Dividends “Trump” Long-Term Bonds

High, Reliable Dividends “Trump” Long-Term Bonds Again

by Louis Navellier

April 25, 2017

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

So far, March and April are not as bullish as they have been in previous years, possibly due to political disappointment over the snail-like development of the Trump economic agenda.  Since its peak on March 1, 2017, the S&P 500 is now down 2%.  In addition, Treasury bond yields touched their lowest level since last November.  Last Monday, the 10-year Treasury bond yielded only 2.16%, just 20 basis points above the S&P’s annualized dividend yield of 1.96%.  As of last Friday, the 10-year Treasury bond is yielding 2.25%.

United States Currency Image

These low bond rates tend to push frustrated investors toward high-dividend stocks for an alternative to higher-taxed bonds.  Since dividends are largely taxed at the maximum federal rate of 23.8%, while Treasury bond investors have to pay maximum federal taxes of 43.4% on interest income, dividend stocks have a massive after-tax advantage for wealthy investors; so any time the 10-year Treasury bond yield gets near the S&P 500’s dividend yield, that tends to be a great buy signal for the overall stock market.

In This Issue

We’ll save our analysis of the French election results for next week.  The May 7th run-off will be far more important than Sunday’s preliminary round.  In the meantime, this week’s edition will focus on how U.S. politics and interest rate dynamics can fuel current investment opportunities.  Up first, Bryan Perry focuses on stocks with high and reliable dividends.  Then, Gary Alexander and Ivan Martchev analyze current trends in China and North Korea.  Jason Bodner examines the latest sector swings, especially energy’s weakness, and then I’ll return with an invitation to our Teleforum for more timely strategic discussions this Thursday.

Income Mail:
Sagging Bond Rates Fuel Appetite for Dividends
by Bryan Perry
Crack Stock Picking with a Focus on Dividends

Growth Mail:
How Global Politics Affect Your Portfolio
by Gary Alexander
Why China Will Likely Neutralize North Korea’s Nuclear Threat

Global Mail:
Mysterious Weakness in the Shanghai Composite
by Ivan Martchev
China’s Market Resembles NASDAQ in 2000-02

Sector Spotlight:
Bad News Sells – Ask a Shark!
by Jason Bodner
Energy is the Laggard in the Last Week, Month, Quarter, and Longer

A Look Ahead:
In This Busy Political Week, Join Our Teleforum on Thursday
by Louis Navellier
The Fed is Not Locked Into a June Rate Increase

Income Mail:

*All content in "Income Mail" is the opinion of Navellier & Associates and Bryan Perry*

Sagging Bond Rates Fuel Appetite for Dividends

by Bryan Perry

When monitoring an index like the S&P 500, it’s important to note that five mega-cap tech stocks make up around 12% to 13% of that cap-weighted index. This is a significant fact when we talk about what “the market” is doing. Even though the S&P 500 is 2% below its all-time high, it’s also worth noting that the S&P 500 Index is trading well above its 200-day moving average, which stood at 2,234 as of last Friday.

Standard and Poor's 500 Large Cap Index Chart

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

That doesn’t mean every stock’s trend is healthy. Underneath this seemingly-strong market landscape, about 150 stocks, or roughly 30% of the S&P 500, are actually trading below their 200-day moving averages. With earnings season serving as Judgment Day for every publicly-traded stock, there are plenty of investors taking it on the chin from disappointing reports from widely-held stocks. Shares of several widely-held names, four of which are Dow components, bore the wrath of Mr. Market and were summarily beaten down this past week. This kind of divergent development may help explain why the yield on the 10-yr Treasury is ratcheting lower to 2.23% at a time when the Fed is thinking and talking higher rates.

Standard and Poor's 500 Index Chart

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

High-profile disappointments in “trusted” names cause us to wonder about those rosy predictions for first-quarter earnings, but there are also some corporate earnings coming in better-than-expected and those stocks are being rewarded. Those winners tend to be in big-cap tech, industrial, and transportation stocks.

Banks have been posting good results, but the market doesn’t seem to care because Treasury yields have declined precipitously in the past month. This is perceived as negatively impacting interest-rate spreads, so there is no love for what was the hottest sector coming into 2017. Here, too, a bevy of investors are seeking a safe haven in a sector that was working well at year-end but is now acting like dead money.

This kind of dislocation simply illustrates why some sectors have become very crowded and thus have a bigger-than-normal impact on investor sentiment when disappointment becomes more widespread. Add to the mix the saber rattling in the Korean peninsula, uncertainty in EU politics, attacks on ISIS, and the turning up of the heat on Iran, and it paints a landscape of more elevated risk than some investors have an appetite for, especially when some of their favorite so-called “bunker” stocks are getting creamed.

Clearly, not everything in the “widows and orphans” sectors is working, and stock selection is once again at a fresh premium. While there are some big-time losers in the early part of the reporting season, there will be a stable of winners that will emerge as the new dividend-paying leaders for 2017. That is why earnings season is important. It cuts through the rhetoric and clarifies where money flows are going to be directed for weeks and months ahead. It also calls into question the widely-touted virtue of passive investing when large-cap stocks that are big index components trade like cinder blocks in deep water.

Crack Stock Picking with a Focus on Dividends

Passive investing made good sense in March 2009 and a few years thereafter, but as the bull market becomes more mature, active investing by adroit asset managers should easily outperform passive investing because market leadership naturally narrows and thus weighs on broad market performance.

To address this quandary, investors are turning to specific companies in the S&P 500 Index that have increased their dividends every year for the last 25 straight years, even during the 2008-2009 recession. These “Dividend Aristocrats” are large-cap, blue-chip companies from many different industries, but they have all demonstrated a healthy balance between capital growth and dividend income. Stocks that have been able to increase their dividends for such a long period of time often have very durable businesses and have done quite well compared to the market, both in terms of total return and lower volatility.

As seen below, the S&P Dividend Aristocrats Index has nicely outpaced the S&P 500 over the past decade.  According to S&P, Dividend Aristocrats generated an annualized return of 9.7% over the past 10 years, easily topping the market’s 6.3% rate. Over this period, dividends accounted for 31% of the market’s total return, highlighting their importance in determining total shareholder return.

Historical Performance of Standard and Poor's Dividend Aristocrat's Index versus Standard and Poor's 500 Index Chart

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

In a similar fashion, Navellier & Associates’ dividend growth stocks have the ability to raise dividends by an average of 15% per year. In seeking out proven high-dividend stocks, investors have a fantastic alternative to the 1%-2% dividend yields most of the big-cap stocks in the Dow or S&P offer while at the same time dramatically reducing the risk of being long stocks that deliver an out-of-left-field big-time earnings miss that results in a trap-door sell-off.

The current earnings season is not turning out to be a broad-based parade of “beat and raise” reports, but it sure is a great time for stock pickers with a sharp set of tools in their analytical tool box.

Growth Mail:

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

How Global Politics Affect Your Portfolio

by Gary Alexander

This coming Thursday at 6:00 eastern time, Navellier & Associates will host a Teleforum entitled, “How Might Politics Affect Your Retirement Portfolio over the Next 3-6 Months?”  The word “retirement,” of course, refers to those currently IN retirement, or those planning for retirement – that is, ALL investors.

I hope you can join us.  Louis Navellier will share his latest views on politics and markets, opening up the line for your questions in this hour-long Teleforum.  I will serve as host and MC for this special event.

Tomorrow – a day before our event takes place – we have the perfect lead-in from President Trump, who promised to unveil the outline of his long-awaited tax plan on Wednesday – just three days before the end of his iconic “first 100 days.”  After all, there’s no reason to wait.  With hundreds of thousands of federal employees working in and around Washington, DC, in addition to 535 members of Congress, there’s no reason why some can’t work on healthcare, others on tax bills, and yet others on foreign policy questions.

Looking at the stock tape, the “Trump Bump” seems to have peaked on March 1, 2017, when the S&P briefly pierced 2,400, closing at 2,396.  As of last Friday’s close, we’re only down 2% from that peak; so you might consider this “the pause that refreshes” or a “nervous plateau,” depending on your outlook.

This recent pause may reflect growing confusion at the Trump White House, with healthcare failing to pass muster, then a promise that healthcare is still Job #1 to fix, before tax reform – as if this million-man-and-woman army of bureaucrats can’t manage more than one task at a time – by ‘walking and chewing gum’ at the same time.  Corporate tax reform is vital, so a lot is riding on tomorrow’s tax announcement.

Foreign policy will also take center stage this week with the results of the French election determining the front-runners that will face off on May 7th.  Meanwhile, rising tensions in the Middle East and the Korean peninsula continue as dramatic showdowns seem to be pointing toward another round of aerial warfare.

Why China Will Likely Neutralize North Korea’s Nuclear Threat

Stephen Colbert (in a mock job interview): “Do you have any awards or commendations?”
Barack Obama: “I have almost 30 honorary degrees, and I did get the Nobel Peace Prize.”
Colbert: “Really, what was that for?”
Obama: “To be honest, I still don’t know.”

--From “The Late Show,” October 18, 2016

The Nobel Committee awarded President Obama its Peace Prize in 2009 (his first year) for promoting nuclear non-proliferation.  Now, eight years later, we’re fighting the development of nuclear delivery systems in the unstable and hostile regimes of North Korea and Iran, not to mention India and Pakistan.

After his trip to Asia last month, Secretary of State Rex Tillerson took the opposite tack from the Obama administration, saying, “The policy of strategic patience has ended.”  In order to keep trade channels open, China seems to be our new ally there, writing in an April 5, 2017 editorial in the Global Times—owned by People’s Daily, the official mouthpiece of the Chinese Communist Party—that North Korea must halt nuclear testing or else China would “severely limit” its oil shipments to North Korea.  Amazingly, China also said that North Korea can’t be allowed to “descend into the kind of turbulence that generates a huge outpouring of refugees,” adding that China will also not allow “a hostile government” in Pyongyang.

Since coal accounts for over one-third (35% to 40%) of North Korea’s exports, most of it sent to China, and China has threatened to end oil exports, the very sick North Korean economy could grind to a halt.

Meanwhile, the Chinese economy seems to recovering fine after a slowdown (under 6% GDP growth) in 2015 and 2016.  According to Ed Yardeni (in “The Trump Doctrine,” April 18, 2017), Chinese merchandise exports (in yuan terms) surged 23.2% (year-over-year) in March, reaching a record high. Imports grew even faster, by 27.2%.  China’s GDP growth is now 6.9% (year-over-year) or 7.0% (quarter-over-quarter).

Although China’s GDP figures could be fudged, two-way trade figures are a reliable double-accounting system, since one nation’s exports and another nation’s imports have to reflect a balance of trade.

Also in March, industrial production rose 7.6% y/y, the best rate since December 2014 (see chart, below):

Chinese Gross Domestic Product and Industrial Production Chart

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

According to Business Insider (April 13, 2017), China’s imports of copper, crude oil, iron ore, and coal all surged in March, according to data from China’s National Bureau of Statistics (NBS).  These signs of a reviving Chinese economy help explain why China is cooperating with the U.S. in taming North Korea.

Global prosperity has grown exponentially in the last 50 years, including a sharp reduction in poverty and infant mortality and a sharp rise in literacy, education, vaccinations, and the number of democracies. China has been a big part of that growth, while North Korea is a reminder of China’s painful time of starvation, poverty, and despotism.  The 1.3 billion Chinese don’t like seeing a real-time reminder of the poverty and chaos of their Cultural Revolution (1966-1976), which most Chinese over 50 can remember.

Despots Image

Kim Jong-un looks like a young Mao Zedong – but without the aerobic benefits of Mao’s Long March.

Mao was a crude man.  He once said, “Hong Kong is a pimple on China’s bottom.”  Geographically, that’s where Hong Kong is located, so I guess you can also say that North Korea is a rash on China’s armpit!

It may be a painful transition, but our Asian allies can’t let a spoiled brat launch nuclear weapons.  Rising global trade and prosperity is China’s future, not some throwback regime in its proverbial shadow.  In that context, Kim Jong-un’s saber-rattling and forced starvation is a nagging reminder of China’s painful past.

Global Mail:

*All content in "Global Mail" is the opinion of Navellier & Associates and Ivan Martchev*

Mysterious Weakness in the Shanghai Composite

by Ivan Martchev

There has been a rather mysterious weakening in the Shanghai Composite index in the past couple of weeks after the Chinese stock benchmark was glued miraculously inside tiny daily ranges during the time that President Xi made his trip to Mar-a-Lago, Florida. If the Chinese authorities “held” the market in check while the Chinese President was visiting the U.S. – so that he wouldn’t have to save face during any renewed market turbulence – they seem to have stopped holding it now.

China Shanghai Composite Stock Market Index Chart

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

How do you “hold a market in place”? Suffice to say that there are huge pension funds as well as the People's Bank of China and various agencies that can get involved. The Chinese famously tried to plug a stock market crash in the summer of 2015 by touting how China Securities Finance Corp. was coming to the rescue. For more details, see the July 17, 2015 Bloomberg story, “China Unleashes $483 Billion to Stem the Market Rout,” which said, in part:

“China has created what amounts to a state-run margin trader with $483 billion of firepower, its latest effort to end a stock-market rout that threatens to drag down economic growth and erode confidence in President Xi Jinping’s government.”

“China Securities Finance Corp. can access as much as 3 trillion yuan of borrowed funds from sources including the central bank and commercial lenders, according to people familiar with the matter. The money may be used to buy shares and provide liquidity to brokerages, the people said, asking not to be named because the information wasn’t public.”

What we saw in early 2015 was a rather obvious stock market bubble driven by margin leverage with highly predictable consequences (see my April 27, 2015 Navellier Marketmail section “Can Crashes Be Predicted?”), while what we are seeing now are desperate attempts to hold up a market that simply will not stay up. From the looks of the trading pattern of the Shanghai Composite, this could be the fizzling of the Mother of All Dead Cat Bounces (MOADCB).

I call this a MOADCB because ever since the Chinese stock markets re-crashed in January 2016 (the third sharp leg lower in the chart above) we have been trading inside a narrow range. In other words, what the Shanghai Composite lost in January 2016, due to malfunctioning circuit breakers on mainland exchanges, it could not make up over the last 15 months. If that is not a dead cat bounce, then I don’t know what is.

China’s Market Resembles NASDAQ in 2000-02

It is interesting to note that most crashes have similar trading patterns. The cascading sell-offs that lead to lower lows after bear market rallies are also similar. The infamous Nasdaq Composite crash in 2000-02 saw multiple bear market rallies and lower lows until early 2003, when the tech benchmark began to make higher highs. Then, it re-crashed in 2008 and recently hit an all-time high of 5,916.78 last Thursday.

Nasdaq Composite - Monthly OHLC Chart

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

At the moment, the Shanghai Composite is behaving like the Nasdaq Composite from 2000-2002. I am engaging in this discussion to point out the similarities. Fundamentally speaking, I believe one needs to know what is going on behind the charts so one can understand them better. Charts only get you so far.

What is going on in China is the economic effect of a busted credit bubble. We see that in accelerated borrowing at the macro level with slowing economic growth compared to 2-3 years ago. I am aware of the pickup in economic activity over the past year, but since I do not trust Chinese economic data because I know that some of it can be doctored, I am not sure how real that pickup is.

Chinese Yuan versus China Foreign Exchange Reserves Chart

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

Chinese foreign exchange reserves have dropped by roughly $1 trillion from $4 trillion in mid-2014 to a hair above $3 trillion at the moment. Forex outflows accelerate and decelerate, which may reflect the measures the authorities are taking. Be that as it may, the yuan is slowly depreciating as guided by the PBOC, and I do believe it is facing a hard devaluation similar to the 34% cut in December 1993 (see blue spike in the chart above) as the Chinese view their currency as a tool that can stimulate the economy by bypassing an improperly functioning banking system that is likely to see a surge in bad loans.

Credit to Gross Domestic Product Gap Chart

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

On November 14, 2016 Bloomberg ran a story, “Will China’s Financial Bust Ever Come?” If I were asked the same question, readers of this column would not be surprised that my answer would be “Yes.”

The Bank of International Settlements (BIS) indicator, charted above, is not perfect but it indicates the trend. What the BIS indicator is missing is “shadow banking” leverage, which would suggest that this indictor is much further in the red than what it reads at present. Shadow banking leverage is so big that when credible estimates are included it pushes the total debt to GDP ratio close to 400%.

From the Bloomberg article:

“The credit-to-gross domestic product ‘gap’ focuses on the amount of credit provided to households and businesses as a share of gross domestic product. It shows when the ratio of credit to GDP is blowing out – suggesting a credit boom and the risk of trouble brewing.

“Nordic and Japanese crises in the late 1980s and early 1990s followed blow-outs and, likewise, the data flashed red for the U.S. during that country’s boom, which morphed into the global financial crisis.”

I think the Chinese hard landing has not yet come as the Chinese authorities have used all the tools in their command-style economy to lean against it. I think the hard landing will come because I do not believe there is an economic system in existence – even an oxymoronic hybrid of communism and capitalism that we have in China today – that can overpower the business cycle.

As the Chinese curse allegedly states: “May you live in interesting times.”

Sector Spotlight:

*All content in "Sector Spotlight" is the opinion of Navellier & Associates and Jason Bodner*

Bad News Sells – Ask a Shark!

by Jason Bodner

Any mention of sharks conjures up images of the wildly successful “Jaws” movies. Menaces of the seas are coming to get you if you tread in the wrong waters. Stories of shark attacks have perpetuated a fear and loathing of sharks in America and elsewhere around the globe. In the original (1974) Jaws movie, the deadly shark killed five people and a dog. Reality, of course, diverges drastically from fiction. The average number of shark attacks in the U.S. stands at 16 per year with one fatality every two years. That’s 16 attacks in a country of nearly 320 million people, and only five deaths per decade. Shark attacks are extremely improbable. In fact, it has been reported that in 2015, more people were killed taking selfies than by shark attack. By contrast, according to the journal Marine Policy, humans kill an estimated 100 million sharks per year, primarily due to overfishing and overharvesting of sharks for shark fin soup.

Sharks from the movie “Finding Nemo” Image

Perception often has a way of becoming reality. The current environment of terror, global aggression, populism, and political uncertainty creates a lot of tension and fear. The markets are a place to see what investors actually think and feel. Using that as an indication, the aggregate totals seem fine. The S&P 500 rose 0.85% last week, with five of 11 sectors rising by over 1%. Industrials saw a big week with a +2.03% gain. Consumer Discretionary, Information Technology, Materials, and Financials rounded out the sectors that returned north of +1.00% for the week. Real Estate also recovered, with a +0.69% gain.

Energy is the Laggard in the Last Week, Month, Quarter, and Longer

Since April 12th, both West Texas Crude and Brent Crude Oil prices have fallen more than 6%. This price pressure coupled with high inventories and low gas prices seems to continue to exert pressure on energy stocks. The sector was again the week’s worst and continues to be the three-month loser. In fact, the S&P 500 Energy Sector Index is the weakest performer for 1 week, month-to-date, 3 months, and 6 months. It will be interesting to see how earnings announcements affect the energy sector, but for now it’s not pretty.

Standard and Poor's 500 Daily, Weekly, Monthly, and Quarterly Sector Indices Changes Tables

What this signals to me is that we are seeing a push forward for growth-oriented and infrastructure stocks. Naturally these sectors are being helped by announcing positive earnings growth. Several key stocks are coming out and beating earnings and sales estimates. Real Estate stocks are benefiting from the rate environment – in which long-term bond (and mortgage) rates are low. Treasury yields are at 2017 lows, and the geopolitical climate does not lend itself to the Fed raising rates. This coupled with Beige Book comments on wage growth not materially affecting inflation helps direct capital to higher-yielding stocks.

The market changed dramatically last November 8th, with the proverbial line drawn in the sand after Trump’s surprise win. This means there was a pre-election market and post-election market, so when we look back six months to late October, we see mostly a post-election market which helped everything except energy – especially helping Financials, Info-tech, Industrials, and Consumer discretionary.

Standard and Poor's 500 Semi Annual Sector Indices Changes Table

The impressive double-digit 12-month performance of the top six sectors is coming heavily from the post-election market – a market largely built on hope and expectation of favorable policy reforms. It is great to see sales and earnings beating expectations now, which means the fundamentals are beginning to catch up to the technical performance. I am, however, cautious of an overheated market, based on two things: (1) Equity valuations remain elevated and (2) institutional accumulation has been slowing while selling has been increasing. This is not to say that I believe a major sell-off is near, but these are things to be aware of.

Standard and Poor's 500 Yearly Sector Indices Changes Table

I admit I am constantly disappointed by the media. The sad truth is that fear sells way better than hope or happiness. Friction, conflict, discontent, worry, and anxiety are sadly the commodities in demand. The majority of news, entertainment, and debate are centered on what’s wrong with the world. As long-time readers of this column know, I was fortunate enough to survive some major historical tragedies – such as 9/11 and the 2004 tsunami. The one takeaway from those events is that your time can be spent worrying about another catastrophe, or it can be spent dreaming and creating a better life. Sharks can either come at you in your nightmares or we can realize the truth that actual shark attacks are very few and far between.

Shark Dogs Image

How can we combat the negative slant to life? Perhaps Socrates said it best: “Be as you wish to seem.”

A Look Ahead:

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

In This Busy Political Week, Join Our Teleforum on Thursday

by Louis Navellier

There are at least two important political landmarks coming in the next three days – Trump’s tax plan will be unveiled tomorrow, and then there will likely be a crisis over raising the federal government’s debt limit on Friday.  We will discuss both of these events – and much more – in a live Teleforum on Thursday evening (6:00 to 7:00 p.m. Eastern time).  We’ll discuss which type of growth and income investments we believe will benefit you most, and which ones to avoid.  This Teleforum is free and I will even call you on our own dime if you simply click on the Registration box at the top or the bottom of this issue.

Political events are very important for economic growth and the continuation of this long bull market.  The “tipping point” for economic growth moving forward may very well be this Friday’s showdown over the federal government’s debt ceiling.  The Trump Administration wants to keep the federal government open, but spending on the border wall and other contentious items could derail federal spending on various other projects.  Since both sides lose if the debt ceiling is not raised, Friday’s showdown will be fascinating to watch.  It will be especially interesting to see what side will ultimately prevail and how federal spending might be modified to get a majority of votes in the House of Representatives to raise the debt ceiling.

The Fed is also watching domestic and global events, particularly the election in France and the fate of the euro.  Leading French Presidential candidate Marine Le Pen called the EU flag an “oligarchic rag” last week, so the rhetoric against the EU is heating up.  And British Prime Minister Theresa May called for an election in June, seeking a bigger legislative majority to help implement Brexit.  So, if the Fed decides not to raise key interest rates in June, it may be due to the capital flight from the EU, plus a slowing economy.

The Fed is Not Locked Into a June Rate Increase

On Wednesday, the Fed released its latest Beige Book survey, which said that inflationary pressures are moderating.  The Beige Book also said that wage growth is not raising inflationary pressures.  All 12 Fed districts reported growth, but the inflation comments in the Beige Book survey may be signaling that the Fed does not want to raise interest rates, partially due to the fact that U.S. bond yields have been falling.

Energy prices have kept inflation down so far this year.  Energy prices have been under unusual pressure (for this time of year) due to high inventories and rising production.  U.S. crude oil production is now running at 9.25 million barrels per week, the highest level since August 2015, thanks largely to U.S. shale producers.  As a result, gasoline inventories rose by 1.5 million barrels in the latest week, which made some energy-related stocks seem nervous last week.  Even though crude oil prices hit the lowest level in three weeks on Wednesday, energy companies are expected to post very strong first-quarter sales and earnings, so I expect a big rebound for many integrated energy companies in the upcoming weeks.


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.

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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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