What should I BUY or SELL now?
For today, here are three trades where we have profits in and where the funds should be moved to cash now.
Best wishes and happy trading! + Rudy Martin
As the New Year starts the Chinese are slowing their economy by putting new capital and accounting requirements on their banks. Chinese banks will now be required to gradually add their off-balance sheet trust operations on to the books. This will create a need for additional equity capital.
The solution? Issue more shares. Clearly if you look at the pending issuance calendar, many banks are already in line to raise capital over the coming quarters. And given the longer term fundamentals of the Chinese consumer, banks are likely to find willing stock buyers. But, personally I don’t see how you can make great returns in Chinese financial stocks against this massive outflow of issuance.
The question then is where is the value in financials? My answer to you is in emerging market financial stocks where capital is not a problem.
Best wishes and happy trading
+ Rudy Martin
What should I BUY or SELL now?
This month, I am positioning the portfolio to take advantage of better business activity, mergers and even stable interest rates. In a nutshell, there are three stocks that will likely continue underperforming and five that have the potential for above average returns.
Stocks mentioned in this alert include:
Trading Alert | May 18, 2010The Greek debt drama continues.
Greece received a 14.5 billion euro ($17.9 billion) emergency loan from the European Union today. This is just the first payment on the 110-billion euro aid package that Greece has received from the European Union and the International Monetary Fund.
Will the cash reduce investor fears about Greece’s default and that of other countries?
Trading Alert | March 17, 2010Don’t count the global natural resource commodity cycle over yet.
This week BHP Billiton (BHP:NYSE) announced that it is now getting huge rate increases for iron ore based on market-based shorter-term pricing versus the annual pricing system. Here are my comments on why this is also a plus for Vale (NYSE:VALE) and my other current trading recommendations to subscribers.
Stocks mentioned in this alert include:
Trading Alert | December 15, 2009World oil demand is forecast to return to growth in 2010 following two years of devastating declines. According to the OPEC's December report, the growth would be driven by demand in developing countries, which should more than offset declines in industrialized or OECD nations.
Energy-independent Brazil will be a more significant oil and ethanol exporter next year. Here’s my favorite Latin American energy stock recommendation for 2010.
