by Louis Navellier

March 19, 2024

Last Friday, The New York Times published an excellent article entitled “A New Surge in Power Use Is Threatening U.S. Climate Goals.”  This article blamed cloud computing centers and electric vehicles for a new wave of surging demand for electricity. I’ve long argued that the easiest way to meet rising demand for electricity is with natural gas peak-power plants that come online during peak demand. Since natural gas burns much cleaner than coal, there is nothing to stop the expansion of natural gas peak-power plants, since green energy is not as reliable. Furthermore, since natural gas is much cheaper in America than in other countries that rely on LNG, the U.S. is at a massive competitive advantage to other countries that face much higher electricity rates. Finally, since the U.S. electric grid is limited, natural gas peak-power plants can be set up quickly to help meet local electricity demand and prevent blackouts.

The way I see it, the U.S. power grid faces three problems. First, when transmission lines fall over from wind or storms, they can create fires, which happened to PG&E in Napa, to Hawaiian Electric Industries in Maui, and to Xcel Energy in Texas. Second, power grids can undergo voltage swings that can exacerbate fires. For example, Hawaiian Electric Industries detected 122 grid faults between midnight and the morning before the Maui fires commenced. Third, the U.S. power grid is now struggling to cope with peak load demand, especially in areas where cloud computing centers are taking an increasingly large amount of electricity when using AI and the faster servers that Super Micro Computer supplies.

For example, in Reno, where I have a home in the hills above town, there are large generators placed every mile or so in my neighborhood for meeting peak electricity demand in summer months, since Reno does not produce enough electricity for peak-load demand for air-conditioning in the summer months, due to an explosion in cloud computing facilities, as well as an influx of new residents from California.

I am not sure why NV Energy has not installed new natural gas peak-power plants, which would be an easy solution. Instead, NV Energy is striving to generate 50% of its electricity from renewable energy. (It currently generates 35.8% of its electricity from largely geothermal and solar facilities). Since renewable facilities are not as reliable as natural gas, NV Energy is apparently relying on these generators randomly placed in our suburban neighborhoods for peak load demand.

Another problem with the electric grid in America is that we have very few direct current (DC) grids to transmit electricity over long distances. Most of the transmission lines in the U.S. are alternating current (AC), which lose electricity (indicated by the “crackling” noise in the lines) the farther it is transported. As a result, when electricity is transported over a long distance, a DC grid is necessary, which California and New York use for hydroelectric transmission from the Pacific Northwest and Canada, respectively.

If the U.S. were serious about green energy solutions, the best solution would be to construct a DC grid from the desert Southwest – where solar energy can be generated more efficiently – to transmit power over vast distances to Southern California, Salt Lake City and other large Western metropolitan areas.

As electricity demand rises from AI fueling cloud computing and the demand from more electric vehicles, the U.S. power grid is now at the mercy of your local utilities. In Florida, FPL does not want homeowners to install their own solar panels. Instead, FPL wants you to select solar energy and then let the state build more solar farms to meet your energy needs. But the longer the transmission, the more the risks. The state needs to bury the power lines – to reduce fire risk – or install more DC grids.

That’s my solution to the electrical demand crisis. I’ll leave it up to the politicians to make it happen.

In other energy news, the American Petroleum Institute (API) announced on Tuesday that U.S. crude oil inventories declined by 5.5 million barrels in the latest week. API also reported that gasoline inventories declined by 3.8 million-barrels, and distillate (e.g., diesel, heating oil & jet fuel) inventories declined by 1.2 million-barrels. The Energy Information Administration (EIA) reported on Wednesday that U.S. crude oil inventories declined by 1.5 million barrels in the latest week, the first weekly decline in the past seven weeks. Although prices at the pump are rising, this is the normal seasonal surge that happens every spring.

Europe faces much larger energy challenges and higher prices, generating a rolling recession there. Industrial production in the European Union (EU) declined by 3.2% in January, which is raising fears of a recession spreading to many more EU nations. Capital goods output plunged 14.5%, raising deflation fears as demand drops. Ireland had its biggest drop in output with a whopping 29% plunge as EU policies threaten the country’s massive dairy industry with a mandate to kill 600,000 dairy cows to cut carbon dioxide emissions. Farm protests against the EU’s green agenda are clearly hurting the EU’s GDP growth.

U.S. Inflation Rates Ratchet Back Up, Foiling the Fed’s Rate Cut Plans

Inflation started rising again in early 2024. Last Tuesday, the Labor Department announced that the Consumer Price Index (CPI) rose 0.4% in February and +3.2% in the past 12 months. The core CPI, excluding food and energy, rose 0.4% in February and 3.8% in the past 12 months. The main culprit is energy prices, which rose 2.3% in February (with gasoline prices rising a whopping 3.6%). The only good news is that owners’ equivalent rent (shelter costs) rose at a slower pace, +0.4% in February, down from +0.6% in January, but gasoline and shelter costs still accounted for 60% of the February CPI increase.

Then, on Thursday, the Labor Department announced that the Producer Price Index (PPI) rose by 0.6% in February and 1.6% in the past 12 months. The core PPI, excluding food, energy, and trade margins, rose 0.4% in February and 2.8% in the past 12 months. Wholesale food and energy prices rose 1% and 4.4%, respectively. Most shockingly, wholesale goods prices surged 1.2% last month after declining in the past four months. This was a disastrous report, so the Fed will likely not cut interest rates until June or later.

Another dismal report came from the Commerce Department on Thursday, when they announced that retail sales rose just 0.6% in February. Excluding transportation, retail sales rose 0.3%. Furthermore, the January decline was revised to a 1.1% decline (down from the 0.8% decline, initially reported), yielding a net decline in the first two months of 2024. The strongest categories in February were vehicles (up 1.6%) and electronics & appliances (up 1.5%). Gas station sales rose 0.9%, but only due to higher prices at the pump. Overall, this retail sales report is indicative of lackluster growth. In the wake of this report, the Atlanta Fed lowered its first-quarter GDP estimate to a 2.3% pace, down from 2.5% previously estimated.

Spending on the Ukraine war is still controversial, as Ukraine is bracing for a Russia spring offensive, so big backhoes are digging deep trenches to slow any Russian advance. French President Macron is forcing NATO to consider placing troops in Ukraine to stop any Russian advance. The Polish Foreign Minister, Ralph Sikorski, said placing NATO forces was “not unthinkable” and added, “In my opinion, it has a good intention, that is, for the president of Russia to wonder what our next move will be.”  Spain and Slovakia are not in favor of using NATO troops, and Germany is also reluctant. Britain has traditionally been the most hawkish on Ukraine, but President Macron is now the new NATO hawk, and the French legislature is supposed to debate a proposed 10-year defense and security pact between France and Ukraine.

As if we don’t have enough war zones to worry about, the anarchy in Haiti caused Prime Minister Ariel Henry to resign last week as roaming gangs continue to create chaos. Henry left Haiti on February 25th and has not been able to return after gangs attacked government facilities and closed the main airport. The gangs freed approximately 5,000 inmates from a prison, so chaos prevails. The U.S. sent in Marines to evacuate key personnel from the U.S. embassy. The U.S. has provided $5.5 billion in aid to Haiti since 2010, but Secretary of State Anthony Blinken said the U.S. will not intervene in Haiti, at least not yet…

Navellier & Associates owns Super Micro Computer, Inc. (SMCI), in managed accounts. We do not own PG&E, Hawaiian Electric Industries, Xcel Energy, NV Power, or Florida Power & Light. Louis Navellier and his family own Super Micro Computer, Inc. (SMCI), via a Navellier managed account, he does not personally own PG&E, Hawaiian Electric Industries, Xcel Energy, NV Power, or Florida Power & Light.

All content above represents the opinion of Louis Navellier of Navellier & Associates, Inc.

Please see important disclosures below.

About The Author

Louis Navellier

Louis Navellier is Founder, Chairman of the Board, Chief Investment Officer and Chief Compliance Officer of Navellier & Associates, Inc., located in Reno, Nevada. With decades of experience translating what had been purely academic techniques into real market applications, he believes that disciplined, quantitative analysis can select stocks that will significantly outperform the overall market. All content in this “A Look Ahead” section of Market Mail represents the opinion of Louis Navellier of Navellier & Associates, Inc.

Important Disclosures:

Although information in these reports has been obtained from and is based upon sources that Navellier believes to be reliable, Navellier does not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute Navellier’s judgment as of the date the report was created and are subject to change without notice. These reports are for informational purposes only and are not a solicitation for the purchase or sale of a security. Any decision to purchase securities mentioned in these reports must take into account existing public information on such securities or any registered prospectus.To the extent permitted by law, neither Navellier & Associates, Inc., nor any of its affiliates, agents, or service providers assumes any liability or responsibility nor owes any duty of care for any consequences of any person acting or refraining to act in reliance on the information contained in this communication or for any decision based on it.

Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any securities recommendations made by Navellier. in the future will be profitable or equal the performance of securities made in this report. Dividend payments are not guaranteed. The amount of a dividend payment, if any, can vary over time and issuers may reduce dividends paid on securities in the event of a recession or adverse event affecting a specific industry or issuer.

None of the stock information, data, and company information presented herein constitutes a recommendation by Navellier or a solicitation to buy or sell any securities. Any specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The holdings identified do not represent all of the securities purchased, sold, or recommended for advisory clients and the reader should not assume that investments in the securities identified and discussed were or will be profitable.

Information presented is general information that does not take into account your individual circumstances, financial situation, or needs, nor does it present a personalized recommendation to you. Individual stocks presented may not be suitable for every investor. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. Investment in fixed income securities has the potential for the investment return and principal value of an investment to fluctuate so that an investor’s holdings, when redeemed, may be worth less than their original cost.

One cannot invest directly in an index. Index is unmanaged and index performance does not reflect deduction of fees, expenses, or taxes. Presentation of Index data does not reflect a belief by Navellier that any stock index constitutes an investment alternative to any Navellier equity strategy or is necessarily comparable to such strategies. Among the most important differences between the Indices and Navellier strategies are that the Navellier equity strategies may (1) incur material management fees, (2) concentrate its investments in relatively few stocks, industries, or sectors, (3) have significantly greater trading activity and related costs, and (4) be significantly more or less volatile than the Indices.

ETF Risk: We may invest in exchange traded funds (“ETFs”) and some of our investment strategies are generally fully invested in ETFs. Like traditional mutual funds, ETFs charge asset-based fees, but they generally do not charge initial sales charges or redemption fees and investors typically pay only customary brokerage fees to buy and sell ETF shares. The fees and costs charged by ETFs held in client accounts will not be deducted from the compensation the client pays Navellier. ETF prices can fluctuate up or down, and a client account could lose money investing in an ETF if the prices of the securities owned by the ETF go down. ETFs are subject to additional risks:

  • ETF shares may trade above or below their net asset value;
  • An active trading market for an ETF’s shares may not develop or be maintained;
  • The value of an ETF may be more volatile than the underlying portfolio of securities the ETF is designed to track;
  • The cost of owning shares of the ETF may exceed those a client would incur by directly investing in the underlying securities; and
  • Trading of an ETF’s shares may be halted if the listing exchange’s officials deem it appropriate, the shares are delisted from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally.

Grader Disclosures: Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. The sample portfolio and any accompanying charts are for informational purposes only and are not to be construed as a solicitation to buy or sell any financial instrument and should not be relied upon as the sole factor in an investment making decision. As a matter of normal and important disclosures to you, as a potential investor, please consider the following: The performance presented is not based on any actual securities trading, portfolio, or accounts, and the reported performance of the A, B, C, D, and F portfolios (collectively the “model portfolios”) should be considered mere “paper” or pro forma performance results based on Navellier’s research.

Investors evaluating any of Navellier & Associates, Inc.’s, (or its affiliates’) Investment Products must not use any information presented here, including the performance figures of the model portfolios, in their evaluation of any Navellier Investment Products. Navellier Investment Products include the firm’s mutual funds and managed accounts. The model portfolios, charts, and other information presented do not represent actual funded trades and are not actual funded portfolios. There are material differences between Navellier Investment Products’ portfolios and the model portfolios, research, and performance figures presented here. The model portfolios and the research results (1) may contain stocks or ETFs that are illiquid and difficult to trade; (2) may contain stock or ETF holdings materially different from actual funded Navellier Investment Product portfolios; (3) include the reinvestment of all dividends and other earnings, estimated trading costs, commissions, or management fees; and, (4) may not reflect prices obtained in an actual funded Navellier Investment Product portfolio. For these and other reasons, the reported performances of model portfolios do not reflect the performance results of Navellier’s actually funded and traded Investment Products. In most cases, Navellier’s Investment Products have materially lower performance results than the performances of the model portfolios presented.

This report contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are “forward-looking statements” within the meaning of The U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by such forward-looking terminology as “expect,” “estimate,” “plan,” “intend,” “believe,” “anticipate,” “may,” “will,” “should,” “could,” “continue,” “project,” or similar statements or variations of such terms. Our forward-looking statements are based on a series of expectations, assumptions, and projections, are not guarantees of future results or performance, and involve substantial risks and uncertainty as described in Form ADV Part 2A of our filing with the Securities and Exchange Commission (SEC), which is available at or by requesting a copy by emailing All of our forward-looking statements are as of the date of this report only. We can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially. You are urged to carefully consider all such factors.

FEDERAL TAX ADVICE DISCLAIMER: As required by U.S. Treasury Regulations, you are informed that, to the extent this presentation includes any federal tax advice, the presentation is not written by Navellier to be used, and cannot be used, for the purpose of avoiding federal tax penalties. Navellier does not advise on any income tax requirements or issues. Use of any information presented by Navellier is for general information only and does not represent tax advice either express or implied. You are encouraged to seek professional tax advice for income tax questions and assistance.

IMPORTANT NEWSLETTER DISCLOSURE:The hypothetical performance results for investment newsletters that are authored or edited by Louis Navellier, including Louis Navellier’s Growth Investor, Louis Navellier’s Breakthrough Stocks, Louis Navellier’s Accelerated Profits, and Louis Navellier’s Platinum Club, are not based on any actual securities trading, portfolio, or accounts, and the newsletters’ reported hypothetical performances should be considered mere “paper” or proforma hypothetical performance results and are not actual performance of real world trades.  Navellier & Associates, Inc. does not have any relation to or affiliation with the owner of these newsletters. There are material differences between Navellier Investment Products’ portfolios and the InvestorPlace Media, LLC newsletter portfolios authored by Louis Navellier. The InvestorPlace Media, LLC newsletters contain hypothetical performance that do not include transaction costs, advisory fees, or other fees a client might incur if actual investments and trades were being made by an investor. As a result, newsletter performance should not be used to evaluate Navellier Investment services which are separate and different from the newsletters. The owner of the newsletters is InvestorPlace Media, LLC and any questions concerning the newsletters, including any newsletter advertising or hypothetical Newsletter performance claims, (which are calculated solely by Investor Place Media and not Navellier) should be referred to InvestorPlace Media, LLC at (800) 718-8289.

Please note that Navellier & Associates and the Navellier Private Client Group are managed completely independent of the newsletters owned and published by InvestorPlace Media, LLC and written and edited by Louis Navellier, and investment performance of the newsletters should in no way be considered indicative of potential future investment performance for any Navellier & Associates separately managed account portfolio. Potential investors should consult with their financial advisor before investing in any Navellier Investment Product.

Navellier claims compliance with Global Investment Performance Standards (GIPS). To receive a complete list and descriptions of Navellier’s composites and/or a presentation that adheres to the GIPS standards, please contact Navellier or click here. It should not be assumed that any securities recommendations made by Navellier & Associates, Inc. in the future will be profitable or equal the performance of securities made in this report.

FactSet Disclosure: Navellier does not independently calculate the statistical information included in the attached report. The calculation and the information are provided by FactSet, a company not related to Navellier. Although information contained in the report has been obtained from FactSet and is based on sources Navellier believes to be reliable, Navellier does not guarantee its accuracy, and it may be incomplete or condensed. The report and the related FactSet sourced information are provided on an “as is” basis. The user assumes the entire risk of any use made of this information. Investors should consider the report as only a single factor in making their investment decision. The report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of a security. FactSet sourced information is the exclusive property of FactSet. Without prior written permission of FactSet, this information may not be reproduced, disseminated or used to create any financial products. All indices are unmanaged and performance of the indices include reinvestment of dividends and interest income, unless otherwise noted, are not illustrative of any particular investment and an investment cannot be made in any index. Past performance is no guarantee of future results.