Greece, China, and Puerto Rico

Greece, China, and Puerto Rico: Three Financial Crises at Once?

by Louis Navellier

July 7, 2015

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

The Greek crisis is dominating the market lately. After the stock market’s sudden sell-off due to the chaos in Greece last week, the Dow Jones index crossed below its 200-day moving average. The following chart illustrates that the Dow Industrial’s 200-day moving average often represents a great buying opportunity:

Dow Jones Industrial Average Chart

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

On the first trading day of July, the Dow recovered by 138 points. We have yet to see what the dramatic Sunday vote in Greece portends for the euro-zone, the euro itself, and global stock markets.  My hunch is that the markets have already priced in preparation for the gradual departure of Greece from the euro-zone.

Shanghai Building ImageMeanwhile, China’s Shanghai Composite Index declined 10% last week and is now down nearly 29% from its peak on June 12.  According to CNBC and Reuters, reporting on July 3, China’s Security Regulatory Commission (CSRC) has set up a team to look at “clues of illegal manipulation across markets.” After Friday’s market close, a CSRC spokesman said that China would cut initial public offerings and capital raisings and support long-term investors entering the market to help stabilize prices.  Previously, China’s Shanghai stock market had more than doubled between November and mid-June, fueled largely by retail investors using borrowed money.

Then, on Saturday, the Securities Association of China announced that 21 Chinese brokerages will invest the equivalent of 15% of their net assets as of June 30 (circa $19.3 billion) in a market stabilization fund that will invest in blue chip ETFs designed to shore up Shanghai stock prices.  The financial media will likely forecast that any China market crash will soon spread to other stock markets around the world.  However, the last Asian crisis in 1998 remained contained in Asia, so I do not expect the Shanghai stock market woes to spread beyond Asia. Mostly, it will hurt those who used margin to buy speculative stocks.

Puerto Rico also suffered a financial crisis last week when Governor Alejandro Garcia Padilla announced that his Commonwealth could not afford to repay its $72 billion in debt.  Puerto Rico paid its bond interest last week, but they need to restructure their debt and begin a managed default process soon.

In This Issue

In this week’s Income Mail, Ivan Martchev will go into more detail on the Chinese stock market collapse and the outcome of the Greek referendum.  Gary Alexander’s Growth Mail will offer a preview of a major Bull vs. Bear debate this week.  (He has chaired a lot of these – sometimes with me in the bullish camp.)  Then, I will return to analyze the news on the jobs front and other indicators released last week.

Income Mail:
What’s Chinese for “Margin Call”?
by Ivan Martchev
Gruyere Souvlaki

Growth Mail:
The Perma-Bears Have a Lot to Answer For
by Gary Alexander
There’s a “Lot of Ruin” (i.e., a Huge Margin for Error) in any Nation’s History

Stat of the Week:
223,000 New Payroll Jobs Added in June
by Louis Navellier
Other Economic News is Mostly Positive

Income Mail:

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

補倉(“Bǔcāng”) = Margin Call

by Ivan Martchev

A typical fortune cookie would likely carry an encouraging and positive message, like: “Meeting adversity well is the source of your strength.” Or, “A dream you have will come true.” Better yet, “Our deeds determine us, as much as we determine our deeds.” I have heard way too many of those slogans as my daughter reads them out loud as she feeds the fortune cookies to my dog, Doxie the dachshund, who has never really cared for the paper cliches, although he has definitely acquired an appetite for the vanilla-flavored cookies.

If you flip the tiny strip of paper, there is typically another message on the other side. It often says: “Learn Chinese” along with some Chinese characters, their phonetic pronunciation, and an English translation.

It seems that through a printing glitch in China few weeks ago, all fortune cookies had a more nebulous message printed: “Be on the lookout for coming events; they cast their shadows beforehand.” On the other side, for the benefit of fortune cookie connoisseurs who do not speak the language, it said:

Learn Chinese: 補倉 (Bǔcāng) -- Margin Call

I like to think that this may have happened on June 12, the day the Shanghai Composite hit its recent multi-year high of 5178.19. The index closed last Friday at 3686.92, down 28.8% in three weeks.

This is a crash:

Shanghai Composite - Daily OHLC Chart

Source: Barchart.com.

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

Earlier this year (on April 27), when this train of greater fools, aka the Shanghai Composite, was gathering momentum, I had to use less absolute language, like “The Chinese market may crash.” I don’t need to do that anymore as it has crashed indeed. This is a fact. Here is why it may crash some more.

The Chinese financial system is operating on record leverage at a time when the real estate market has seen a decisive downturn from record highs. In some respects, China today is where Asia was in 1997, the U.S. in 2008, or better yet, in October 1929.  The Chinese government seems to believe that it can intervene against any market or cure any economic weakness. This time it actively encouraged the parabolic rise in stocks as a means to offset the weakness in the economy resulting from the decline in the real estate market, which by the way, is still deflating.

The Chinese government, which a famous emerging markets strategist used to call “the cadres,” tried to substitute one bubble (in real estate) for another (in stocks). This maneuver has resulted in the unfortunate outcome where now the cadres will have to deal with two ongoing crashes simultaneously, one in real estate and one in stocks. This dual crash situation, combined with the likely increase in problems in the Chinese banking system is likely to push the economy into a bad recession, in my opinion.

The cadres tackled the 2008-2009 weakness in demand for Chinese goods by forced lending. That did support the Chinese economy, but at what cost?

Debt to Gross Domestic Product Ratio Chart

Source: Bloomberg.com.

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

Since the last time we had a bubble in the Shanghai Composite in 2007, the Chinese total debt to GDP ratio has risen from 158% to 282%. Keep in mind that Chinese GDP has nearly tripled since that time. The interesting dynamic here is that as the economy grew at a breakneck pace, total financial leverage in the economy grew much faster, hence the expanding debt-to-GDP ratio. I don’t think official financial leverage estimates take into consideration the shadow banking system, where unregulated lending has grown even more dramatically in the past 5 years.

China's Shadow Banking Sector Chart

Source: The Brookings Institution.

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

Some estimates from JP Morgan put shadow banking at 81.2% of 2013 GDP. Given how fast regulated debt growth has exploded since the end of 2013 and the crackdown on regulated lending that Chinese regulators have done since, it is entirely possible that the unregulated shadow banking sector has surpassed 100% of GDP by the middle of 2015 as corporate and government entities that could not get regular loans increasingly turned to the shadow banking system. This debt overhang may lead to hellish consequences as the real estate market keeps deflating and the stock market keeps unraveling.

Margin Loans fuel China Equity Rally Chart

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

The trouble with the Shanghai Composite is that it is experiencing the cascading forced selling that is customary when large amounts of leverage are used. A margin call is a margin call. To the Chinese it may be a bǔcāng, but it does result in the same forced selling there that it does all over the world. I observed with great interest how the leverage was mounting in this parabolic rise of the Chinese markets and it was not all that difficult to see that it was going to end badly. On April 1 of 2015, Bloomberg reported that:

“The outstanding balance of the margin debt on China’s smaller exchange in Shenzhen was 502.5 billion yuan on April 1. That puts the combined figure for China’s two main bourses at the equivalent of about $242 billion. In the U.S., which has a stock market almost four times the size of China’s, margin debt on the New York Stock Exchange was about $465 billion at the end of February.”

What Bloomberg did not report that day is that the infamous Chinese shadow banking system had infiltrated the stock market and that provided margin debt to the tune of 500 billion to 1 trillion yuan. Since it is unregulated, nobody has the faintest idea what the exact number is. If the shadow banking system is indeed at 100% of GDP, the number could theoretically be well past 1 trillion yuan. The reason why the Shanghai Composite is unraveling so fast is that unregulated margin leverage extends past 5X, unlike its regulated version that stops at 2X. At 5X leverage, a 30% decline is already a wipeout.

The trillion yuan question is, what happens next?

Over the weekend, we learned that Chinese brokers are setting up a $19 billion fund to stem the market rout. I laughed at the headline number, as this amount is about the same size of a single large U.S. mutual fund and a rounding error compared to the $2.4 trillion that has already disappeared, courtesy of the fascinating use of leverage. The Chinese have halted IPOs. I would not be surprised if the PBOC will be buying futures and ETFs next (the BOJ is quite fond of the latter in the Japanese market as we speak).

1990 Japanese Crash Chart

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

Because of the leverage employed, this Shanghai drama is likely to look more like the Dow in 1929, when some traders leveraged their stock trades to the tune of 10X.  Or perhaps it will be more like the Nikkei in 1990. The Asians tend to be the ultimate momentum traders, so the dynamics may be similar.

The larger point is that the Shanghai Composite just crashed and we are far from seeing the ultimate market low, which may be a year to two from now. If the Chinese economy de-leverages, I think we could see a very bad recession.  I know that the cadres feel they can nip this in the bud the way they did with their forced lending strategies in 2009, but I’ve got two words for the cadres: Margin call.

Gruyere Souvlaki

It is Sunday night and the Greeks have voted “όχι” (“no”) in support of their Prime Minister Alexis Tsipras and his bid to end austerity. The currency markets are open and the euro is taking this as a negative for the euro-zone so far, as market participants feel that this vote increases the likelihood of Greece leaving the euro. The German Dax futures are only down marginally compared to how they acted the previous Monday, right after this glorious referendum was announced the previous weekend.

On this memorable day for Hellenic democracy, when the government called a referendum on whether it should pay its debts, it is clear that ordinary Greeks feel betrayed and bewildered. It is not well known to non-speakers of the Hellenic language that the simple words for “no” (όχι, pronounced “ohi”) and “yes” (ναί, pronounced “ne”) used on the ballot can be very confusing. In most Slavic languages, spoken in the countries neighboring Greece, the Slavic word for “no” (or “не,” phonetic “ne”) is pronounced precisely like the Greek word for “yes” (ναί, phonetic “ne”). So, if the Greek for “yes” means “no” to a whole lot of their neighbors, it is no wonder that Hellenic diplomacy has trouble making progress on more complicated issues related to its membership in the euro-zone.

Euro Fx United States Dollar - Daily OHLC Chart

Source: Barchart.com.

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

What does “όχι” mean anyway, even to the Greeks?

I know that the Greeks want to have their free gyros and eat them too and that to them the όχι vote does not necessarily mean leaving the euro. What is more relevant is how the euro-zone powers-that-be, led by Germany, view the όχι vote. To the Germans, it is unthinkable to keep lending to a fiscally irresponsible country so that it can maintain a standard of living that it could never achieve on its own.

In the end, with Greek banks closed for most of the past week and rationing euros to pensioners and depositors in morsels, it all comes down to the European Central Bank. The ECB is holding a sharp sword to the throat of the Greek banking system and it could collapse it at whim via the removal of further Emergency Liquidity Assistance injections, which so far have been frozen at 89 billion euros (about $100 billion). When the ECB stopped giving Greek banks more money last week, they closed. What happens if the ECB refuses to release more funds? Does the troika really want Greece to collapse?

Greek Drachma Image

The Greeks are betting that the troika does not want the fall of the Hellenic financial system and therefore they will succumb to better terms on a new bailout plan that has yet to be negotiated. Much better terms in a speedy bailout will be seen as a defeat to the troika, which is why it’s likely not coming.

A Cyprus-type scenario with bank closures, deposit haircuts, and some sort of a debt restructuring may be a possibility. It is also possible that this prolonged bank holiday resulting from the tightening of the ECB’s monetary vise will topple the Syriza government (although with a 61% “no” vote, Syriza surely feels that it has maintained its mandate to rule the country). And then there is the Grexit, when the glorious drachma (pictured above) replaces the euro and Greece likely leaves the European Union.

As of Sunday night, all of the above scenarios are still possibilities. They could become probabilities as the week unfolds.

All over Athens, real-life reincarnations of taverna proprietors like Mr. Gus Portokalos must be worried. Mr. Gus Portokalos may be a fictional character from a popular comedy, but it is my experience that real-life tavern proprietors in Athens are much like him. The banks have been closed for over a week and they have no money to buy feta cheese, which is a staple of Hellenic cuisine and a key ingredient in the popular Greek dish souvlaki, but no one is coming to help.

Upon learning of the feta shortage, embattled Prime Minister Alexis Tsipras scratches his head, ponders the difficult decisions that heads of government all over Europe have had to make for their peoples over the centuries, and remembers how Marie Antoinette handled a similar issue during the French Revolution. He personally calls Mr. Gus Portokalos and after an exchange of pleasantries he brilliantly notes:

“If there is no feta, let them eat Gruyere.”

Growth Mail:

*All content in Income Mail is the opinion of Gary Alexander*

The Perma-Bears Have a Lot to Answer For

by Gary Alexander

While you’re reading this, I’m on my way to Freedom Fest in Las Vegas, an eclectic gathering of free minds.  It’s held the week after July 4th every year to celebrate the long heritage of freedom we enjoy in America. There are concurrent sessions covering the global economy, stock markets, politics, the arts and sciences, and a series of classic debates.  With over 2,000 attendees, it has become bigger than any other investment seminar I have attended in recent years. I will be a moderator on five panels and debates, the first being the classic bull vs. bear debate, which follows the “Great Debate” between the polar opposite economists Paul Krugman (of the New York Times) and Steven Moore (of the Wall Street Journal).

In my bull vs. bear panel, the bears have a lot to answer for.  In the 2014 Freedom Fest, one of the bears called for an imminent decline of the U.S. dollar.  At the time, the U.S. Dollar Index was 80. It’s now 96, up 20%, after breaching 100 in March. The euro was $1.36 a year ago. It’s now around $1.11, down 18%.

United States Dollar Index Chart

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

Last July, the bears also predicted a sharp decline in U.S. stocks. The S&P 500 was at 1,973 then. As of last week’s close, it’s at 2,077, up over 5%. Longer-term, some of these perma-bears have been predicting a severe economic crisis since the 2009 bottom – shortly after this bull market began.  Five years ago, their tune was identical. Here’s what I wrote in my Navellier market analysis five years ago – on July 15, 2010:

“I just got back from the Freedom Fest in Las Vegas, where the majority of speakers pointed toward the imminent downfall of the U.S. dollar, stock market, banking system and our global military ‘empire.’  I heard about how we’ll be drawn into a Third World War in the Middle East if the conflict between Iran and Israel escalates. Back home, we’ll see a double-dip recession, led by a new housing decline, with states and localities declaring bankruptcy; rising interest rates (and/or inflation) … all resulting in a run on the dollar and a stock market crash.”

P.S.  The S&P 500 traded at 1,070 at that time, so these bears have missed a near-doubling in stocks since then.

On the winning side, the bulls have a lot to crow about.  Last year, I reported on Alex Green’s “Case for Bull Markets in 2014-15,” saying that he was “a lonely bull in a big bear pit.  Running concurrently were two sessions titled ‘Run You Fools! The End is Near!’ and ‘The Greater Depression is Here to Stay.’”

This year’s bull vs. bear debate should be interesting, since the bears can at least claim the market hasn’t done much for us lately.  The S&P rose only 0.2% in the first half of 2015, and the Dow fell by 1.14%.

Bulls and Bears ImageIn their June 30 posting, “Most Uneventful First Half on Record,” Bespoke Investment Group said the first half will go down in history as “the first year in the S&P 500’s history where the index was never up or down more than 3.5% YTD on a closing basis during the first half.”  They also said, “The average stock in the S&P 500 was down 0.01% (yes, 1 basis point) in the first half of 2015.  While the broad market was flat, though, there were certainly pockets of strength and weakness, and if you were in the right sectors and groups, outperformance was available.  Growth outperformed value in the first half, and small-caps outperformed large caps.”

In their July 1 posting, “Performance Drivers in the First Half,” Bespoke said that small-caps and mid-caps outperformed large caps.  Using ETFs as their proxy, Bespoke says the Russell 2000 ETF finished up 4.36% in the first half, with small-cap growth ETFs beating value: The Small-cap Growth ETF is up 7.03% YTD vs. a decline of 0.15% for Small-cap Value.  Bonds fared much worse, with long-term (20-year+) Treasury bonds down 6.66% in the first half.

There’s a “Lot of Ruin” (i.e., a Huge Margin for Error) in any Nation’s History

This six-year bull market has featured non-stop crises, creating a “wall of worry.”  Looking back at our Market Mails in early 2010, I discovered 12 of 13 consecutive weeks with a scary headline about the Greek crisis, and here we are – once again – concerned about the future of that tiny Mediterranean nation.

In the last two years, we’ve seen similar panics over Cyprus and Crimea; a rise and fall in oil prices; the waxing and waning of ISIS; and an Ebola attack which (thankfully) was rapidly contained – yet the S&P 500 rose 29.6% in 2013 and 11.4% in 2014. Despite a flat 2015 so far, the S&P is up 211% in 6-1/3 years.

Seedling ImageWe just celebrated America’s 239th birthday last weekend, so it’s interesting to note that our situation did not look so rosy on July 4, 1776, either.  The war’s turning point didn’t come until the autumn of 1777 in Saratoga, NY.  When news of the Battle of Saratoga reached Britain, a young Scottish barrister, Sir John Sinclair of Ulster, then age 23, told economist Adam Smith, then 54: “If we go on at this rate, the nation must be ruined.” But Adam Smith responded, “Be assured young friend that there is a great deal of ruin in a nation.” By that, he meant that nations can absorb a lot more blows than the pessimists tend to think.

Britain rallied from its loss of the colonies in the 1780s to launch an Industrial Revolution that helped to make Britain much richer, fueling its imperial expansion into other continents. According to estimates by the economist Nicholas F.R. Crafts in his 1985 book, “British Economic Growth During the Industrial Revolution,” British income per person (in constant 1970 U.S. dollars) rose from about $400 in 1760 to $430 in 1800, to $500 in 1830, and then leaped to $800 in 1860, a real per capita doubling in a century.

Adam Smith was right.  Nations can learn from their mistakes. They can take a licking and keep on ticking. Britannia may not rule the waves, but it still thrives. Nations that lag today can lead tomorrow.

This year’s theme at Freedom Fest was originally titled: “Is the American Dream Over?”  But I notice they’ve turned that title into a positive, with the new title being, “Discover the NEW American Dream.”

That’s progress.

I would say the American Dream is alive and well, but in my 35-years’ experience of active participation as host or moderator at over 100 investment conferences, the perma-bears will usually sway the crowd and gain the largest following, despite their repetition of the same failed warnings, year in and year out.

What the bears don’t understand, in my view, is that we are overwhelmed with an orgy of bad news every day. Most bad news fades into the rear-view mirror of time, barely denting mankind’s forward progress.

Stat of the Week:

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

223,000 New Payroll Jobs Added in June

by Louis Navellier

Labor Force ImageThe June payroll report, announced last Thursday, revealed that 223,000 new payroll jobs were created last month, slightly below economists’ consensus estimate of 233,000.  Unfortunately, April and May payrolls were revised down by 60,000, due most likely to the double accounting of temporary jobs.  Every month in 2015 has seen downward revisions to the previous month’s payrolls. To me, that signals a serious job-counting discrepancy at the Labor Department.  Perhaps they shouldn’t rush the release of these numbers so fast.

The other bad news is that the labor force participation rate declined to 62.6% in June and is now at the lowest level in 38 years!  A whopping 432,000 people fell out of the labor force in June. That helped to push the unemployment rate down to 5.3%, from 5.5% in May.  Also notable is that average hourly earnings slowed to a 2% annual growth rate in June, down from a 2.3% annual pace in May.

On Wednesday, the folks that actually do payroll processing, namely ADP, reported that private payrolls rose 237,000 in June, the highest total in six months.  The service sector added 225,000 jobs, while the manufacturing sector added 12,000.  Small businesses added 120,000 jobs in June, followed by medium businesses adding 86,000 jobs and large businesses adding 32,000 (rounded to the nearest thousand).

I should also add that the Labor Department said that the broader household employment survey reported a decline of 56,000 jobs in June, which is very disturbing. Overall, the Fed now has multiple reasons to postpone any key interest rate hike, since the details of the June payroll report were quite disappointing. Fed Vice Chairman Stanley Fischer has said that the job market must improve before the Fed considers raising rates. Specifically, the Fed has indicated that it will follow the wage growth rate as a key statistic.

Other Economic News is Mostly Positive

The rest of the economic news last week was largely positive.  On Tuesday, the Conference Board announced that its consumer confidence index rose to 101.4 in June, up from a revised 94.6 in May, well above the economists’ expectations of 97.5.  Furthermore, both the Conference Board’s present situation and expectations components continue to improve, which bodes well for improving consumer spending.

Consumer Confidence ImageOne factor that is helping to improve consumer confidence is that home prices continue to appreciate.  On Tuesday, S&P/Case-Shiller announced that home prices in its 20-city index rose 1.1% in April and 4.9% in the past 12 months.  Virtually all 20 cities monitored by S&P/Case-Shiller showed appreciation in the past month and 12 months, which is helping to lift household net worth and overall consumer confidence.

On Wednesday, the Institute of Supply Management (ISM) announced that its purchasing managers index (PMI) rose to 53.5 in June, up from 52.8 in May, significantly better than economists’ consensus forecast of 53.2.  Especially encouraging is that ISM’s employment component rose to 55.5 in June (up from 51.7 in May), while its new orders component rose to a very healthy 56 in June (up from 55.8 in May).

I hope you had a wonderful Fourth of July weekend.


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 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.

Marketmail Archives