A Global Selling Panic

A Global Selling Panic Was Launched by an Emerging Markets Collapse

by Louis Navellier

August 25, 2015

*All content in the Marketmail Introduction is the opinion of Louis Navellier of Navellier & Associates, Inc.*

Yuans ImageLate last week (continuing into Monday’s opening selloff), the U.S. stock market was swept up in a worldwide selling panic fueled by a Financial Times report (entitled “Surge in Emerging Market Capital Outflows Hits Growth and Currencies,” August 18, 2015) that $1 trillion has fled the emerging market funds, fueled by an ongoing emerging markets currency crisis. There is no doubt that fears of another Asian financial crisis are haunting many investors.

Despite all this chaos, something wonderful happened last Friday.  The S&P 500 fell so far that the annualized dividend yield on the S&P 500 hit 2.2%, while the 10-year Treasury bond yield closed at 2.05%.  Whenever the S&P 500’s dividend yield crosses the 10-year Treasury bond yield, it has marked a big inflection point in the stock market.  Previous to 2015, according to Bespoke Investment Group (in The Bespoke Report for January 16, 2015), in the three times when the S&P’s dividend yield exceeded the 10-year Treasury bond yield (in 1962, 2008, and 2011), the stock market rallied by an average 33.4% over the next 12 months.  (The fact that dividends are taxed at a maximum federal rate of 23.8% while Treasury bond interest is taxed at a maximum of 43.4% also tends to make dividends more attractive.)

During my Thursday morning (August 20, 2015) CNBC Squawk Box appearance, I stated that “we are not going to have a big correction” because of the strongest pace in stock buy-backs in the past four years.  Even though I have egg on my face after the market’s subsequent collapse, the fact of the matter is that there is nowhere else for worldwide investors to go other than to our strong currency (U.S. dollar) and our attractive market yields.

Beach ImageThe biggest problem that we often have in late August is that many Wall Street pros are on extended vacations before their kids have to go back to school.  Europe is also on vacation, so we are experiencing thin market conditions, in which market moves are exaggerated.   By contrast, September is a month marked by quarter-ending window dressing, where there is historically a big flight to quality, so I expect the crème de la crème to re-emerge as the market leaders.

Personally, I think the bull market is still intact, so I will go bargain hunting this week. Even though I am keenly aware that the stock market will likely have to retest its recent lows, I do not care, since these bargain prices are rarely available.  Furthermore, I have confidence that stocks with superior sales and earnings relative to the S&P 500 will re-emerge as market leaders in the upcoming weeks, especially in September’s quarter-end window dressing season.  Although there was nowhere to hide during Friday’s capitulation, bad stocks tend to fall like rocks, while good stocks tend to fall like fresh tennis balls. The best stocks could bounce back so strongly that they may not have to retest their lows, so I will personally be a buyer, buying the best stocks at bargain prices – prices that we may not see for the rest of this year.

In This Issue

In Income Mail, Ivan Martchev can take some credit for predicting this market swoon in advance, through his “high yield spread” indicator, covered here over the last year.  He will also comment on Greece from his nearby vista in Bulgaria!  In Growth Mail, Gary Alexander will compare this downdraft to similar drops in 2011 and 2012, along with chances for a hopeful rally after the Jackson Hole meetings later this week. Then I will return to examine low inflation rates as another reason why the Fed should stand pat.

Income Mail:
This Swan is White!
by Ivan Martchev
Tsipras Resigns: Good Riddance

Growth Mail:
Will Jackson Hole Rescue the Market – Again?
by Gary Alexander
Will Stanley Fischer Ride to the Rescue This Time?
Recent Market Moves Hatched in Jackson Hole

Stat of the Week:
Non-Existent Inflation Could Tie the Fed’s Hands
by Louis Navellier
The Fed was “Divided” last Month, but they may “Unite” Soon

Income Mail:

*All content in Income Mail is the opinion of Navellier and Associates and Ivan Martchev*

This Swan is White!

by Ivan Martchev

If anyone were to tell you that the collapse in the U.S. equity markets last week was a Black Swan event (i.e., not easy to see), tell them it was telegraphed in the credit markets (and Income Mail) ahead of time.

Markets tend to release like coils. They grind and wind in a trading range and then – when enough negative tension has built up – they fall until they find support. The price discovery process is always ongoing and can deviate from the long-term fundamentals for considerable periods of time, but prices always gravitate towards the fundamentals.

There had been a lot of pressure building up in the credit markets this summer. The BofA Merrill Lynch US High Yield B Option-Adjusted Spread that I referred to last week again correctly predicted that there would be turbulence hitting stocks.

Bank of America Merrill Lynch High Yield Bonds Chart

Graphs are for illustrative and discussion purposes only. Please read important disclosures at the end of this commentary.

What struck me as peculiar this time around is how much selling there had been in lower quality bonds before stocks noticed.  The spread widening between junk bonds and Treasuries was dramatic, yet no corresponding move had occurred on the equity side. This, I believe, is what they refer to as “the fat pitch” in baseball terminology.

Credit spreads are not infallible indicators, although I do think they are pretty good overall indicators. I had tried erroneously in the past to read too much into the small upturns and downturns in credit spreads as lead indicators to equities, and I have discovered that there can be “noise” in their interpretation. But they typically lead the stock market even though not by the same intervals of time when it comes to different waves or phases of credit spread expansion.

This latest credit spread widening has been ongoing for a couple of months so there was little chance for a head fake -- the worse the credit, the bigger the widening. If one looks at CCC bonds – which are the “junkier” junk compared to single “Bs” – they had long taken out their December highs on both a relative (spread) basis and on an absolute (yield) basis, while single Bs are just now taking out their December 2014 highs. Surely this is not as bad, or as fast, as the spread widening we saw during the eurozone crisis when the S&P 500 fell 19% over the summer in 2011.

Bank of America Merrill Lynch High Yield Bonds CCC Chart

Graphs are for illustrative and discussion purposes only. Please read important disclosures at the end of this commentary.

Be that as it may, the reasons for the sell-off in riskier bonds are numerous. Weakness in commodity prices, courtesy of the Chinese economic downturn, is a major culprit. A lot of new capacity in hard commodities and energy has been financed with junk bonds and with disappearing cash flows. Courtesy of the CRB Commodity Index hitting 190 last week, junk bonds are under pressure. As a reminder, the 180-200 area of the CRB has been a support level since the mid-1970s, with only one tiny stab down to 175.9.

Thin Red Line Trigger for State Buying Chart

Graphs are for illustrative and discussion purposes only. Please read important disclosures at the end of this commentary.

I think that if the Chinese situation turns out to be a bad recession or a real depression, given their GDP growth financed by ever rising degrees of debt, this CRB support may not hold. This means much lower junk bond prices and a global deflationary situation that calls for credit spreads to keep expanding and for the 10-year Treasury yield to decline below 1%.

I will leave China alone this week, with only the short statement that the Shanghai Composite undercut 3500 on Friday intraday to close marginally above that key level that has emerged as an area where the Chinese Plunge Protection Team has been noted to try to buy and support the market in the past several weeks. I think 3500 may not hold and that ultimately the index may find support between 1000 and 2000 when the biggest margin binge that the world has ever seen in its recorded financial history unwinds as 20% of the free float in the Chinese equity market was borrowed via margin leverage at the June high (Source: Businessstandard.com, July 8, 2015, “Why China’s Stock Market Meltdown Should Be A Cause for Global Worry”)

Tsipras Resigns: Good Riddance

News that Greek Prime Minister Alexis Tsipras has resigned reached me when I was high in the Rhodopi Mountains in southern Bulgaria, far away from the Internet and with spotty cellphone coverage. I actually found out on Friday, a day after the event, and was rather relieved that the most incompetent government in the history of post-WW2 Greece has now folded, with elections to be held in September.

The Tsipras government had taken a somewhat stable situation at the end of 2014 and upon coming into power in January 2015 had engineered a gigantic bank run that now calls for massive recapitalization of Greek banks, without which the Greek economy will have serious troubles functioning. Tsipras' election promise – that he would help bring a better deal with the Greek creditors – was empty and one could argue that the deal he got is worse than what he would have gotten had he not called for the absurd free-gyros-for-all referendum in the middle of the crucial bailout talks with Greece's creditors.

National Bank of Greece - New York Stock Exchange Chart

Graphs are for illustrative and discussion purposes only. Please read important disclosures at the end of this commentary.

The ADR of the National Bank of Greece (NBG) went down after the bank holiday ended with the bailout voted in. If the government was truly successful, one would think NBG’s stock would have rallied —meaning that the market anticipated massive dilution for current shareholders of Greek banks, similar to what Citigroup (C) and AIG (AIG) investors got in 2009. But NBG approached its low and Piraeus Bank went on to make further new all-time lows with Piraeus stock reaching 9 EUR cents last week. (Ivan Martchev does not currently own a position in NBG, C, AIG, or TPEIR. Navellier & Associates does not currently own a position in NBG, C, or TPEIR in client portfolios. Navellier & Associates does currently own a position in AIG in some client portfolios.)

In the end, the Greeks brought this on themselves. To elect a partially-communist organization like Syriza based on promises full of nothing other than populist demagoguery is rather unfortunate. Now they will have the opportunity to vote Tsipras down in September and I am watching with great interest if they will do so or if they will vote him in again, which would increase the chances of Greece leaving the euro and ultimately the EU. The most significant accomplishment of the government of Alexis Tsipras is the reformulation of the recipe for the popular Greek dish souvlaki so as to include Gruyere instead of feta, which had an ongoing shortage in the country because of its ruinous policies.

Euro versus Dollar Exchange Rate - Daily OHLC Chart

Graphs are for illustrative and discussion purposes only. Please read important disclosures at the end of this commentary.

As this chart shows, the euro (black line) has rebounded, but not because Greece is “fixed” but because of the rout in commodities that is wreaking havoc in many emerging markets and is also causing more investors to think that any Fed rate hikes may get delayed until December or into 2016. You can see that as the December Fed funds futures (ZQZ15, in the green line, above) gets close to expiration right in the period where the Fed is considering a rate hike, the euro has uncovered a peculiar correlation with Fed funds futures, where falling chances of a Fed rate hike, or a rallying ZQZ15 contract (green line), mean a rallying euro, and vice versa.

Right now the market is betting on a lower chance of a Fed rate hike in September as emerging markets’ slumping currencies mean the chances of sovereign and corporate defaults are increasing as it makes it very difficult to then purchase the dollars necessary to service their U.S.-denominated debts.

I have noted here repeatedly that the U.S.-dollar denominated borrowing since 2008 has increased total leverage from $6 trillion to $9 trillion among corporate and sovereign borrowers. In effect, this is a massive synthetic short position against the dollar as those debts have to be returned with more expensive dollars just as the dollar has begun to rally, resulting in a massive short squeeze. Hiking U.S. interest rates in that environment is like adding fuel to the fire, in my opinion. Let's hope the Fed sees it that way, too.

Growth Mail:

*All content in Growth Mail is the opinion of Navellier and Associates and Gary Alexander*

Will Jackson Hole Rescue the Market – Again?

by Gary Alexander

“…if economic performance turns out to be disappointing and progress toward our goals proceeds more slowly than we expect, then the future path of interest rates likely would be more accommodative than we currently anticipate.”

– Fed chair Janet Yellen, speaking at Jackson Hole, Wyoming, August 22, 2014

Tetons ImageMy opening quotation hearkens back to the good old days of 2014, when the Fed chair actually spoke at Jackson Hole! In September, 2014 – as Ivan’s last chart, above, shows – the Fed funds futures market was then expecting three 25-basis-point rate increases by the end of 2016.  (You get that number by the ZQZ15 price of 99.25 from 100 to get 0.75, or a Fed funds rate of 0.75% by year-end 2015).  As it turns out, Ms. Yellen’s warning was right on target, as the Fed has not raised short term rates over the last year.

As if we need yet another reason for the Fed to delay any rate increases, the U.S. stock market tanked last week.  We finally had a breakout below the Great American Trading Range.  For 138 straight trading days since early February, the S&P 500 had closed within a narrow (90-point) range between 2,040.2 and 2,130.8. Then, last Thursday it fell 2.1% to 2,035.73, just below the support, and then collapsed over 3% on Friday to reach 1970.  Still, that’s only a 7.5% drop from the all-time high of 2,130.82, set on May 21.

Compared with August of 2011, this is a small tremor.  As I showed here on August 4 2015, we suffered five daily Dow declines or recoveries of 420 points or more in six trading days (August 4-11, 2011) and a 16.5% correction in the S&P 500 from July 22, 2011 to August 19, 2011.  There have been NO 10% corrections since then, with the closest call (at 9.94%) coming over three years ago, in the spring of 2012:

 Source: Yahoo! Finance
  Recent S&P 500 High (Date)   Correction low (date)  Decline  Duration
1419.04 (April 2, 2012) 1278.04 (June 1, 2012) -9.94% 60 days
2007.71 (Sept. 5, 2014) 1862.49 (Oct. 15, 2014) -7.23% 40 days
2130.82 (May 21, 2015)  1970.89 (Aug. 21, 2015)  -7.51%  92 days (so far) 

 

As of last Friday, the Dow Jones Industrials are 9.99% below their May 21 peak, but that is a narrower index, infected with a lot of large multinational and commodity-related stocks hurt by the strong dollar, so the S&P 500 (as flawed as it is) is a better proxy for blue chip U.S. stocks than the Dow Industrials.

What happened in April and June of 2012 to bring us to the brink of a 10% market decline?  As I look back at our MarketMail headlines during those weeks, I’m struck by the gloomy pessimism dominating the air waves back then – in an election year, no less.  Our May 21, 2012 headline was “Stocks Fell 4.3% on ‘Fatigue and Uncertainty’ Last Week.” Louis Navellier’s opening remark was, “The ‘sell in May and go away’ crowd is standing tall today.  The S&P is down 7.3% in May, including a 4.3% drop last week.  Some stocks exhibited relative strength, but even the most resilient stocks were hit hard on Thursday, as fund managers were forced to ‘throw out the baby with the bathwater’ to meet fund redemptions…”

Sound familiar?  August of 2015 has seen the S&P 500 fall 6.32% so far in the month, most of it coming last Thursday and Friday – with both good and bad stocks being thrown out “with the bath water.”  In that week of May 21, 2012, the biggest scare story in that week’s MarketMail was “The Escalating Greek Tragedy May Soon Split the Euro-Zone.” Once again, that sounds like a repeat of this week’s headlines.

Will Stanley Fischer Ride to the Rescue This Time?

Fed chair Janet Yellen will not be appearing at this week’s Jackson Hole meeting – which begins on Thursday, August 27, at 6:00 pm Mountain time – but the doves will be firmly in control in the person of Stanley Fischer, vice-chairman of the Fed and the man who seems most outspoken about Fed policy, saying recently (on August 10 on Bloomberg TV) that low inflation remains a big concern. He said he doesn’t see a Fed move “before we see inflation as well as employment returning to more normal levels.”

This year’s Jackson Hole conference theme (“Inflation Dynamics and Monetary Policy”) will play right into Fischer’s biggest concerns.  In the 12 months ending July 31, according to Labor Department data released on August 14, the Producer Price Index was down 0.8%, so we’re facing outright deflation, not inflation. We haven’t seen a lot of inflation in the last year and the price of a barrel of crude oil just fell under $40.

Maybe the best news coming out of this week’s Jackson Hole meeting will be confirmation that there will be no interest rate increase in September.  Maybe Stan Fischer’s job is to make that decision crystal clear.

Federal Reserve Building ImageMy main point is “Don’t Fight the Fed.”  By keeping short-term rates super-low, the Fed has encouraged businesses to borrow money at low rates to buy back more of their shares.  Low rates also make home mortgages and vehicle loans more affordable, reviving the housing and auto markets. Low rates also put a damper on the debt service portion of the federal budget – even though low rates punish income investors.

Since the financial crisis of 2008, most central bankers have bent over backward to be accommodating, fighting the remote possibility of a return of the deflationary 1930s.  They have sort-of-succeeded, so far.  Global growth is slow but steady, and inflation has not yet risen, despite all of this coordinated easing.  If the Fed delays interest rate increases, that’s good news for corporate America… and for the stock market.

Recent Market Moves Hatched in Jackson Hole

Jackson Hole has become an annual rallying point for the stock market over the last few years. Since 2009, the market has responded favorably whenever some real news comes out of Jackson Hole.  From 2010 to 2013, Federal Reserve Chairman Ben Bernanke made monetary history at Jackson Hole.  He often announced (or paved the way for) a major Fed policy change at this time.  Here’s a brief summary:

  • The 2010 Jackson Hole conference was held August 26-28.  In his August 27 talk, Mr. Bernanke said that the pace of economic growth had been “less vigorous” than the Fed was expecting and the pace of the U.S. job growth was “painfully” slow.  He also acknowledged that the Fed was surprised by the “sharp deterioration” in the U.S. trade balance. His solution was to revive the Fed’s late-2008 “quantitative easing” (QE) scheme. The market loved QE2: The S&P rose from 1040 on the day of Bernanke’s Jackson Hole talk to 1363.6 the following April – up 31%.
  • The 2011 Jackson Hole conference was held August 25-27, during an especially volatile month in market history.  At Jackson Hole, Chairman Bernanke laid out the groundwork for another new Fed monetary strategy called “Operation Twist.”  The detailed plan was not officially announced until September 21, but over the next month or so, various Fed governors hit the road to explain and defend their $400 billion operation to artificially flatten the yield curve. The stock market loved Operation Twist.  The S&P 500 rose over 26% from August 2011 to April of 2012.
  • The 2012 Jackson Hole conference, held August 30 to September 1, laid the groundwork for QE3, which was officially launched on September 13. Bernanke’s Jackson Hole remarks were more frank than usual. First, he said that the stagnant job market was a “grave concern” to the Fed.  He also called current economic growth “far from satisfactory” and “tepid.”  Because of this slow growth, Bernanke said that the Fed will “provide additional policy accommodation as needed.”  This was a broad hint that more easing (dubbed QE3) would soon follow.  The market seemed to love QE3, as the S&P 500 rose by over 17% from its August lows to April of 2013.
  • The 2013 Jackson Hole conference was held August 22-24. By then, Chairman Bernanke was a lame duck, so he let his replacement (Janet Yellen) speak in his place.  Strangely, she did not say much, except as part of a panel.  Since the skies were smoky around Jackson Hole, due to all of the fires in Idaho, the inside joke was that Jackson Hole’s skies reflected the foggy future of the Fed, especially since Bernanke’s hints of “tapering” (uttered in May) were spooking the markets. In the end, tapering failed to faze the market, with the S&P 500 rising 16% by April of 2014.
  • Last August (2014), as noted above, Ms. Yellen tried to reassure investors that the Fed might not raise rates as soon as they expect and the market managed to eke out an 11.6% gain by May 2015.

In summary, we’ve seen a sharp S&P 500 recovery after the last few years of Jackson Hole meetings:

Post-Jackson-Hole Market Rallies, 2009-15
 Source: Yahoo! Finance, using the S&P 500 closing price
  Year   August S&P 500 Low  Next Spring’s High   8-9-Month Gain 
 2009-10  979.73 (August 17, 2009) 1217.28 (April 23, 2010) +24.25%
2010-11  1047.22 (August 26, 2010)  1363.61 (April 29, 2011) +30.21%
2011-12 1119.46 (August 8, 2011) 1419.04 (April 2, 2012) +26.76%
2012-13 1365.00 (August 2, 2012)  1597.57 (April 30, 2013)  +17.04%
2013-14 1630.48 (August 28, 2013) 1890.90 (April 2, 2014) +15.97%
2014-15 1909.57 (August 7, 2014) 2130.82 (May 21, 2015) +11.58%

 

Could we see a 10% to 30% gain in the S&P 500 over the next eight months?  A rapid rise may seem unlikely now, but even a modest 12% gain from last week’s 1970 closing low could take us above 2200.

Stat of the Week:

*All content in this "Stat of the Week" section of Market Mail represents the opinion of Louis Navellier & Associates, Inc.*

Non-Existent Inflation Could Tie the Fed’s Hands

by Louis Navellier

Last Thursday, the Labor Department announced that the Consumer Price Index (CPI) rose by just 0.1% in July, a notch below economists’ consensus expectation of a 0.2% rise.  Excluding food and energy prices, the core CPI also rose 0.1% in July, which was also below economists’ consensus expectation of a 0.2% rise.  Food costs rose 0.2% in July and shelter costs rose 0.4% (the biggest monthly increase in more than eight years), so higher rental and housing costs were the biggest source of any movement in overall inflation.  In the past 12 months, the CPI has risen by only 0.2%, while the core CPI has risen by 1.8%.

Oil Barrels ImageInflation rates will probably be flat again in August. Crude oil fell below $40 a barrel and copper prices hit a six-year low last week.  During my August 20 CNBC appearance, I also mentioned that crude oil is seasonal and prices typically decline in the fall as worldwide demand drops simply because there are more people entering winter in the Northern Hemisphere than entering summer in the Southern Hemisphere.  Since crude oil is priced in U.S. dollars, the strong dollar is suppressing crude oil and commodity prices. Concerns over shrinking demand from a slower-growing China also added to investor concerns.  The only commodity that is bucking this downdraft is gold, which continues to firm up with all the uncertainty in the world.

The Fed was “Divided” last Month, but they may “Unite” Soon

Last Wednesday’s release of the Federal Open Market Committee (FOMC) minutes for the meeting held July 28-29 revealed that the needed conditions for an interest-rate hike were “approaching.” This language generated more uncertainty.  The FOMC minutes also revealed a divided Fed which may result in a split vote on rate increases at their September meeting, especially with the commodity price collapse.

On the same day – in a Wednesday Wall Street Journal opinion piece – the Minneapolis Fed President Narayana Kocherlakota said it would be a mistake to raise rates with inflation still soft.  Kocherlakota essentially echoed similar comments by Fed Vice Chairman Stanley Fischer in the previous week.

However, in an earlier Wall Street Journal interview with Atlanta Fed President Dennis Lockhart (“Fed’s Lockhart Says Central Bank Close to Raising Rates,” August 10) and a Market News International interview with St. Louis Fed President James Bullard (cited in The Wall Street Journal, August 19: “Fed’s Bullard Still on Board for September Rate Rise in Interview.”), both Fed Presidents signaled that they would vote fora September Fed rate hike, so the opinions at the Fed remain divided.

On Thursday on CNBC, I reiterated my prediction that I expect that if the Fed chooses to raise key interest rates, it will be “one and done” in December.  Furthermore, I added that the Fed would be under immense political pressure not to raise key interest rates in 2016, since it is a Presidential election year.

Fueling the FOMC uncertainty is the fact that Fed Chairperson Janet Yellen is conspicuously silent and will not be attending the Kansas City Fed’s annual conference in Jackson Hole, Wyoming, next week. It will be attended by central bankers from around the world. Fed Vice Chairman Stanley Fischer will be speaking in Jackson Hole on Saturday, August 29th, so hopefully the Fed’s intentions will clear up then.

The next FOMC meeting will be held on September 16-17, so I find it interesting that the next Producer Price index will be released September 11, and the Consumer Price Index will be released on September 16, giving the Fed plenty of information to question whether they can raise rates amid low or no inflation.


It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list. Click here to see the preceding 12 month trade report.

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 intended as an offer or 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.

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 of any offer 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 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 you. 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. Results presented include the reinvestment of all dividends and other earnings.

Past performance is no indication of future results.

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IMPORTANT NEWSLETTER DISCLOSURE: The 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 performances should be considered mere "paper" or proforma performance results. Navellier & Associates, Inc. does not have any relation to or affiliation with the owner of these newsletters. There are material differences between Navellier & Associates' Investment Products and the InvestorPlace Media, LLC newsletter portfolios authored by Louis Navellier. The InvestorPlace Media, LLC newsletters and advertising materials authored by Louis Navellier typically contain performance claims that do not include transaction costs, advisory fees, or other fees a client may incur. As a result, newsletter performance should not be used to evaluate Navellier Investment Products. The owner of the newsletters is InvestorPlace Media, LLC and any questions concerning the newsletters, including any newsletter advertising or performance claims, 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.

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Marketmail Archives Trade Summary

It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list. Click here to see the preceding 12 month trade report.

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 intended as an offer or 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.

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 of any offer 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 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 you. 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. Results presented include the reinvestment of all dividends and other earnings.

Past performance is no indication of future results.

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 intended or 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 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 performances should be considered mere "paper" or proforma performance results. Navellier & Associates, Inc. does not have any relation to or affiliation with the owner of these newsletters. There are material differences between Navellier & Associates' Investment Products and the InvestorPlace Media, LLC newsletter portfolios authored by Louis Navellier. The InvestorPlace Media, LLC newsletters and advertising materials authored by Louis Navellier typically contain performance claims that do not include transaction costs, advisory fees, or other fees a client may incur. As a result, newsletter performance should not be used to evaluate Navellier Investment Products. The owner of the newsletters is InvestorPlace Media, LLC and any questions concerning the newsletters, including any newsletter advertising or performance claims, 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. Request here a list of recommendations made by Navellier & Associates, Inc. for the preceding twelve months, please contact Tim Hope at (775) 785-9416.

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