by Louis Navellier
July 29, 2025
Earnings will continue to help or hurt specific stocks. For instance, Google (GOOG) beat the analysts' estimates by 5%, but some analysts were shocked by its higher spending. Nonetheless, I expect Google to meander higher and help shore up the Magnificent 7 stocks, which were dragged down by Tesla (TSLA), which laid another egg last week by missing analysts' earnings estimates for the third quarter in a row.
In addition, the emission credits that Tesla has sold to other automakers are scheduled to expire in the U.S. (while persisting in Europe), so that is posing an additional risk to its bottom line. I will admit that the Tesla Diner, which opened in Santa Monica, is a big hit and is getting great reviews, but until Optimus robots do all the cooking and serving, I suspect that Tesla fans may become disenchanted with the Diner.
I am proud that President Trump re-posted on Truth Social my recent appearance on Fox Business during the June CPI announcement as mounting evidence of why the Fed should resume cutting key interest rates. President Trump's aggressive tariffs threats are actually forcing our trading partners to reduce their trade barriers, so freer worldwide trade is now unfolding. The on-shoring now underway is incredible, which is why I expect the U.S. to achieve 5% annual GDP growth sometime in the upcoming years.
The global interest rate collapse will increasingly put downward pressure on Treasury yields and the Fed, especially as the U.S. dollar rallies and gets its "mojo" back. While President Trump's domestic and international opponents are increasingly trying to humiliate him with endless Jeffery Epstein allegations, some media outlets might beware of going too far: The Wall Street Journal has been hit with a $10-billion defamation lawsuit by President Trump. I feel they would be wise to settle with him, like other media outlets have done. Furthermore, the WSJ was removed from the press pool covering President Trump's upcoming trip to Scotland, but these distractions have no capacity for derailing the U.S. economy.
I'd say that the only thing that can derail the stock market's resurgence are seasonal shenanigans. August is a seasonally weak month, but a dovish FOMC statement may help to squelch this August's negative sentiment. As interest rates collapse, the Fed will be forced to follow other central banks and cut interest rates multiple times, causing a "turbo boost" that will be a stimulus to help our economic nirvana persist.
Real Estate is Hurt by High Interest Rates
Last Wednesday, the National Association of Realtors announced that existing home sales declined 2.7% in June to an annual pace of 3.93-million. Economists were expecting a 0.7% decline, so existing home sales came in much worse than expected. In the past 12-months, existing home sales were unchanged.
The supply of unsold homes is now 1.53-million, representing a 4.7-month supply. Median home prices rose 2% in June to $435,200, but as the supply of homes increases, median home prices are expected to moderate. If you go to Zillow, you will see that home prices are being discounted nationally as inventory builds. However, it is imperative that the Fed cuts key interest rates SOON to stimulate home sales.
Despite a weak housing sector, we are truly in a special environment, an economic renaissance for the U.S. While Asia and much of Europe are in the midst of a demographic collapse, the U.S. is better positioned with household formation and better assimilates immigrants. Furthermore, the U.S. is food and energy independent, plus the U.S. is benefiting from surging exports as well as on-shoring.
The Commerce Department on Friday announced that durable goods orders declined 9.3% in June, due largely to a 51.8% decline in commercial plane orders, but excluding a 22.4% decline in transportation orders, durable goods orders rose 0.2%. Economists were expecting an 11.1% decline in June durable goods orders due to Boeing's woes, so the June durable goods orders were really better than expected.
Changes in Auto Regulations Encourage Lower Tariffs and Onshoring
Among other hidden gems in the "Big Beautiful" tax bill, it eliminated federal penalties for Corporate Average Fuel Economy (CAFE) standards, which means automakers no longer have to comply with mileage mandates. That means Tesla's windfall for selling emission credits is now over in the U.S, which may explain why Elon Musk seems so mad at President Trump. In addition, Stellantis may still have to pay the European Union (EU) a $2.95-billion fine for its emission violations, so it is in the company's best interest to divert as much of its vehicle production to America, to avoid the EU's oppressive rules.
Speaking of the EU, that 27-nation union is facing up to 30% tariffs on August 1st if their negotiations with the U.S. do not start going well. Commerce Secretary Howard Lutnick on CBS's Face the Nation, said, "I am confident we'll get a deal done." Lutnick added, "these key countries will figure out it is better to open their markets to the United States of America than to pay a significant tariff."
In addition, Treasury Secretary Scott Bessent said the EU "got out of the blocks in a slow pace" on trade talks before becoming more engaged. He said that given the "gigantic" trade deficit the U.S. has with the EU, and their level of tariffs, "I would imagine that they would want to negotiate faster." If they do, the Trump Administration's threat of reciprocal tariffs (above 10%) should result in freer trade in the end.
Last Tuesday, President Trump announced trade deals with the Philippines, Indonesia and Japan, with Indonesia and the Philippines now subject to a 19% U.S. tariff. The U.S. products heading to Indonesia generally will not face tariffs. According to a joint statement, Indonesia will drop its tariff rate to zero for 99% of its trade with the U.S. On Truth Social, President Trump said the Philippines will lift all tariffs on imported U.S. goods and added, "It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs."
President Trump also announced that he had made the "largest deal ever" with Japan, including reciprocal tariffs of 15% on the country's exports to the U.S. On Truth Social, President Trump also said that Japan will invest $550-billion into the U.S., adding that the U.S. will "receive 90% of the Profits." Japan's public broadcaster NHK reported that auto tariffs will be lowered to 15% from the current 25%. That's a big concession, since auto exports to the U.S. accounted for 28.3% of all 2024 Japan's exports to the U.S.
In conclusion, it is now clear that President Trump is sticking to his August 1st tariff deadline and that he is in a "let's make a deal" mode. The EU is expected to be difficult, since the EU represents 27-nations, all with their own trade barriers, so they face 30% tariffs on August 1st, if they cannot make a deal. I suspect that Germany will tell the EU what to do and possibly pledge to invest more in the U.S. like Japan did, in exchange for a lower tariff. France remains defiant and remains a bottleneck in the tariff negotiations. Italy has a great relationship with President Trump, thanks to Prime Minister Giorgia Meloni, so I also suspect that Italy may get a special deal, so the EU negotiations will be fascinating in the upcoming days!
I should add that after VW Group announced that the Trump tariffs have cost them $1.5-billion, VW is offering to move its Audi production to the U.S. in exchange for concessions on tariffs. VW Group Chief Executive, Oliver Blume, on Friday said that a deal with the Trump administration could follow an EU agreement, centered on factory and other investments that the automaker could make in the U.S.
Blume said, "What we can offer is clear to the U.S. government. It's a scalable package, which in the end of course will depend on what we get in return." VW has already invested $2-billion in a new Scout Motors plant in South Carolina. VW also has a manufacturing plant in Chattanooga and is committed to invest $5-billion in U.S.-based Rivian. This "on-shoring" is real and should help boost GDP growth!
Navellier & Associates; own Alphabet Inc. Class A & C (GOOG), in a few managed accounts. A few accounts own Tesla (TSLA), per client request only in managed accounts. We do not own Volkswagen (VWAGY), Stellantis (STLA) or Rivian (RIVN), in managed accounts. Louis Navellier and his family own Alphabet Inc. Class A & C (GOOG), via a Navellier managed account. He does not own Tesla (TSLA), Volkswagen (VWAGY), Stellantis (STLA) or Rivian (RIVN) personally.
All content above represents the opinion of Louis Navellier of Navellier & Associates, Inc.
Also In This Issue
A Look Ahead by Louis Navellier
Beware Any "Seasonal Shenanigans" in August
Income Mail by Bryan Perry
It's Time to Seek Energy Efficient Income & Growth
Growth Mail by Gary Alexander
How August Went from "First to Worst" Among Market Months
Global Mail by Ivan Martchev
The Longest Zig of 2025
Sector Spotlight by Jason Bodner
Is It Time to Trim Some Profits – Before the Market Blinks?
View Full Archive
Read Past Issues Here
Louis Navellier
CHIEF INVESTMENT OFFICER
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 www.adviserinfo.sec.gov or by requesting a copy by emailing info@navellier.com. 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.