Interest Rates Remain Low

Interest Rates Remain Low (Here and in Europe), Fueling Share Buy-backs

by Louis Navellier

September 15, 2015

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

Euro Zone Flag ImageOne factor keeping stocks on the recovery track is the low interest rate environment, which will likely continue after the Fed’s meeting this week.  Even if the Fed eventually raises rates, euro rates are still low. Last Thursday, Apple announced that it was returning to the euro-zone bond market to sell 9-year debt at a 1.4% yield and 12-year debt at a 2.05% yield to raise over $2 billion to continue to buy back its outstanding stock.  This is the third time that Apple has sold euro-zone debt in the past several months and the company’s stock buy-back program now stands at $140 billion, up from $90 billion a few months ago.  Apple is just one of many U.S.-based multinational companies that are raising billions in euro-zone debt to take advantage of ultra-low interest rates to fund their stock buy-back programs, which naturally bodes well for the long-term health of Apple and other companies aggressively buying back their shares. (Louis Navellier does not currently own a position in AAPL. Navellier & Associates does currently own a position in AAPL for some client portfolios.)

Despite a rebound in global stock markets, including gains of over 2% in most major U.S. stock indexes last week, I hate to be a party pooper but I still expect that the S&P 500 will try to retest its August 24th lows in the upcoming weeks.  From my experience, the stock market likes to make sure that the recent low was really “The Low” by testing that low on higher volume.  Since Labor Day, we’ve seen much higher stock market volume since most Wall Street professionals are now back from their summer hiatus.

Even if the S&P 500 retests its August 24th lows later this month, I am sticking with my previous advice that, in my opinion, our best buying opportunities might be on September 16th before the Fed’s press conference, in the last week of September during quarter-end window dressing, and in the week before Thanksgiving.

In This Issue

Income Mail:
The Fed’s Great Monetary Dilemma
by Ivan Martchev
Deflationary Implications for the Treasury Market

Growth Mail:
Fear of the Fed is Way Overblown
by Gary Alexander
We’re Still “Below Par” for the 21st Century
September 17: Markets Open after a Major Terrorist Attack
The Trial of (Steve) Jobs

Stat of the Week:
Euro-zone GDP Grows 1.8% (Annual Rate) in First Half
by Louis Navellier
Is China’s GDP Growing, or Falling?
Will Oil Head Down to $20 Next?

Income Mail:

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

The Fed’s Great Monetary Dilemma

by Ivan Martchev

“To hike, or not to hike, that is the question” is the Shakespearean thought that I like to think haunts Janet Yellen at night.  It probably haunted Ben Bernanke before her with a slight reformulation. As the Fed kept rates near zero after the crisis of 2008, Bernanke may have kept asking: ‘Will we ever hike, or won't we?”

Central bankers are human beings and as such they make mistakes – all the time. They may be very smart and they may be prone to get Ph.D.’s in monetary economics from MIT, but in the end their policies have been shown to create bubbles, which have tended to pop spectacularly. Then they end up scurrying, trying to figure out how to reflate the busted-bubble economies that they have tried to manipulate. I have seen this scenario repeated more than once, and given what I know about central bankers and their monetarist views, I think the likelihood is that we will see it repeat again, more than once.

Euro Dollar - Daily Line Chart

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

Be that as it may, no one can be sure what will happen on September 17. The Fed originally telegraphed its intent to hike the Fed funds rate, signifying “Mission Accomplished,” just as a recent president did (see CNN October 29, 2003: ”White House Pressed on 'Mission Accomplished' Sign”) by landing on an aircraft carrier. (Don't remind the Iraqis living in Mosul about that accomplishment.)

I agree with the September federal funds (ZQU 15 in green) and euro-dollar futures (GEU15) where both are flirting with all-time highs and indicate the very small chances of such a rate hike on September 17. Both the euro-dollar and fed fund futures show some likelihood for a rate hike in December, but pretty slim chances for a hike before then. Both the euro-dollar and fed funds futures are priced at 100 minus the expected interest rate they forecast at contract settlement, the difference being that the fed fund futures forecast the fed funds rate while euro-dollar futures forecast LIBOR, or the London Interbank Offered Rate, which is heavily correlated to the fed funds rate but tends to be a little higher. LIBOR, of course, is the infamous wholesale funding interest rate for banks which has been in the middle of more than one banking scandal of late.

London Interbank Offered Rate (LIBOR) Chart

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

The thing about LIBOR is that it is supposed to be a market-cleared rate, when it is not manipulated of course, as numerous regulatory investigations have shown; so at times of great uncertainty between counterparties it can move in the opposite direction of the fed funds rate. One such LIBOR spike pictured above happened in the old euro-zone crisis in 2011, which is not yet resolved, despite the Hellenic fiscal straightjacket we witnessed this summer. Another even more spectacular LIBOR spike happened at the time Lehman Brothers failed – or was pushed over the cliff, depending on one’s point of view. Such LIBOR spikes can make for truly fascinating euro-dollar futures trading, provided that most of the time they go hand-in-hand with fed funds futures.

The reason why the Fed should not be hiking interest rates this week is that we have a massive global deflationary problem. The Chinese real estate and stock markets have collapsed and I think that means that this time the Chinese economy may have a bad recession or a real depression, courtesy of debt overhang that has been piling up for years and was primarily used in many unproductive ways.

I have done the calculations of China’s debt more than once using data from Brookings Institution estimates in Income Mail and if one adds shadow banking leverage, the Chinese total debt to GDP ratio is close to 400%. This is a recipe for disaster and we may yet see a major economic unraveling. The Chinese economy is about $11 trillion in size, so the repercussions are being felt throughout Asia and Latin America right now.

Australian Dollar versus United States Dollar - Monthly OHLC Chart

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

The Chinese have nurtured strong trading relationships with their Asian neighbors in order to increase their influence in the region. So in the case of Australia it may be commodities that are the #1 export to China, but in the case of South Korea and Japan it is high technologies and manufactured goods. When one's #1 trading partner is imploding in the economic sense of the word, the deflationary shock may be rather spectacular. The Australian dollar has already managed to trade down to 69 cents in early September; but I am afraid that, given what is going on with China, it may go to an all-time low against the U.S. dollar and flirt with 50 cents, which is quite a bit lower than the present level. The same is true for the New Zealand dollar and all of the other so-called “commodity” currencies.

United States Dollar versus Brazilian Real - Monthly OHLC Chart

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

The Brazilian real, which is flirting with 4:1 to the dollar right now, was flirting with 1.50-to-1 as recently as 2011. If there is an economy dependent on commodity exports and that currency has a managed or a free float, that currency is down against the U.S. dollar. Brazil’s credit rating also got downgraded to junk last week and President Rousseff's future is uncertain. Ironically, if commodity prices were at all-time highs rather than flirting with 40-year lows, her popularity as President would likely be soaring.

The question that begs to be asked is: Does the Fed want to make this precarious global economic situation even more precarious with premature rate hikes?

I think the answer should be no.

Deflationary Implications for the Treasury Market

In the middle of the worst global deflationary shock since the 1930s, I am baffled to find out in my conversations with investors that they think interest rates are going up. I truly do not understand why they think that. I think long-term interest rates are headed lower in 2016.

I used to think that the Great Financial Crisis of 2008 – catalyzed but not caused by the Lehman collapse – was the worst deflationary shock since the 1930s. Deflation so far in the U.S. has been averted. But what is going on in China and Latin America, in large part due to the end of the commodity super-cycle, which is in part caused by China, is a bigger deflationary shock. We have taken out the Lehman lows in the CRB Commodity index and we are now below those Lehman lows, despite a small rebound driven by a short squeeze in oil futures as discussed last week.

Commodity Research Bureau Index Chart

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

I think we may take out the 40-year support in the 180-200 range on the CRB Index in 2016 as I expect China’s economy to deteriorate and drag down its Asian and Latin American trading partners, including Russia, along with it. Oil may have a geopolitical spike if the Russians get involved in Syria, but based on pure supply and demand I would not be surprised if it ultimately does decline under $20/bbl, as China implodes.  How can U.S. long-term interest rates be headed higher in this deflationary environment?

Ten Year Treasury Note - Weekly OHLC Chart

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

I think the 10-year note Treasury yield will fall below 1% in 2016 because of all of the above considerations, which should be good for long-duration bonds and more conservative interest-rate sensitive groups in the market, like utilities. I am starting a countdown as to how many days it would take to get there, but my gut feeling is that it will be less than 365 as of the publication of this Income Mail.

When QE started, I estimate that 99% of investors did not understand how it worked and why it ended (or at least is not expanding). The Federal Reserve balance sheet is still “pregnant” and we still have residual QE policies in place, but I contend that anywhere between 95% and 98% of investors still don't understand how it works. The fed funds rate going up (or not) this week does not mean quantitative tightening. The fed funds rate is less relevant than the size of the Fed’s balance sheet and the excess reserve interest rate which has, on purpose, been above the fed funds rate as QE has been ongoing.

I don't believe we will have quantitative tightening in 2016, given what is going on in the world.

Growth Mail:

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

Fear of the Fed is Way Overblown

by Gary Alexander

Nobody knows for sure what the Federal Open Market Committee (FOMC) will decide when they meet this week, but more and more pundits are coming around to our way of thinking – that the Fed will NOT raise rates this week.  Instead, we believe the Fed will kick the can down the road one more time before perhaps raising rates 0.25% (maybe in a “one and done” manner) in December.  (For more evidence, see “WSJ Survey: Most Economists Predict Fed Will Stay on Hold in September,” WSJ, September 11, 2015.)

Market Umbrella ImageNo matter what the Fed does this week, the fears of a market crash when they finally act are overblown.  According to the New York Federal Reserve Bank, the last time period when the Fed raised rates – from June 30, 2004 to June 30, 2006 – the Fed raised the fed funds rate at each of 17 consecutive FOMC meetings.  During that time, the S&P 500 gained 11%.  These rate increases may have slowed the pace of the bull market’s growth, but they didn’t end the last bull market.

At the start of the 2003-7 bull market the fed funds rate was 1.25% in early 2003.  It was then lowered to 1.00% as of June 25, 2003. It stayed that low for over a year, despite a brisk recovery and a rising stock market. (Some critics say that these low rates were the kindling fuel of the real estate market bubble.)

When the Fed raised rates in 17 consecutive FOMC meetings, the stock market just kept rising. What’s more, these 17 rate increases took place under two Fed chairmen. Under Alan Greenspan (who was Fed chair from August, 1987 to January, 2006), the FOMC raised rates at 14 straight Fed meetings. Those policies continued under the new Chairman Ben Bernanke during FOMC meetings on March 28, May 10, and June 29, 2006.  Then, the fed funds rate stayed at 5.25% for over a year, until August 17, 2007.

If you look at the entire four year period of rising rates, the S&P 500 rose 54%. At the same time, gold rose 88%, putting a lie to the canard that gold falls as interest rates rise (since gold offers “no interest”).

 Source: NY Federal Reserve for fed funds rate; Yahoo Finance for S&P 500; 
 Kitco.com for Gold (London pm fix)
  Date    Fed Funds Rate   S&P 500   Gold 
June 30, 2003 1.00% 974.50 $346
June 30, 2004 1.25% 1140.84 $396
June 30, 2005 3.25% 1191.33 $437
June 30, 2006 5.25% 1270.20 $614
June 30, 2007 5.25% 1503.35 $651

 

On December 16, 2008, the Fed lowered the fed funds rate to a zero-to-0.25% range. If the Fed fails to raise key rates this week, then their next meeting with a Summary of Economic Projections and press conference will fall on December 15-16, 2015 – the 7th anniversary of ZIRP (Zero Interest Rate Policy).

Fear not!  A quarter-point increase from near-zero rates should in no way kill this economy or market.

We’re Still “Below Par” for the 21st Century

Another common fear is that this bull market has risen too far too fast.  Could we be near the popping of a historic “bubble”?  I have consistently responded by saying that bull markets do not die from old age but from changing fundamentals.  We’ve seen a historically strong bull market, to be sure, but we’re still subpar for the 21st Century.  In my first Growth Mail in 2015 (see archives for January 6), I compared the first 15 years of the 21st century to the last 30 years of the 20th to show how slow recent growth has been: 

2000-14: Subpar Market Growth
 Source: The Almanac Investor, using year-end prices 
  15-Years    S&P Gains 
1970-84 +81.7%
1985-99 778.5%
2000-14 +40.1%

 

Instead of being overly frothy, the S&P 500 gained only 40% from 2000 to 2014, barely one-20th of the previous 15 years, and less than half of the dismal standard set from 1970 to 1984.  Since the end of 2014, of course, the market is down by most measures, so we are still far below par for the 21st century.

The pessimists who want us to worry about the huge gain in the S&P 500 since March of 2009 are taking this bull market out of context. They forget to tell you about the Lost Decade from 2000 to 2009, when the S&P fell by over 50%.  From a longer-term perspective, we’re still climbing out of a huge black hole.

 Source: Yahoo Finance
  Stock Index    August 31, 2000   August 31, 2015   15-Year Gain   Per Year 
DJ Industrials 11,215.10 16,528.03 +47.4% +2.6%
S&P 500 1,517.68 1,972.18 +29.9% +1.8%
NASDAQ 4,206.35 4,776.51 +13.6% +0.9%

 

Now, I see from this weekend’s Barron’s (“The Wisdom of a Nonconformist,” September 12, 2015) that Joe Rosenberg, 82, long-time Chief Investment Strategist of Loews Corporation, with a lifetime of experience in every bull and bear market since the 1950s, agrees with my long-term perspective of the last 15 years.

Rosenberg begins by saying,I’m long-term bullish. Equities over the past 15 years have generated meager returns. To those of us who believe in reversion to the mean, this suggests that the next 15 years will probably offer much higher returns. The trailing 15-year return of the S&P 500 is at an extreme, showing just a 3.8% annualized return, which is even lower than it was in the 15 years that ended with the bear market of 1974…. I look at the equity returns since 2000 as a reason to get more invested in stocks.”

Standard and Poors 500 Total Return Index Chart

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

Economist Ed Yardeni is also a skeptical debunker of scary bear market scenarios.  In his September 8, 2015 Morning Briefing, Yardeni wrote: “The bear case is fairly compelling. However, it seems always to be compelling because it plays to our basic instinct of fear, which can often trump greed – the other basic instinct driving stock prices – fairly quickly and unexpectedly. This could turn out to be a good year for bearishly inclined chart technicians, but that’s after getting it mostly wrong for the past six years.”

A good question for the perma-bears would be: “If you were wrong in 2009, 2011, or any other key point in this current bull market, then why should we believe your bearish reasoning now?”  In my view, bulls may suffer corrections, but they win in the long run, while the perma-bears are doomed to underperform.

This Week in Market History 

September 17: Markets Open after a Major Terrorist Attack

On Monday, September 17, 2001, six days after the 9-11 attack on America, Wall Street re-opened to a selling panic.  The DJIA fell 685 points (-7.13%), the largest daily point drop to that date.

Wall Street also reopened on September 17, 1920, the day after a bomb exploded on Wall Street, killing 38 and wounding hundreds.  A wagon loaded with a bomb containing dynamite and 500 pounds of small iron weights parked in front of 23 Wall Street, the headquarters of J.P. Morgan & Co. The bomb exploded at 12:01, as many employees emerged for their lunch break. Fears of “anarchy” (the term for random terrorism then) were sweeping the land, so this bombing was labeled as an anarchist attack on capitalism.

Wall Street Bombing Spectators Image

Soldiers and police restrain terrified onlookers after the bombing of Wall Street on September 16, 1920.
(Photo credit: New York World-Telegram – now stored in the Library of Congress in the public domain.)

This anarchist attack on Wall Street exacerbated what was already a long and painful bear market, as the DJIA fell from nearly 120 in late 1919 to 63.9 on August 24, 1921, in the long-feared “postwar crash.”  But the anarchists couldn’t kill capitalism.  The DJIA grew from 63.9 in 1921 to 381 on September 3, 1929.

The Trial of (Steve) Jobs

On September 18, 1985, at an Apple board of directors meeting, Apple co-founder Steve Jobs announced that he was resigning to form a new company, NeXT.  It is clear from his letter sent to the board on the previous day that he was being forced out of the company. Earlier in the year, he had been demoted by the CEO that he had hand-selected, John Sculley.  The tables turned 12 years later: On September 16, 1997, Steve Jobs returned to lead his brainchild, Apple (AAPL).  The 12-year trial of Jobs ended on this date.

On the day that Jobs returned to Apple, the company’s shares were valued at $0.72 (adjusted for splits and dividends paid since then, according to Yahoo).  Shares reached an adjusted $50 per share at the time Jobs died on October 5, 2011.  Today, under CEO Tim Cook, Apple is the biggest company on the Big Board, valued at $650 billion (at $114 per share), even after a 15% correction from its peak price last April.

Yacht ImageThe Forbes list of the 400 richest Americans comes out in late September.  The first issue, published this week in 1982, listed shipping magnate Daniel K. Ludwig as the richest man in America, with Getty Oil heir Gordon Getty at #2. On September 17, 1984, in the third Forbes 400, Getty was promoted to #1, with a hoard of $4.1 billion. The first few Forbes lists looked like a social register, with inheritors dominating the creators of wealth.  Today, it is loaded with younger entrepreneurs, while Getty is now worth just $2.1 billion. That’s OK with him. He is a composer and patron of the arts. His passion is music, not oil wells. (Gary Alexander does not currently own a position in AAPL. Navellier & Associates does currently own a position in AAPL for some client portfolios.)

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.*

Euro-zone GDP Grows 1.8% (Annual Rate) in First Half

by Louis Navellier

One reason that stock markets around the world rebounded was that Eurostat announced on Tuesday that euro-zone GDP grew 0.4% in the second quarter (a 1.6% annual pace), up from its previous estimate of 0.2% growth.  Additionally, GDP growth for the euro-zone was revised up to a 2% annual pace, so the first half growth rate is the average of those two rates, 1.8%.  As with China, there has been concern in the euro-zone that slowing worldwide GDP growth will slow the demand for exports in the euro-zone.  However, based on purchasing manager surveys, export demand remains steady in the euro-zone, so third-quarter GDP growth is expected to hold relatively steady.  As evidence of strong export demand, mighty Germany announced on Tuesday that its trade surplus hit a record high in July due to rising exports.

Is China’s GDP Growing, or Falling?

Container Ship ImageOn Tuesday, China announced that its exports declined 5.5% in August vs. the same month a year ago.  In July, China’s exports declined 8.3% during the same 12-month period.  Over the past 12 months, China’s imports declined 13.8% vs. an 8.1% cumulative 12-month decline in July.  Despite these dismal figures, CNBC reported on September 6 that China’s Finance Minister Lou Jiewi announced that China’s GDP growth would remain at a 7% annual pace for the next four to five years and added that the stock market correction was nearly finished.

On Wednesday, Reuters reported that China’s National Bureau of Statistics announced that it plans to change the way it calculates GDP to bring its calculation more in-line with global standards commencing in the third quarter.  Officially, China’s statistics bureau said that it is adopting the International Monetary Fund’s Special Data Dissemination Standard.  Unofficially, many international observers are worried that China may “fudge” its future GDP calculations in an attempt to create the illusion of steady GDP growth.

Japan’s stock market surged an amazing 7.71% on Wednesday, based on the Nikkei, which posted its largest one-day percentage gain in seven years.  Fueling the Japanese rally was a comment from Japan’s Ministry of Finance that it would speed up the reform of its tax system, boost infrastructure spending, and accelerate the use of its public/private partnership model to facilitate overall economic growth.

Will Oil Head Down to $20 Next?

The most shocking news last week was a report from Goldman Sachs on Friday that the global crude oil supply glut is bigger than expected and could push crude oil prices as low as $20 per barrel.  The timing of this report is interesting, since crude oil prices soared over 24% in late August and early September.

Crude Oil Rocker Pump ImageGoldman Sachs now expects West Texas Intermediate crude oil to average $45 per barrel in 2016, down from their previous guidance of $57 per barrel.  Additionally, Goldman Sachs now expects that Brent light sweet crude oil will average $49.50 per barrel in 2016, down from their previous guidance of $62 per barrel, due to Iran boosting its crude oil production due to the removal of international sanctions.

Clearly, deflation is alive and well in the oil patch.


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.

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