S&P 500 Reaches a New High

S&P 500 Reaches a New All-Time High due to...a Weak Economy?

by Louis Navellier

May 18, 2015

The S&P 500 reached a third straight all-time high Monday. (The Dow also reached a new high, its first since March 2.)  The latest surge began last Thursday in response to some downbeat economic news – including flat retail sales in April – which may give the Fed more reasons to delay raising interest rates.

Oil Derrick ImageIn other news, OPEC shocked the commodity world by predicting that crude oil prices will not trade above $100 per barrel in the next decade.  Specifically, their draft report, reviewed by The Wall Street Journal last week, predicted that crude oil prices would rise to only $76 per barrel in 2025. This draft report is an astonishing admission that OPEC’s cartel is fractured and that non-OPEC producers are continuing to capture more market share.  Realizing that OPEC’s cartel is breaking apart, both Iraq and Saudi Arabia continue to boost their production to record levels to maintain their market share.

Additionally, last week China’s central bank cut its benchmark lending rate and one-year deposit rate by 0.25% to 5.1% and 2.25%, respectively.  Furthermore, the People’s Bank of China also allowed its member banks the leeway to offer up to 1.5 times the benchmark deposit rate, up from 1.3 before.  This move is expected to help China boost its exports, which have stalled in recent months.  This was China’s third cut in key interest rates in the past six months and is indicative that China is desperately trying to stimulate its troubled housing sector and domestic economy, since even imports have stalled.  Its goal of 7% annual GDP growth may need some additional stimulus, so more central bank actions may follow.

Euros ImageFinally, the biggest surprise is that Greece somehow emptied its account with the International Monetary Fund (IMF) to make a 750 million euro payment.  This was the second debt payment to the IMF in the past couple of weeks after the Greek government raided its state controlled companies and their pension funds.  These two IMF payments mean that Greece technically has not defaulted, but more cuts to pension recipients will likely be forthcoming. Greece has also been depleted of its important working capital.

Meanwhile, Germany and other euro-zone countries continue to play hardball with Greece. For any more financial aid to Greece to be forthcoming, all parties will likely have to agree on new austerity measures.

In This Issue

In Income Mail this week, Ivan Martchev will review the near-miraculous recovery of corporate earnings (from -4.7% to +0.1%) last quarter, along with his bearish outlook on oil prices.  In Growth Mail, Gary will examine volume trends (peaking after the 2008 crash) to make the case for long-term investing.  Then, I will return with a somewhat-dismal litany of the U.S. economic statistics released last week.

Income Mail:
Unexpected New Market Highs
by Ivan Martchev
A Second Leg Down in Oil May be Coming

Growth Mail:
Happy 223rd Birthday, Wall Street! Now What?
by Gary Alexander
“Investing in Crisis: Making Sense of the Madness”

Stat of the Week:
April Retail Sales Were Perfectly Flat (0%)
by Louis Navellier
Europe’s Deflation is being “Exported” to America

Income Mail:

Unexpected New Market Highs

by Ivan Martchev

While a lot of attention was focused on the first expected year-over-year decline in earnings since 2011, not as much attention was devoted to the actual climb of those reported earnings as the reports poured in.  With nearly all companies having reported, earnings ended up 0.1%. It is now statistically highly improbable for earnings to slip back into negative territory with just a few odd companies that have not reported yet.

So, how can the market make an all-time high when earnings are growing by just 0.1%?!

I think the magnitude of the earnings improvement did the trick. If you start the quarter with estimates of earnings falling -4.7% and you end up at +0.1%, that is a +4.8% improvement. In recent quarters, earnings estimates would start on the high side at the beginning of the quarter and then they would get cut substantially, in many cases by half. As quarterly reports came in, companies would begin reporting and would end up beating those low-ball estimates. But the earnings pattern in the first quarter of 2015 vs. previous quarters was turned upside down. Earnings estimates were cut too aggressively at the beginning of the quarter, so by the time most S&P 500 components reported, investors were relieved to see +0.1%.

For Q2 we are looking at a similar pattern of low expectations. According to FactSet Earnings Insight:

“For Q2 2015, analysts are predicting year-over-year declines in earnings (-4.3%) and revenues (-4.7%). Analysts do not currently project earnings growth to return until Q4 2015, and revenue growth to return until Q1 2016. In terms of earnings, analysts are currently predicting a decline of 0.5% in Q3 2015, followed by growth of 4.5% in Q4 2015. In terms of revenue, analysts are currently projecting a decline of 2.6% in Q3 2015 and no growth (0.0%) in Q4 2015, followed by growth of 6.1% in Q1 2016.  For all of 2015, analysts are projecting earnings to grow by 1.7%, but revenues to decline by 1.7%.”

This weakness in revenues is typical in deflationary environments. It is what the Federal Reserve is afraid of and trying to prevent from worsening. Yes, margins can expand if commodity markets decline but they cannot expand indefinitely so the Fed needs and wants higher inflation for the economy to keep humming along. This is why rate hikes in the present global deflationary environment feel wrong despite the fact that the Federal Reserve has been preparing the markets for months for a single rate hike possibly coming in 2015.

When I was looking through the earnings data, I came upon these two charts of the forward and trailing 12-month P/E ratios for the S&P 500.

Price Earnings Ratio for Standard and Poor's 500 Chart

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

According to FactSet, the current 12-month forward P/E ratio is 16.8, well above the 5-year average (13.8) and 10-year average (14.1).

We are similarly elevated above the 5- and 10-year averages for trailing earnings (see below).

Trailing Standard and Poor's 500 Price Earnings Ratio Chart

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

My point is not that the market is overvalued – although it is certainly not cheap. My point is that trailing and forward earnings multiples look very different. At major market turning points stock analysts, who are primarily bottom-up investors, on average miss the big picture. They seem to be unable to separate the forest from the trees.  So, on average, I do not expect the next big earnings compression to show up in consensus estimates ahead of time, based on the consensus earnings estimates patterns I saw in the previous bear markets in 2000-2002 and 2007-2009.

A Second Leg Down in Oil May be Coming

Based on the trading pattern of West Texas Intermediate (WTI) crude oil front-month futures, the 2015 March bottom in this most important energy commodity benchmark is beginning to look like the previous major bottom in 2009. Three months of aggressive selling were followed by three months of chopping around, where the rate of change of the decline flattened out. And now we have a rebound.

Crude Oil WTI - Monthly OHLC Chart

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

Here is why I think this oil price rebound will fail and could completely reverse in 2015.

Crude oil production has kept rising as prices have fallen. When oil prices topped out in June of last year, U.S. production was running at 8.67 million barrels per day (mbd). After oil prices were cut by more than half, U.S. oil production kept rising throughout the decline and now stands at 9.41 mbd.

The oil price gets cut in half and production keeps rising?!

United States Field Production of Crude Oil Chart

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

The rebound in oil prices is seasonal as stockpiles went down after demand naturally picked up in March. Given that production is forecasted to keep rising and reach 9.65 mbd on average in 2015 – an all-time high – I have great difficulty seeing how oil prices will continue to rally. A lot of this domestic production is high-cost and financed with junk bonds. Some of those domestic producers have to keep producing in order to keep making their debt payments. Ironically, if prices fall – as I think they will – there will be an incentive to produce even more to service all this debt.  We may crack the 10 mbd level in domestic oil production before we see the final low in the price of oil.

Crude Oil WTI - Daily Nearest OHLC Chart

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

Unless something unpredictable happens geopolitically, we may make an annual high in WTI futures, if we have not made it already. (Last year, the high came in June.) Provided the Iran nuclear deal goes through (however controversial that may be politically in the U.S.), Iran may also be dumping oil on global markets at precisely the wrong time, with U.S. production still rising. That creates the ideal condition for the price of oil to break below $40 per barrel, which I think is coming later in 2015.

This raises interesting questions for investors in the energy sector. First off, I feel that the dividends of integrated oil companies are safe in the sense that as one part of the business makes less money due to the decline in the price of oil, another part (like petrochemicals and refining) makes more money as the price of oil is an input.

Pipeline, storage, and processing companies are doing great as record volumes mean record cash flows for them, irrespective of the price of oil. Their share prices have not risen despite record profitability coming with record production as their valuation multiples have been depressed due to uncertainty in the sector. But the larger point is that even if record profits do not mean record share prices for pipeline, storage, and processing companies, be they MLPs or regular corporations, these record profits may provide  secure dividends and distributions. It is the leveraged upstream high-cost producers that will find out that it will be difficult to make coupon payments in 2015 and 2016. If we see a $30 oil price, that will become a very big problem.

Growth Mail:

Happy 223rd Birthday, Wall Street!  Now What?

by Gary Alexander

“We the Subscribers, Brokers for the Purchase and Sale of the Public Stock, do hereby solemnly promise and pledge ourselves to each other, that we will not buy or sell from this day for any person whatsoever, any kind of Public Stock, at a less rate than one quarter percent Commission on the Specie value and that we will give preference to each other in our Negotiations.  In Testimony whereof we have set our hands this 17th day of May at New York, 1792.”

– The Buttonwood Agreement, which created the New York Stock Exchange (NYSE) on May 17, 1792

When a cartel of 24 brokers and merchants signed this pledge under a buttonwood tree on a walled street in lower Manhattan, they basically agreed to put a floor under their brokerage fees.  That floor eventually gave way to strict SEC guidelines which mandated “fixed commissions” which averaged over $100 for 100 shares before the discount broker revolution broke the cartel 40 years ago this month on May 1, 1975.

Wall Street ImageHow a price fixing scheme lasted 183 years in the “land of the free” remains a mystery.  Along the way, some “curbstone brokers” traded shares outside NYSE’s doors.  One such curbside market, The American Stock Exchange (ASE), founded in 1908, was known as “the curb exchange.” By mid-1929, the “curb” market traded more shares than the Big Board (NYSE) for the first time.  Could a big crash be far behind?

As long as the cartel held sway, trading volume was understandably low.  In 1940, only 207.6 million shares traded on the New York Stock Exchange for the full year, less than a million shares per trading day.  In 1965, 50 years ago, there were only 2171 trades of 10,000 shares or more for the entire year, representing only 3.1% of reported volume that year.  Just 30 years later, by 1995, there were 1,963,900 such big trades, representing 57% of total volume. (By then, lower broker fees had spurred more sales.)

After discount brokers were free to enter the hallowed halls of the Big Board in 1975, volume picked up:

  Average Daily Share Volume (in Millions), 1974-80  
  Source: Statistical Abstract of the United States.  
  Year     NYSE     ASE     Total  
1974 13.9 1.9 15.8
1980 44.9 6.4 51.3

 

Trading volumes continued to soar until the crisis of 2008, but trading volume has declined since then:

Standard and Poor's 500 Daily Volume Chart

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

High-frequency trading (HFT) also peaked around 2008-09.  Since then, total volume and HFT trading have been declining gradually.  Some investors may have been scared away from stocks but perhaps even more investors are investing for the long run rather than answering the siren song of HFT or day-trading.

High Frequency Percentage of United States Equity Shares Traded Chart

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

“Investing in Crisis: Making Sense of the Madness”

Speaking of 2008-09, I was just cleaning out some of my old stacks of business magazines and I ran across the December 22, 2008 issue of FORTUNE – their annual predictions issue for 2009.  In a section entitled “Investing in Crisis,” FORTUNE interviewed several market gurus in a feature entitled, “Making Sense of the Madness.” They “asked eight of the market’s sharpest thinkers to put a historically bad year in perspective and offer guidance on what’s ahead.”  (During the time of these interviews, the Dow was ranging from 7500 to 8500, after one of the worst months in stock market history – October of 2008.)

These eight gurus are indeed well-known – superstars of the financial world, then and now: Nouriel Roubini, Bill Gross, Robert Shiller, Sheila Bair, Jim Rogers, John Train, Meredith Whitney, and Wilbur Ross.  But as I read through their outlooks, I was struck with how far off base most of them were.  First off, “Dr. Doom” Nouriel Roubini, began by saying, “We are in the middle of a very severe recession that’s going to continue through all of 2009…there’s no going back and there’s no bottom to it.” His advice? “For the next 12 months, I would stay away from risky assets.  I would stay away from the stock market.”

Most of the other seven gurus were nearly as gloomy as Dr. Doom.  Bill Gross, then of PIMCO, said that investors would need to “be content with single-digit returns in future years.”  Yale economist Robert Shiller said the stock market “could easily fall by half again.”  Commodities guru Jimmy Rogers said that “stocks are still not attractive.  Historically, you buy stocks when they’re yielding 6%....For stocks to go to a 6% yield without big dividend increases, the Dow will need to go below 4000.”  Oppenheimer’s Meredith Whitney said, “I think the overall economy will be worse than people expect.”  The other three gurus expressed a more balanced weighing of pros and cons, but not one of these gurus was a raging bull.

But in the same “Investing in Crisis” issue of FORTUNE in late 2008, editor Geoff Colvin interviewed Charles Schwab, beginning with this teaser: “When will the market roar back? Charles Schwab, who’s had a few comebacks himself, says a lot sooner than you think.”  Schwab sounded like Joe Namath, who guaranteed an underdog Jets win in Super Bowl III, when he said: “It will get better. I guarantee it.”

Schwab said that stocks could go down further – and they did, bottoming in early March 2009 – but he quickly added that “after 18 months of decline, the equity markets are really, really cheap for the long term….You could see the Dow or the S&P 500 bouncing back 40% or 50% – the Dow up 3,000 points.”

As it turns out, the Dow shot up from a low of 6500 in March 2009 to 9500 in August (+3000 points) and then to 10,580 by December, and the S&P 500 rose by 67% from its March 2009 low to the end of 2009.

In this late-2008 interview, Schwab favored long-term investing over trading: “Over the 35 years I’ve run this company, I’d say that 95% of the clients are long-term investors….Yes, we do love people who trade like crazy – it creates commissions – but it’s really not the assured way of making long-term returns.”

In early 2009, I made a similar prediction about the coming market recovery. In April 2009, I gave a talk at the Atlanta Investment Conference about how market declines of the recent severity (down 55% in 17 months) often precede equally strong and rapid recoveries. I repeated that prediction for Navellier.com in May of 2009 in a piece entitled, “The Worst Crash Since 1929 Implies the Best Recovery since 1932.”

That headline was so controversial that it prompted USA Today financial reporter Matt Krantz to call me for an interview.  “How can you be so sure?” he asked me.  At the time, my prediction sounded too good to be true.  The Dow was still at just 8285 when he called me. The bull market was still fragile, only two months old, but I laid out the record of earlier mega-crashes in 1929-32, 1974, 1987, and 2002.  Each gave birth to historically strong recoveries – a restoration to the mean. Huge crashes preceded huge recoveries.

Less than two years later, on February 18, 2011, the S&P 500 closed at 1343, doubling its 666 low. The Wall Street Journal called it “the fastest doubling since 1936.” And that’s just the large (big-cap) index.  Small stocks did better: The S&P 400 MidCap and 600 SmallCap indexes were up 139% in two years.

There were some scares along the way, like the “Flash Crash” of May 6, 2010, five years ago.  We have seen numerous articles recently about the person everyone wants to blame for this momentary decline, but such a decline does not interrupt the sleep of most long-term investors. To most investors, the behavior of traders is almost irrelevant.  Traders provide liquidity, but studies in “behavioral economics” have shown that most traders buy too high and sell too low to beat the long-term averages.  For instance, DALBAR reported last year that the S&P 500 had returned 11.11% over the previous 30 years vs. 3.69% per year for the average individual investor. If you extrapolate those numbers, that’s a 2,258% gain in the S&P 500 in 30 years vs. just 197% for traders. The two biggest problems are: “trades are made at the wrong time – investors tend to buy high and sell low. The other problem is that trading costs tend to eat into returns.”

I’m glad we’re not paying $100 per trade any more.  Thank you, Charles Schwab (and other discounters), but the biggest problem for most investors – in my view – is to trade too often, and often at the wrong times.

Stat of the Week:

April Retail Sales Were Perfectly Flat (0%)

by Louis Navellier

Consumers ImageThe economic news last week was mostly downbeat.  The biggest news happened on Wednesday, when the Commerce Department announced that retail sales were unchanged in April. Gasoline and auto sales declined 0.7% and 0.4%, respectively.  Excluding vehicle sales, retail sales rose only 0.1%, well below economists’ consensus estimate of a 0.4% rise.  Even more disturbing, retail sales have risen only 0.9% in the past 12 months, the slowest annual pace since October 2009.  Excluding gasoline prices, retail sales rose 3.6% in the past 12 months, but the consumer’s reluctance to spend their gasoline windfall on other items is perplexing economists. In addition, the Fed reported that consumer use of credit cards in the first quarter dropped by the largest amount in the past four years. This may explain why retail sales remain so anemic.  In April, some relatively bright spots were Internet retailers (up 0.8%), restaurants (up 0.7%), and home-improvement stores (up 0.3%), so there are still some areas where consumers are spending more.

On Friday, the Fed reported that industrial output declined 0.3% in April, which was essentially in line with economists’ consensus expectations.  However, downward revisions in previous months came as a big surprise.  As a result, industrial production has now declined for five months in a row, due largely to a strong U.S. dollar hindering exports, along with cutbacks in the energy sector.   Due to ongoing problems with industrial production, most economists are expecting less than 2% annual GDP growth this year.

The other “glitch” announced on Friday was that the University of Michigan/Reuters’ preliminary consumer sentiment index plunged to 88.6 in May, down from a final reading of 95.9 in April.  This is undoubtedly a big concern, since consumer spending accounts for approximately two-thirds of overall GDP growth.  Anemic wage growth and consumer reluctance to spend on big ticket items, like housing, continues to be a drag on GDP.  Many economists were hoping that the slowdown in consumer spending was attributable to severe winter weather, but the recent consumer caution may be a longer-term trend.

Europe’s Deflation is being “Exported” to America

On Thursday, the latest evidence of deflation was the Labor Department’s April Producer Price Index (PPI), which reported that wholesale prices declined 0.4% in April, due primarily to lower food (down 0.9%) and energy prices (down 2.9%).  The price of wholesale goods declined 0.7% in April, while the price of services rose 0.1%.  Excluding wholesale food and energy prices, the core PPI declined 0.2%.

The PPI has now fallen in five of the last six months.  In the past 12 months, the PPI has declined 1.3%.

European Central Bank ImageSpeaking of deflation, European Central Bank (ECB) president Mario Draghi said on Thursday that the ECB’s vast stimulus efforts will remain in place “as long as needed,” i.e., until officials are confident that they will meet their inflation objective on a sustained basis. Draghi played down concerns that the ECB’s policies are widening the gap between the rich and poor.  Translated from central bank mumbo jumbo, he was using the “widening wealth gap” as a new excuse to print money, which means that the ECB may be pumping for eternity.  Interestingly, deflation persists in the euro-zone, despite improving GDP growth; so it’s likely that all of the ECB’s money pumping will fuel even more long-term deflation and ultimately widen the wealth gap, since financial assets often outperform cash in a deflationary market.

In summary, (1) negative first-quarter GDP growth, (2) slowing retail sales, (3) a slowdown in industrial production, (4) a grumpy consumer, and (5) the fact that deflation refuses to go away will likely cause the “data dependent” Federal Reserve to delay raising key interest rates at any time this year – in my opinion.


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

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