Summer Resort Island in Canadian Arctic

CURRENCIES

U.S. Federal Reserve leaves rates unchanged, but Korea and Canada raised their interest rates this week…all the more reason to hold currencies other than the U.S. dollar.
OUR CLIENTS' PORTFOLIOS

We are holding resource and foreign companies for our clients. We hold very few U.S. stocks that are not involved in resource industries.
AS WE HAVE SAID RECENTLY...A GLOBAL MARKET RALLY IS UNDERWAY

Take your pick. Most countries are enjoying a good summer rally with many new highs. Let’s start with the I's, India and Indonesia, then Singapore, Thailand, Philippines, Hong Kong, Korea, and even Japan is flirting with multi-year highs. China has had a good rally but it is still below the highs of May and June.

How about the Americas? Canada, Brazil and Argentine are at new highs. Even the U.S. is in new high territory. Europe also has many markets hitting new highs.

Global liquidity patterns are strong. Central banks are supplying excess liquidity and someday it will all come to an unpleasant end. However, the sun is out today and we will enjoy the good financial weather and keep an eye our for rain clouds. The year has been a good one and we will want to protect our profits. We expect a good market rally through August and then we will watch for a fall correction, so we expect to take a lot of profits in mid to late August, and then recommit after the expected seasonal pullback.
U.S. MARKET

As many of you may know, the last six decades the mid October to mid May period has been the best for U.S. stocks, with May and June usually weak and July-August often providing a summer rally, followed by a decline in September and early October. This pattern is not a guaranteed annual event but it sometimes works out that way.
GLOBAL MARKETS

Other parts of the world have different patterns and are driven by a much different, and currently much better, fundamental backdrop. Globally corporate profits are growing much faster than in the U.S., global economic growth is much faster than in the U.S. and so on.

We expect a continued uptrend in the better global markets punctuated with periods of correction. For the past several years, the wise approach has been to buy during these periods of correction. We plan to continue that approach.

Thanks for listening

For More information on global investing visit http://www.howtoinvestglobally.com and for More information on Guild Investment Management Services visit http://www.guildinvestment.com

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Mr. Guild founded Guild in 1971. Prior to
founding the company he was an analyst at a bank
and a hedge fund. Mr. Guild is a recognized
expert in the areas of international investing
and economics. He has been a writer and speaker
on economic issues for 30 plus years and has been
widely quoted in the world media. He holds a BA
in economics and an MBA with highest honors.