In her top-performing Global Investing advisory, Vivian Lewis looks at a lesser-known area of the income market -- non-cumulative preferreds -- explaining these vehicles and offering some favorites.

"Over 20 years ago, Barclays Bank, which is British, invented a new vehicle for raising money in the U.S. market to enhance its capital ratios and finance its growing dollar business.

"They were called non-cumulative preferred shares and were issued at $25/share to pay dividends four times a year just as normal U.S. stocks do. The clear target for these vehicles was U.S. retail investors.

Continue reading 'Royal' income: A look at non-cumulative preferreds

'Royal' income: A look at non-cumulative preferreds originally appeared on BloggingStocks on Fri, 19 Jun 2009 13:20:00 EST. Please see our terms for use of feeds.

Despite a 46% gain since adding iShares MSCI Brazil (NYSE: EWZ) to his portfolio, global expert Keith Fitz-Gerald still sees upside potential. Here's the latest from Money Map Reporter.

"History tells us that the best gains come to those who have the courage to buy undervalued companies in the face of extreme pessimism - and that sounds a lot like right now. So while we may not be at the very bottom, we are nonetheless pretty darn close.

Continue reading Money Map points to Brazil

Money Map points to Brazil originally appeared on BloggingStocks on Wed, 03 Jun 2009 11:20:00 EST. Please see our terms for use of feeds.

"Investing in food is a simple story: expanding supply and demand fueled by rising global urbanization," says Yiannis Mostrous. In Personal Finance newsletter the global advisor looks at Monsanto (NYSE: MON).

"The global population is expected to surpass 9 billion by 2050. Wages are rising in emerging economies--led by India and China--and more people are moving into cities where the consistent and better paying jobs are.

"That means greater demand for protein-rich foods, especially meat and dairy consumption. The consumption of both has a strong correlation to urbanization. The result will be a permanent increase in demand for crop grains for feeding.

Continue reading Monsanto (MON): Planting the seeds of growth

Monsanto (MON): Planting the seeds of growth originally appeared on BloggingStocks on Wed, 04 Feb 2009 14:00:00 EST. Please see our terms for use of feeds.

For 26 years, at the start of each year, I've conducted an annual survey of newsletter advisors, asking for their favorite investment for the coming year. Until 2 or 3 years ago, their responses were almost always individual stocks and an occasional mutual fund.

Increasingly in recent years, many advisors have found their favorite positions to be exchange traded funds, whereby they can invest in a sector, region, or strategy without the inherent risk of an individual company. Indeed, in this year survey of 75 advisors, fully 1 out of 5 advisors chose ETFs.

ETFs were a popular choice for those seeking global exposure. Mark Salzinger, editor of The Investor's ETF Report, selects the S&P China SPDR (NYSE: GXC) as his favored play. (Read the full article here.)

Nick Vardy sees opportunity in China, but also sees potential in a broader range of emerging global markets. The editor of Global Stock Investor looks to the iShares MSCI Emerging Markets (ASE: EEM) as his top idea for 2009. (Read the full article here.)

Carl Delfeld of Chartwell Advisors also wants to own a basket of emerging markets stocks, but only small caps. His pick is the WisdomTree Emerging Market Small Cap (NYSE: DGS). (Read the full article here.)

Jim Lowell takes a similar view -- chosing global small caps -- but adds a further restriction. His recommended ETF limits its holdings to dividend paying stocks. Hence, the top pick in his Marketwatch ETF Trader is the WisdomTree International Small Cap Dividend (NYSE: DLS). (Read the full article here.)

ETFs an also be used to play a specific sector, such as consumer stocks. Leonard Goodall sees upside in companies making the "basics" such as soda, toothpaste and soap. In his No-Load Fund Investor, his top way to play this trend is the Consumer Staples ETF (NYSE: XLP). (Read the full article here.)

In addition to using ETFs to invest in a region, country or sector, these vehicles can also be used to invest in a certain strategy. For example, Tom Bishop, editor of BI Research, chooses the PowerShares Value Line Industry Rotation ETF (NYSE: PYH), which rotates its holdings to only include stocks that earn Value Line's top investment rating. (Read the full article here.)

Doug Fabian, editor of Successful Investing, looks to PowerShares DB Crude (NYSE: DXO), an exchange-traded note. While this leveraged position goes up twice as much as the underlying index when it rises, it also goes down twice as much when the index declines. (Read the full article here.)

Paul Tracy, editor of StreetAuthority Market Advisor takes a similar approach, but rather than speculate on the price of oil and gas, he looks to ProShares Ultra Oil & Gas (NYSE: DIG), which invests in a basket of stocks operating within these sectors. (Read the full article here.)

The most popular choice in this year's survey was ETFs investing in gold. Both Vivian Lewis, editor of Global Investing, recommends the SPDR Gold Trust (NYSE: GLD); it's price reflects 1/10th of an ounce of gold. (Read the full article here.)

Mary Anne Aden, editor of The Aden Forecast, also selects the SPDR Gold Trust (NYSE: GLD) as her top investment ideas for the coming year. (Read the full article here.)

Mark Leibovit, market timer and editor of VRTrader, holds a long-term bullish view on gold and opts for upside leverage. His top pick is the PowerShares DB Gold Double Long (NYSE: DGP). (Read the full article here.)

Pamela Aden, co-editor for The Aden Forecast, also sees upside potential in gold but prefers to invest in the companies that mine for the precious metal. Her top pick is the Market Vectors Gold Miners (NYSE: GDX). (Read the full article here.)

For greater leverage (and higher risk), Steve Rawls, editor of Tipping Point Stocks, suggests the ProShares Ultra Gold (NYSE: UGL), which moves twice the rate of the underlying London gold price. (Read the full article here.)

Mike Larson, editor of Money & Markets, sees downside risk in financial stocks. But rather than try and select which stock might fall, he opts for a basket of financial players with the ProShares Trust Short Financials (NYSE: SEF). As an "inverse" fund, this moves in the opposite direction of the underlying index. (Read the full article here.)

And for even higher risk and volatility, Michael Shulman, editor of ChangeWave Shorts, looks to the ProShares UltraShort Financials (NYSE: SKF), an inverse double fund. Not only does it move in the opposite direction of financial stocks, but it moves twice as much. (Read the full article here.)

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

15 favorite ETFs for 2009 originally appeared on BloggingStocks on Fri, 16 Jan 2009 14:00:00 EST. Please see our terms for use of feeds.

Q. Allan, how can investors protect themselves should the financial crisis in the US result in prolonged bear markets around the world?

A. Studies have shown the majority of returns from the stock market have been concentrated over a relatively few days, so it is important to have some exposure. My experience, though, has shown bear markets last longer than you think. Asset allocation is particularly important and I would increase cash from my bond allocation rather than from my stocks. Now is the time to buy really high-quality stocks at attractive prices, those that have sustainable advantages, or what Morningstar calls "moats."

Morningstar borrowed the concept of a moat from Warren Buffett. Just as a moat around a castle protected the castle from invaders, a company's moat protects the firm from competition. Moats can be generated from being the low-cost producer; having intangible assets, such as patents or other unique intellectual property; and high switching costs that make it uneconomical to change to another product or service. All of these improve a firm's ability to compete as well as earn returns above its cost of capital.

Continue reading Global Q&A: Investing During a Global Crisis

Global Q&A: Investing During a Global Crisis originally appeared on BloggingStocks on Fri, 03 Oct 2008 12:10:00 EST. Please see our terms for use of feeds.

Q. Your Asia Focus Fund and China & Hong Kong Fund have stellar three- and five-year returns, but have not been immune from the recent global market slowdown. Many commentators have forecast the end of the China "bubble," cautioning that after the Olympics, China's fortunes may suffer. But you disagree, correct?

A. I believe China's growth prospects still look good in spite of the global slowdown. China's economy has benefited in the past from an export boom, and this will be hit by slowing demand from the US and Europe. But we should not forget that China has a substantial domestic economy which, although linked to external trade, does not depend on it exclusively. The Olympic Games caused production to slow as factories were closed to reduce pollution during the Games, but we now expect that to pick up.

China's prospects can still be heavily influenced by policy decisions which are backed up with significant reserves and budget surpluses. Since last year, the authorities have maintained a tightening bias as inflation rose to a peak of 8.7%. Now, [with inflation] at 6.3% in July and set to fall further, the government has shifted to a pro-growth bias. We expect to see some concrete announcements, which could include energy price adjustments to address the recent supply shortages of electricity and diesel fuel; tax boosts to support exporters; selected easing of bank lending controls, and slower currency appreciation against the US dollar.

Q. What is your near- and long-term forecast for the region?

Continue reading Global Q&A: A true believer in Asia

Global Q&A: A true believer in Asia originally appeared on BloggingStocks on Thu, 18 Sep 2008 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Global Q & A: Conserve your resources

Global Q & A: Conserve your resources originally appeared on BloggingStocks on Wed, 13 Aug 2008 17:55:00 EST. Please see our terms for use of feeds.

"My ETF pick for the week is in honor of John Templeton not just because of his meeting his final summons this week at age 95 but because it highlights one of the key tenets of his legendary investment career. Templeton's first maxim was to buy at the point of 'maximum pessimism'. IRL trades at a 15% discount to net asset value.

"Ireland has gone from darling to outcast in less than a year in the eyes of the global investment community. Rather than look for markets that were performing well, Sir John built a career looking for troubled or ignored markets that traded at attractive valuations.

"Due to vastly overvalued property markets and loose banking and fiscal policy, the market is done close to 70% since last fall. It's growth rate has averaged 7-8% during the past decade but growth prospects have been officially lowered to zero for 2009 and its economy actually shrank in the first quarter of this year.

"To make matters worse, property prices in the posh retail areas of Dublin have already dropped 50% and home prices have fallen 20%. Ireland's stock market is now the cheapest market in the world based on forward price earnings and price to book."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

New Ireland (IRL): A 'Templeton value' originally appeared on BloggingStocks on Mon, 28 Jul 2008 09:50:00 EST. Please see our terms for use of feeds.

Paul Tracy believes Templeton Emerging Markets (NYSE: EMF) is a buy due to the emerging market expertise of its manager, Mark Mobius. Here's the latest from his from The ETF Authority.

"Emerging markets can dangerous waters for U.S. investors. These markets often have little to no analyst coverage and can be highly inefficient.

"As such, this is an area where expert active management can be well worth the higher price tag. And despite charging 1.55% in annual expenses, the Templeton Emerging Markets Fund certainly falls into that category.

"Given the potential pitfalls, it's reassuring to know that this fund is overseen by Dr. Mark Mobius -- a battle-tested veteran with decades of experience dealing with these uncertain stocks.

"While most funds have no discretion when it comes to making tactical decisions, Mobius and his team have the flexibility to steer clear of troubled regions or sectors -- and overweight those that look particularly promising.

Continue reading Mark Mobius guides Templeton Emerging (EMF)

Mark Mobius guides Templeton Emerging (EMF) originally appeared on BloggingStocks on Wed, 28 May 2008 13:44:00 EST. Please see our terms for use of feeds.

All this recession talk has not convinced me that we are destined to have one, and I see plenty of signs that 2008 might surprise to the upside. There are plenty of problems within the US economy, and I could make a case that there is a possibility that the economy might catch cold but remedies also exist. I see the cup as half full for the stock market. This is not to say that individuals will not have to deal with hard times, they will - but the market might shine. This can happen because the market is global.

Many widely followed investment icons have a different perspective, including renowned international investor Jim Rogers in the December issue of Fortune who said, "In my view, the U.S. economy is in recession. I know the government says we're not. But as I look around, we know that automobiles are in worse than recession. The same thing is true for home-builders. Much of the financial sector is in worse than recession. So many parts of America are in worse than recession, and yet the government says we're not in a recession. I don't know what's so strong that it's offsetting these major weaknesses in the American economy. I just assume that the government is lying."

I can agree that the government is lying, but I can't agree that the economy is void of positives. There is plenty that is going strong in the economy. The defense sector is going strong as I reported on recently Defense sector rolls over S&P 500 for 8th straight year and there is every indication this will continue.

Continue reading Serious Money: No recession in 2008

Serious Money: No recession in 2008 originally appeared on BloggingStocks on Wed, 02 Jan 2008 11:03:00 EST. Please see our terms for use of feeds.

I've just returned from the World Money Show in Orlando where more than 10,000 investors gathered to learn about global investing. I had a chance to meet with many of the U.S. and foreign financial experts featured at the show, and over the next week I will share some of their top investment ideas. To view all of the stocks featured in this special global report, click here.

"In 2006, investing in BRIC countries -- Brazil, India, China -- was the rage," notes Carl Delfeld, a expert on exchange-traded funds. In his Chartwell Advisors he focuses on Brazil.

"While China and India received most of the attention last year, the iShares Brazil ETF (NYSE:EWZ) was up 45.4% -- not bad, not bad at all. But the lingering question is whether Brazil's economic recovery is sustainable or just another stage in the economic cycle.

"What is most interesting to me is that Brazil's stock market's performance during the past four years is not due to superior economic growth. It has had an annual average growth rate of only 2.6%, about half of world economic growth during the same period. My view is that Brazil has been primarily a balance sheet story supported somewhat by the commodity boom.

"Inflation is muted and was only 3% during 2006. Brazil is almost energy independent, and foreign exchange reserves are now almost $100 billion after paying off its nettlesome IMF debt. In 2006, it recorded a trade surplus of $46 billion, and while interest rates are high, they are beginning to fall.

Continue reading Global gains: Two experts bet on Brazil

Global gains: Two experts bet on Brazil originally appeared on BloggingStocks on Sat, 17 Feb 2007 14:30:00 EST. Please see our terms for use of feeds.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

DryShips Inc. (NASDAQ: DRYS) is the top speculative idea for 2007 from Vivian Lewis, editor of Global Investing. She notes, "The company is an operator of a drybulk cargo fleet, and produced no more negative surprises with its unaudited financial and operating results for the third quarter.

"True, there was a net loss of $9.4 million (a loss of 28 cents per share) from Forward Freight Agreement losses previously announced. They were made by the now-fired CFO early in 2006. He disastrously misjudged the drybulk charter rates trend.

"His replacement, Gregory Zikos, a lawyer, MBA, and investment banker, has just been named CFO and to the DRYS board. Meanwhile, Cantor Fitzgerald reiterated a 'buy' on DRYS, forecasting 2006 earnings at $2.24 and 2007 at $2.15, below earlier estimates but with more confidence. Cantor's target is $16.

"Apart from these losses, the rest of the quarter was within the norms of highly leveraged Greek shipping companies, and net income in the quarter would have been 50 cents per share.

"Meanwhile, Dryships' major shareholders (led by George Economou) reinvested the 20 cent per share dividend payment they were scheduled to receive in October, in the amount of about $3.1 million, in DryShips shares. For speculative investors, we consider the stock a strong buy."

To see Vivian's favorite conservative global idea for 2007, click here.

Top Picks 2007: Vivian Lewis travels on DryShips originally appeared on BloggingStocks on Sun, 31 Dec 2006 14:30:00 EST. Please see our terms for use of feeds.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Osaka, Japan-based Chris Loew -- who covers Japanese stocks for Global Investing -- picks both his speculative and conservative favorites for 2007 from the same consumer trend. He explains, "In the apparel sector, fur is huge this year. The must-have item in Japan this winter is a down coat with real raccoon or tanuki (raccoon-dog, fox family) fur trim on the hood (priced about $250).

"Sanei International Co., Ltd. (JP:3605) (Other OTC SNEIF) -- my conservative pick for 2007 -- owns a multitude of apparel brands, mainly for women, and operates 1,088 stores and is well positioned to profit from this frenzy.

"The stock is reasonably priced at a P/E around 15 to17, barely reflecting improved consumer demand this year. In '07, the real-fur trend and looser consumer spending should give Sanei shareholders a warm feeling.

Continue reading Top Picks 2007: Chris Loew sees fur frenzy in Japan

Top Picks 2007: Chris Loew sees fur frenzy in Japan originally appeared on BloggingStocks on Thu, 28 Dec 2006 08:30:00 EST. Please see our terms for use of feeds.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Internet Initiative Japan Inc. (NASDAQ: IIJI) is the top global speculation from John Christy, editor of The Forbes International Investment Report. He notes, "Japanese small caps have been clobbered in 2006 -- down about 50% year-to-date.

"The group got hammered by the Livedoor scandal earlier in the year and never got back on its feet. And with blue chips such as Canon and Toyota delivering double-digit gains, there wasn't much need to bother with smaller companies anyhow.

"This should change in the year ahead. International markets have done extremely well across the board and investors are looking for pockets of opportunity.

"In particular, hedge funds have been sifting through the rubble in Japanese small caps. These companies tend to be more profitable, more entrepreneurial -- and much cheaper -- than their large-cap peers.

"IIJI's net income doubled in its most recent quarter on strong demand for its IT outsourcing services. As Japan Inc. continues to restructure, IIJI's expertise will continue to be in demand. At a recent $9, IIJI sells for less than 20 times earnings.

"The company recently moved to the First Section of the Tokyo Stock Exchange, which will boost its visibility with investors. There's still a lot of risk -- IJII has been an extremely volatile stock. But as long as IIJI continues to deliver strong profit growth, there will be plenty of upside."

To see John's favorite conservative international idea for 2007, click here.

Top Picks 2007: Christy goes online for Japan originally appeared on BloggingStocks on Wed, 27 Dec 2006 14:30:00 EST. Please see our terms for use of feeds.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Templeton Emerging Markets Fund (NYSE: EMF), a closed-end fund, is the top speculative idea from Daniel Frishberg, BizRadio host and editor of TheMoneyMan.com.

He says, "Right now, shoppers are buying, foreigners are spending, Asia and Latin America are growing, the world is awash in money, interest rates are low and jobs are plentiful -- so any sell-off early in 2007 could mark a real opportunity to join a stock market that's about to blast off.

"Templeton Emerging Market covers the Pacific and Asia, excluding Japan. Stocks of China, Taiwan, South Korea, Turkey are the main holdings. In each of the last couple of years, it has issued a very large dividend, and many advisors have suggested getting in, in advance, to capture the dividend.

"In reality, the stock declined by the exact amount of the dividend, as should have been expected, and while EMF is recovering nicely, we see it as even more attractive post-dividend. You get the gain without the immediate tax.

Continue reading Top Picks 2007: TheMoneyMan "emerges" overseas with Templeton

Top Picks 2007: TheMoneyMan "emerges" overseas with Templeton originally appeared on BloggingStocks on Sat, 23 Dec 2006 14:30:00 EST. Please see our terms for use of feeds.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Canadian Oil Sands Trust (TSX: COS.UN) is the top conservative buy for 2007 from international investing expert Vivian Lewis. The editor of Global Investing notes, "Canada recently slapped surprise taxes on income trusts. Nevertheless, we think oil sands will also be a good idea even if not exempt from taxes on dividends.

"The main reason is that the dividends are pretty meager. COS pays 2.7%. This is not going to cause a sell-off in the share, even if the dividend is cut in 2011. The trust, however, dropped 10% in what I consider a mistaken reaction to the tax news.

"Meanwhile, Canadian Oil Sands Trust saw third quarter volumes and sales prices rise, which partly offset higher royalties paid, while net fell 27%. The dividend is 30 cents per unit. The stock is up 41%, including dividends, over the past year.

Continue reading Top Picks 2007: Vivian Lewis trusts in tars sands

Top Picks 2007: Vivian Lewis trusts in tars sands originally appeared on BloggingStocks on Sat, 23 Dec 2006 08:30:00 EST. Please see our terms for use of feeds.