Investment Commentary & Outlook - July 24, 2019

Our growth stocks continue to steadily appreciate and exhibit significant relative strength compared to the S&P 500. In fact, our Large Cap Growth portfolio just posted its strongest outperformance relative to the S&P 500 and is leading all our other growth portfolios year-to-date, which are also having a good year. The portfolio turnover has also slowed, due to the recent relative strength that many of our stocks are exhibiting.

Another way to describe the current market is it is now like a garden hose that is being set on a narrower, more powerful stream. Now that former flagship stocks like Netflix are breaking down from disappointing sales and operating margins, new leaders are emerging and that is why our growth portfolios have performed so well in 2019. The money pouring into the stock market is now chasing fewer stocks and like that garden hose nozzle, the stream (institutional buying pressure) is even more powerful underneath many of our favorite growth stocks!

(Navellier & Associates does not own Netflix in managed accounts and our sub-advised mutual fund. Louis Navellier’s family does own Netflix in personal accounts.)

While the S&P 500 is characterized by 4% forecasted annual sales growth and expectations for virtually no earnings growth due to contracting operating margins, our growth portfolios are characterized by much stronger forecasted annual sales and earnings growth as the . . . . read more

Download the Market Outlook Letter — July 24, 2019