Good Stocks Keep Rising

Despite Wall Street’s “Scare of the Week,” Good Stocks Keep Rising

by Louis Navellier

April 2, 2019

A slightly-inverted yield curve continues to spook investors, but our friends at Bespoke Investment Group documented the fact that during the previous six yield curve inversions, the S&P 500 rose by an average 1.75%, 6.16%, and 8.13% over the next month, three months, and year, respectively. Even more dramatic, after the last four times the yield curve first inverted, the S&P averaged gains of 19% after 12 months.

Our friends at Bespoke also like to follow the “smart money” on Wall Street. They noted last week that in January and February these “smart” folks liked to buy during the last hour of trading (3-4 pm EST). But in March, Bespoke says, there has not been much buying pressure in the last hour. This has raised some concerns that these smart buyers may have turned into patient net sellers, implying a coming correction.

Either way, I think the evidence is clear that today’s stock market is getting much more selective, due largely to the anticipation of a rapid deceleration in corporate earnings for the next two or three quarters, so this is the time in a recovery cycle when we try to be super-selective in our stock portfolio selections.

In This Issue

In a typical overreaction, market pundits are now calling for “immediate” rate cuts from the Fed. Bryan Perry says this is not in the cards. Next up, Gary Alexander, Ivan Martchev, and Jason Bodner defuse the scare-mongering of those who fear an “inverted yield curve,” with Ivan focusing on the junk bond signal and rising EPS later this year. Jason also marks the possible end to an “overbought” market condition last week. Then, I’ll close with an analysis of bonds vs. stocks and creeping deflation trumping inflation.

Income Mail:
Are Calls for “Immediate” Rate Cuts Warranted?
by Bryan Perry
“Advice from the Ice” Goes a Long Way

Growth Mail:
The Best Opening Quarter in 21 Years
by Gary Alexander
The Latest Premature Tizzy-Fit – An Inverted Yield Curve

Global Mail:
The Dichotomy Between Junk Bonds and Treasuries Continues
by Ivan Martchev
Aggregate EPS Still Growing in 2019

Sector Spotlight:
“Help Me (if you can), I’m Feeling Down…”
by Jason Bodner
Growth Sectors Lead (with One Exception)

A Look Ahead:
Chaos in the Bond Markets Makes Stocks Relatively Attractive
by Louis Navellier
Deflationary Forces are Building, Adding to Stocks’ Luster

Income Mail:

*All content of "Income Mail" represents the opinion of Bryan Perry*

Are Calls for “Immediate” Rate Cuts Warranted?

by Bryan Perry

As I have noted before, it is an almost universally-accepted view from market economists that every quarter-point interest rate hike the Fed acts on takes six to nine months to be fully felt in the economy. Under this formula, the rate cut from September 2018 is still working its way through the system.

During 2014-2017, then-Fed Chair Janet Yellen oversaw five quarter-point rate hikes as the GDP grew at an average annual pace of 2.23%. At the end of her term, the Fed Funds Rate was 1.5%. In early 2018, a newly-appointed Jerome Powell set out to slim down the balance sheet and normalize rates on the notion that the concurrent tax reform would presume to produce a higher sustained above-average growth rate.

Powell’s now-famous quote (“We haven’t begun to normalize rates”) back in September is now seen as a hasty and not-well-thought-out threat, delivered with a seeming air of cockiness, unaware that reckless words at the Fed can cause market collapses. After he uttered this statement, the S&P tanked by 20%.

And then, seeing what a mess he had made, Powell came out after Christmas with his great new “pivot.” Order was soon restored, with the S&P 500 closing out the first quarter with a historic +13.07% return.

Here are the dates of Powell’s four rate increases in 2018 – evenly spaced, about three months apart:

Powell's Four Rate Increases Table

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

So, now that the market has found some equilibrium, both Director of the Economic Council, Larry Kudlow, and Federal Reserve nominee, Stephen Moore – both ardent supply-siders – are calling on Mr. Powell to slash the Fed Funds rate by 50 basis points “immediately.” Wow! This has the tone of “watch out – that bus is about to hit you!” To me, this sounds like a very radical statement following the FOMC meeting in which the Fed left rates alone while noting “slowdowns in overseas economic growth.”

My first gut instinct is to say: “This is a pretty severe position to take.” What do Kudlow and Moore know that the rest of Wall Street doesn’t? Rates are currently are at 2.25%–2.50%, so a 50-basis point cut would put such rates below 2%. Maybe President Trump believes Jerome Powell is way behind the curve.

“Advice from the Ice” Goes a Long Way

Hockey’s “Great One,” Wayne Gretzky, once said, “I don’t skate to where the puck is, but to where it is going to be.” That pretty much sizes up where Jerome Powell is not – he is not in concert with what lies ahead. He seems more absorbed with the here and now, and that’s a problem because in any high-pressure situation, you “either lead, follow, or get out of the way.” If you’re the Chairman of the world’s largest central bank, you’ve got to lead. My concern is that Powell is a reactionary and not a visionary leader.

Wayne Gretzky Quote Image

My take is that Mr. Kudlow’s trip to China might have revealed some anecdotal evidence of the world’s second largest economy entering an accelerating downward spiral that could show up soon in published data that will evoke heightened investor fears about a global recession outside the U.S. Mr. Kudlow stated very clearly that, “Globally, there's a lot of weakness out there. Europe/euro zone virtually in a recession. China —very, very soft as we negotiate on trade.” Kudlow added: “In the absence of inflation, with some of these global threats, our view is, at some point ... I wouldn't mind seeing the Fed drop their target rate.”

Now, we are all well-versed on translating “Fedspeak,” but in translating Kudlow’s interview on CNBC last Friday, I would say that “Larry-speak” is either sounding an alarm or simply goosing the Fed in a political effort to juice the rally heading into an election year. The market has already shown signs of being highly sensitive to global slowdown fears, and where the Fed was all about fighting inflation six months ago, their greatest challenge going forward is likely to be in fending off deflationary pressures.

P.S. to Kudlow: Using phrases like “global weakness” is a tripwire that shouldn’t be tested too often.

With all that as a backdrop, there is a bullish canary in the coal mine on the verge of a upside breakout – or maybe being a bull trap. This indicator that all investors should keep watching is the junk bond market, as it has proven over time to be a leading indicator in the direction for the stock market.

These charts show the High Yield Bond ETF SPDR (JNK) for the last 1-year and 5-year periods.

Junk Bond Market Chart

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

The 1-year is demonstrating bullish relative strength, while the 5-year shows a major test of overhead resistance. I would urge that Mr. Powell pay particular attention to these charts and act accordingly.

Growth Mail:

*All content of "Growth Mail" represents the opinion of Gary Alexander*

The Best Opening Quarter in 21 Years

by Gary Alexander

We’ve just enjoyed the best first quarter in the 21st century – the biggest opening-quarter stock market increase since 1998. The three most-watched indexes each gained over 11% in the quarter just ended, but despite any recent “overbought” condition, the market kept rising, with smaller growth each month.

Best First Quarter Gains Table

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

Until recently, April has been historically the best month of the year for the stock market, but in the last few years December and November have surpassed April. The following chart displays average gains per month as of November 30, 2018 – right before December’s decline: This just goes to show that historical precedents are no way to invest in the stock market. December was the BEST month, but please recall what happened LAST December – a bloodbath we are all doing our best to wipe from our memory banks.

Standard and Poor's 500 Seasonality Chart

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

Since 1950, April has been up an average +1.45% in the S&P 500, just behind December and November. April has also risen the last six years in a row and 12 of the last 13 years, rising an average 2.77% in the 13 Aprils from 2006 to 2018. This year, however, we might not be able to keep this winning streak going if first-quarter earnings announcements start coming in negative in their year-over-year comparisons.

FactSet data currently shows analyst expectations of S&P 1Q earnings falling 3.9%, and the Atlanta Fed’s GDPNow forecasts just 1.7% GDP growth, so with the economy and earnings slowing down in the first quarter, it’s hard to envision a full year of the lofty optimism that drove the S&P’s 13% first-quarter gain.

The Latest Premature Tizzy-Fit – An Inverted Yield Curve

By one narrow measure, the “yield curve” inverted by low single-digit basis points (0.02% to 0.09%) a week ago, and this sent the market into a tizzy the previous Friday, March 22. But the yield curve is only one of 10 “leading indicators,” so-called because they tend to lead the economy (i.e., predict the future).

The yield comparison used in the Leading Economic Indicators (LEI) is the spread between the 10-year Treasury rate – set by the market – and the fed funds rate, set by the Federal Reserve, so it is an artificial construct based on the whims of the Fed Governors and their changing interest-rate policy decisions.

A more rational yield curve measurement would be the 10-year over the 2-year Treasury rates. By that measure, the yield curve has remained positive by at least 13 basis points in March, closing at +15 bps.

What’s more, we need to look at ALL 10 of the leading indicators to see where the economy is going, and not get obsessed with just one of 10 indicators. The overall LEI rose 0.2% during February, and it has been rising solidly for 10 years (see chart below) although it has been flat for most of the last five months.

Leading and Coincident Economic Indicators Chart

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

Both the LEI and the Index of Coincident Economic Indicators (CEI, blue line above) are in record-high territory. The less volatile CEI has risen 2.5% over the 12 months (through February 28). The CEI tracks well with GDP, so this suggests that real GDP is growing at a reasonably healthy 2.5% annual rate.

In the past, I have written about not overreacting to slight or temporary yield-curve inversions. First, there is the long lead-time. According to economist Ed Yardeni, “Prior to the last seven recessions, the yield curve inverted with a lead time of 55 weeks on average, with a high of 77 weeks and a low of 40 weeks. Along the way, it gave a few false, though short-lived, signals during the 1980s and 1990s.”

Yield Curve Chart

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

Notice the several “false alarms” in the late 1980s and 1990s. Even if accurate, once the yield curve stays inverted for a few weeks, that still means we have about a year to plan for the next possible recession!

We must also watch the Fed’s hot-and-cold reactions to the economic data. Since a yield inversion depends on the Fed’s actions, a rate cut would solve an “inverted” yield curve situation overnight. Right now, the Fed says they will institute no more increases this year, but they never promised not to cut.

There are several more technical reasons I could cite for not losing sleep over a short or temporary yield curve inversion, but suffice it to say: Wall Street must always climb its “wall of worry,” justified or not.

Global Mail:

*All content of "Global Mail" represents the opinion of Ivan Martchev*

The Dichotomy Between Junk Bonds and Treasuries Continues

by Ivan Martchev

The relentless bids in the U.S. Treasury market continue, with the 10-year Treasury yield closing last week at 2.41%. Given the fierce rebound in the high-yield market – with key high yield ETFs trading at fresh 52-week highs – I would have expected “risk free” investments like Treasuries to have higher yields but the global economy is much weaker than the U.S. economy and the U.S. offers the highest interest rates of any developed market. Simply put, there aren't any government bonds to buy other than the U.S.

iShares iBoxx High Yield Corporate Bond ETF Chart

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

My experience tells me that a strong high-yield market means a strong economy. By the looks of the largest high-yield ETF, the economy is doing fine. I know that the technical inversion of the 10-Year Treasury trading below some short-term interest rates has raised some eyebrows, but this is not a real inversion, as the more closely-watched 2-10 spread is still positive. The technical inversion stems from the fact that both 10-year German bunds and Japanese Government Bonds (JGBs) are in negative territory so the 10-year Treasury is being pulled lower by negative interest rates in the other key global markets.

Both Treasury and high-yield bonds seeing falling market-driven rates means that the interest rate spread between high-yield bonds and Treasuries has stopped falling and is moving sideways. At 408 basis points (4.08%) the junk bond composite is 100 basis points lower than when Mr. Trump was elected President.

Junk Bond Composite Chart

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

I know that the economy has slowed some from the first sugar high of the Trump tax cuts, but this was to be expected. If we follow the pattern of the Bush tax cuts of 2003, there will be a sugar high, a pause, and then a second leg up in economic activity. My conversations with investors suggest that very few are looking for a second-half reacceleration in the economy, yet this is precisely what may happen next.

The strength of the high-yield market certainly suggests the economy is doing fine, despite this soft patch.

Aggregate EPS Still Growing in 2019

First-quarter earnings will be the first quarter since 2016 to see negative EPS growth for the S&P 500. Current estimates are to the tune of -3.9%. The main culprit was the tax cut and the much higher EPS growth rate we saw for the S&P 500 in 1Q2018 and 2Q2018 -- hence the difficult y/y comparisons.

Estimated Price per Share versus Change in Price Chart

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

In addition to the difficult comparisons with 2018, the consensus estimates dropped rather dramatically as the quarter progressed. To get to the present -3.9% projections, consensus estimates were cut by 7.2%, which was much more than the typical EPS cut as a quarter progresses. As things stand at the end of the first quarter, the consensus for the full-year 2019 calls for 3.7% EPS growth and 4.8% annual revenue growth.

In the brave new world of quantitative tightening – where the size of the Federal Reserve balance sheet disproportionately impacts the aggregate level of asset prices in the system – we had a situation in 2018 where better than 20% EPS growth was met with a 4.5% decline in the S&P 500 (counting dividends), so it is entirely conceivable that we could see only a 3.7% EPS gain and a better than 20% rise in the S&P 500 in 2019, as the 2018 anomaly is being reversed: The market flips around but makes modest net gains.

Dow Jones Industrial Average versus United States Central Bank Balance Sheet Chart

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

There is every indication that there won't be any rate hikes in 2019 and the Fed balance sheet unwinding will stop, as per the Fed Chairman’s own words. Still, the United States is a heavily-indebted economy and market-driven interest rates still matter. If indeed the 10-year Treasury yield is driven lower by the troubles in Germany and Japan, the bond market has already given the U.S. economy an interest rate cut with falling yields of both Treasuries and high-yield debt, which is not a combination that one sees often.

I think the chances of a soft landing in the U.S. economy are very high, similar to what we saw in the mid-1990s under the Greenspan Fed. Chinese economic data has again perked up, with every indication that a trade deal is near completion, so I suspect that the present EPS estimates for the S&P 500 may be rather conservative. Consensus estimates call for a 3100 target for the S&P 500 by the end of 2019.

That seems about right to me.

Sector Spotlight:

*All content of "Sector Spotlight" represents the opinion of Jason Bodner*

“Help Me (if you can), I’m Feeling Down…”

by Jason Bodner

The best credentials don’t always lead to success, and success doesn’t always come from those with the best credentials. Consider that none of the four Beatles could read or write music, yet these four guys are considered to be the greatest rock band in history, and the Lennon-McCartney writing team dominated the list of the greatest songs of the 1960s. They had the most #1 hit singles in a year, the most albums and singles reaching #1, and the top 5 records in a week (April 4, 1964), yet they couldn’t read or write a note.

Beatles Billionaires Image

That’s only one example. Just look at today’s self-made billionaires who didn’t graduate college. Mark Zuckerberg, Steve Jobs, Michael Dell, David Geffen, Dave Thomas, and even John D. Rockefeller – none of them finished college. Neither did Kim Kardashian, but hey, you can’t argue that she’s not successful.

My point is that information we see daily, even if it comes from credible sources, may not help us much.

Right now, there is little left of the hangover that came from the air-pocket on Friday, March 22nd. That was the day world stocks had a tantrum because of the inverted yield curve. The Russell 2000 swooned more than -3% that day. Here we are, over a week later, so let’s have a look at how stocks are doing now:

Standard and Poor's 500 Sector Indices Changes Tables

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

The first thing to notice is that, by and large, stocks are up. What’s interesting to me is that with the media drum-beating a “growth slowdown” and an “inverted yield curve” prefacing a recession, stocks don’t care. In fact, small-cap stocks decided not to tune into the newscasts. The S&P Small Cap 600 and Mid Cap 400 outperformed value handily. The S&P 500 Growth index lagged small caps as well, but let’s dig a little further. The growth-heavy Russell 2000 surged 2.25% the past week, but growth-heavy NASDAQ lagged against the other major indexes – so what gives? Let’s look at the sectors to dig out some clues…

Growth Sectors Lead (with One Exception)

Industrials, Financials, and Materials led. The growth performer was Consumer Discretionary. Those stocks surged nearly 2% for the week. When we get to Information Technology, we start to see what has hampered growth stocks. Infotech was one of the weaker sectors. What’s dragging it down can be seen in the biggest winning segment since Christmas Eve. The PHLX Semiconductor Index has rallied over 30% since the lows were put in on December 24th. Last week, however, that index was down -0.35% during a strong week everywhere else, so the semis are holding back the NASDAQ, which is holding back growth.

Utilities and Communications declined last week. To me, this means that growth (ex-Semiconductors) is still leading. But considering the previous strength of the semi’s sub-group, there is no need to worry.

Let’s pause to deconstruct the yield curve scare: On March 22, the 3-month Treasury yield surged higher than the 10-year Bond. This spooked everyone and caused stocks to sag. The prevailing logic was that lending short-term yielding more than long-term is a warning sign. However, the typical measuring rod for this recessionary crystal ball is the 2-year inverting over the 10-year, and that has not happened yet.

It’s also worth noting that while all nine prior recessions were prefaced by a 2/10 yield-curve inversion, not all yield curve inversions lead to recessions. Furthermore, recessions typically occur 12-18 months after these inversions (if they come at all). And finally, former Fed Chair Janet Yellen came out last week and said on the record that she believes the data is strong and should not lead to a recession.

The bottom line is that the “fear of the week” is based on flawed logic with a lot of skewed perceptions.

Here’s what I think is really happening: the market was blowing off some steam on March 22. The ratio of unusual buying to selling – which I focus on – has seen one-way buying since January. A measure of buying over selling at or above 80% is “overbought.” That trigger was hit on February 6th and the market remained overbought for 34 trading days, until last week, March 27, when we slipped back under 80%.

Look at the table below to see how selling hasn’t picked up so much as buying has slowed a bit.

Map Signals Table

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

Sometimes the most reputable sources may have it wrong. The data is there for all to see, if you want to see it. Hellen Keller said it well, “Keep your face to the sunshine and you cannot see a shadow.”

A Look Ahead

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

Chaos in the Bond Markets Makes Stocks Relatively Attractive

by Louis Navellier

The market is flat but it’s the best place to be due to the chaos associated with the credit (bond) markets. The German 10-year bund yield meandered into even deeper negative territory last week. Some say that rates in Europe, like Japan, will never go much higher due to aging demographics, slower economic growth, the European Central Bank (ECB) stimulus – and a Brexit mess in which Prime Minster Theresa May may have to resign in order to break the logjam of Parliamentary resistance to her Brexit plans.

Wall Street figured out last week that low Treasury yields, negative German yields, and continued Brexit chaos is good for the stock market. Rumblings of a potential Fed rate cut should be ignored, since the Fed is trying to promote stability, not unsettle the U.S. economy with an impending interest rate cut.

In a real shocker, Stephen Moore, President Trump’s latest pick for a seat on the Fed, has been calling for the Fed to reverse course and immediately cut rates by a whopping 0.5%!  In an interview with The New York Times, Moore said that the Fed was wrong in raising rates 0.25% at its September and December Federal Open Market Committee (FOMC) meetings and that these interest rate hikes made him “furious”!

I have met Stephen Moore several times at multiple MoneyShows, where we were both speakers. I always found his arguments to be very persuasive. However, many on the FOMC and in Congress view Stephen Moore as merely a Trump supply-side “plant” to make the President’s economic arguments. Frankly, the Congressional hearings for his nomination should be fascinating and entertaining – and grueling for him.

Most bond experts I talked with last week believe that the Fed will try to effectively flatten the yield curve via its asset sales in the upcoming weeks and months. In the meantime, I cannot emphasize enough that the recent yield curve inversion has more to do with global capital flight than a weak U.S. economy.

Deflationary Forces are Building, Adding to Stocks’ Luster

Deflationary forces are building, as both median housing and energy prices moderate. The trend toward lower interest rates is also positive for higher stock prices, especially for dividend growth stocks!

There is plenty of new evidence that deflation is brewing. For example, last Tuesday it was announced that the S&P CoreLogic Case-Shiller 20-city index of real estate prices rose 0.1% in January and just 3.6% in the past year, which is the slowest annual pace since 2012. Only five of the 20 cities surveyed reported median home prices rising in January, so prices around the country are softening in early 2019.

House Construction Image

In addition, the Commerce Department on Tuesday announced that housing starts declined 8.7% in February to an annual rate of 1.162 million, the lowest level in more than 18 months. Additionally, building permits declined 1.6% in February. Affordability seems to be a major issue, since single family home starts declined 17% in February to an 805,000 annual pace, the lowest level since May 2017.

Also on Tuesday, the Conference Board announced that its consumer confidence index slipped to 124.1 in March, down from 131.4 in February. Even more shockingly, the “present situation” component slipped 12 points to 160.6 in March, the largest one-month decline since 2008. The “consumer expectations” component also fell four points to 99.8, but no matter how moody consumers get, they tend to cheer up in the spring as the weather improves, so I expect consumer confidence to improve in the upcoming months.

Rounding out the real estate numbers, on Friday, the Commerce Department reported that new home sales rose 4.9% in February to an 11-month high and an annual pace of 667,000, but in the past 12 months, new home sales have risen only 0.6%, including several months of declining sales. Median home prices have moderated and now stand at $315,300, which is 3.6% lower than a year ago!  There is no doubt that more multi-family home sales versus single-family homes are responsible for the decline in new home prices.

On a final deflationary note, the Energy Information Administration (EIA) announced last Wednesday that crude oil inventories rose by 2.8 million barrels in the latest week. This was truly a big surprise, since analysts were expecting crude oil inventories to decline by 1.2 million barrels. Some disruptions in crude oil exports due to a tank fire in the Houston ship channel may have distorted crude oil inventories, but more supply is also coming online. If oil inventories continue to rise, energy prices should taper off.


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.

Marketmail Archives