Standard and Poor's Stocks

S&P Stocks Still Offer More Income than 10-Year Treasury Bond

by Louis Navellier

April 20, 2015

The correction last Friday was just an excuse to sell, since (1) China permitted short selling, (2) Greece is on the verge of defaulting again, and (3) New York traders love to sell on Fridays to get an early start on the weekend and the gorgeous spring weather.  It is important to note that high-dividend stocks rallied on Friday, so money is not leaving the stock market. Instead, it is flowing toward high-dividend stocks. With the S&P 500’s average dividends yielding more than the 10-year Treasury (1.87%) and the 10-year German bund sinking under 0.1% last week, investors continue to seek higher yields in the stock market.

European Central Bank Buildings ImageGermany’s yield curve is now predicted to be negative out to January 2024.  The consensus among bond traders is that the German 10-year bund may soon carry a negative yield if the European Central Bank (ECB) continues quantitative easing and traders run out of places to park their money.  Marie Diron of Moody’s wrote last Tuesday that “even if the pace of decline in bond yields slows in the remainder of the year, the ECB could run out of eligible bonds from some governments by the turn of the year,” adding that “the QE program could exhaust the supply of eligible bonds from the governments of Germany, the Netherlands, Finland, France, Austria, Belgium, Ireland and Portugal.”

Speaking of the ECB, at a news conference on Wednesday, ECB President Mario Draghi was showered with confetti by a protester who jumped on a table as he was making his opening remarks.  The protestor repeatedly shouted, “End the ECB dictatorship.”  Recent protests against the ECB are blaming the central bank for onerous austerity measures, especially in Greece.  In March, there were 10,000 protestors at the opening of the new ECB headquarters and at least 350 protestors were arrested. On Thursday, the Financial Times reported that Greek officials had quietly approached the International Monetary Fund (IMF) to push back the deadlines for loan repayments, but their request was apparently denied; so the ECB is becoming the scapegoat for everything and anything that goes wrong economically in Europe.

In This Issuee

We had a pretty good April in the stock market – until last Friday, that is.  In Income Mail, Ivan Martchev will show how the latest “Grexit” fears have spooked traders around the world.  Ivan will handicap the chances for another Greek debt default or whether some last-minute patches can save the Greeks again.

In Growth Mail (and in my Stat of the Week column), Gary Alexander and I will dissect the latest retail sales figures (and other indicators) to show that it’s probably a mistake to give up on the U.S. consumer.

Income Mail:
How I Learned to Stop Worrying and Love the Bonds
by Ivan Martchev
Markets Decline over Renewed Grexit Fears
From 8 Basis Points to Zero?

Growth Mail:
Never Underestimate the American Consumer
by Gary Alexander
Six Reasons Not to Worry about Slow Retail Sales
Consumers are More Confident – Even Though Investors Aren’t
A Century of Trouble …. And a 32,555% Rise in the Dow

Stat of the Week:
Retail Sales Finally Rise in March
by Louis Navellier
Some Good News (At Last) from Europe

Income Mail:

How I Learned to Stop Worrying and Love the Bonds

by Ivan Martchev

Dr. Strangelove or: How I Learned to Stop Worrying and Love the Bomb is a 1964 dark comedy that satirizes the fears of a nuclear conflict between the USSR (then still in existence) and the U.S. The idea of the nuclear deterrent and Mutually Assured Destruction (MAD) plays out as a deranged Air Force general attacks the Soviets without authorization from Congress and triggers their Doomsday Machine, which is an automatic nuclear retaliatory strike response mechanism that cannot be stopped by a human.

I saw the film about 40 years after it was made. With the perspective of a person who had lived behind the Iron Curtain during much of the Cold War, the film struck me as brilliant.

Today’s Doomsday Machines are governmental budgets that show alarmingly large deficits and over-leveraged government debt burdens that in many cases cannot be repaid. Many governments are marching towards ensured defaults as their spending cannot be supported by tax revenues and constant debt issuance. Greece already defaulted in 2012 but its high debt burden and straightjacket bailout conditions are leading to another crisis spearheaded by its new Syriza government.

Markets Decline over Renewed Grexit Fears

A major reason why we had such a downdraft in the equity markets last Friday was the resurrection of the Grexit scenario, given that Athens is running out of cash. The Grexit probability appeared to be increasing notably all week if one were to look at how the Greek government bond market has been acting.

On Friday the 10-year Greek government bond yield closed at 12.90% after rising all week and touching 13.13% intraday (see chart below). The real Greek drama was in the 2-year notes, which closed the week at 26.4%, rising over 28% intraday. Now that’s what I call a yield curve inversion, where 2-year note yields are precisely double the 10-year benchmark rate!

Greek Bond Yields Chart

Source: TradingEconomics.com

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

A massive yield curve inversion indicates a bond market in severe distress. Based on the way the market acted before the last Greek default a mere three years ago, this type of bond market action suggests another default. The 10-year benchmark yield fell as low as 5.59% in September 2014 when it began rising as Syriza began to lead in the polls. The Greek government bond market has been an accurate predictor of the recklessness of Syriza as it has continued to sell off, sending yields surging after it formed a government in late January of this year.

Will Greece have another default?

Clairvoyance does not exist although I clearly remember a conversation with one of the would-be proprietors of a taverna in Athens famous for its late night singing and dancing. I had recently seen “My Big Fat Greek Wedding” and I couldn’t help but notice the similarities to the film of what a real Greek taverna proprietor looks and acts like.

“There is too much deBt here,” (the man insisted on pronouncing the silent “b” in debt). Later on I would find out that the pronunciation of the silent “B” was a commonality of the Greek accent; he also pronounced the “B” in lamB and bomB.  “ΠΑΣΟΚ would just borrow and borrow. Then they take the money and spend it and they start all over again. This is going to end badly.” ΠΑΣΟΚ was the Panhellenic Socialist Movement that had formed many governments in the 1980s and 1990s and was in power in the run up to the default in 2012. The man hoped that New Democracy could fix the situation; but as it turned out, the “deBts” were too large to avoid a default.

Greek Statues ImageToday we are looking at a situation again where the 10-year Greek government bond is in the mid-teens in yield, while 2-year notes are double that yield. In this tense situation none other than Vladimir Putin has entered the arena with a possible last minute gas deal with Greece, offering to pay five billion euros in advance transit taxes for gas that would transit the Hellenic Republic after 2019. The Chinese are also rumored to lease a port as their gateway to the EU markets, which could bring even more money. If those deals are signed next week the Greek bond markets would probably calm down, but without any reforms this would revert to the old ΠΑΣΟΚ strategy of borrowing from the future to spend today that the real-life reincarnation of Mr. Gus Portokalos was so clairvoyantly alarmed about a decade ago.

A fresh Greek default is a big negative for the euro, which had managed to find support around $1.05 on the EURUSD cross rate. The euro is tradable with the Currencyshares Euro Trust (FXE) as well as with several leveraged and inverse-leveraged ETFs from ProShares. On the contrary, a last minute Putin intervention to save Greece would be a short-term positive for Greek equity and bond markets, as well as the euro itself, but possibly long-term negative.  Greek equities can be traded with the Global X FTSE 20 Greek ETF (GREK) while the penny-stock National Bank of Greece (NBG) has a NYSE-listed ADR.

A Putin deal is a possible long-term negative as it opens the door for Greece leaving the euro and the EU and joining the Eurasian Economic Union, the Russian response to the EU and the numerous attempts to snatch former Soviet states away from its centuries-long sphere of influence. It may sound outlandish right now, but the Russians know all too well the validity of the old Roman maxim, “divide and conquer;” and Greece leaving the EU could work out perfectly for their long-term strategy.

From 8 Basis Points to Zero?

In this polarized Grexit environment, German government bonds – or “bunds” as they are known in the bond trading world – hit an all-time low of eight basis points last Friday (see chart below). Japanese Government Bonds, or JGBs, were the marvel of the debt market for a decade with their persistently low yields. JGBs hit an all-time low of 20 basis points last January and at present are trading at a lofty 31 basis points. But the bunds seem to indicate that the deflation outlook in Europe  may be worse than Japan.

German Bond Yields Chart

Source: TradingEconomics.com

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

I know something is wrong when 10-year nominal bond yields start approaching zero. The U.S. TIPs market did that a couple of years ago as investors were forecasting rising inflation. (Future inflation would get indexed in TIPs prices, which later on would pay for the then-present negative yields). The expected inflation did not materialize, so U.S. TIPs prices backed away from negative territory.

The 10-year bunds are not inflation-protected, though; they are nominal in nature. The 10-year bonds in Switzerland have spent the bulk of 2015 in negative territory – yielding -0.15% at last count – pushed there by the accelerating decline in the euro and the resulting accelerating flight of capital into Switzerland that forced the Swiss to remove the 1.20 EURCHF floor in January.

The irony here is that Germany does not need the ECB’s QE. Greece needs it the most but is excluded from the operation as its junk-rated government bonds are not eligible collateral. The unprecedented speed of the euro decline as well as the sharp fall in German interest rates have caused a parabolic rise in the DAX benchmark stock index.Since the index hit bottom on October 15  it has risen a cool 4000 points in 6 months to 12390.75, notwithstanding last week’s sell-off, due mostly to Grexit fears.

German DAX Composite Chart

Source: TradingEconomics.com

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

I think the DAX and global markets can sell off some more if there is a Grexit. The euro was never designed with a mechanism for divorce. Such an action would set a bad precedent. Grexit aversion sets up the DAX for a continued parabolic rise, as last week’s sell-off would create the necessary buying opportunity for investors that see stocks as the only alternative to the 8-basis-point bund.

Consequently, U.S.-based investors can consider currency-hedged ETFs like DXGE and HEWG due to the present soft-currency status of the euro.

Growth Mail:

Never Underestimate the American Consumer

by Gary Alexander

“All production is for the purpose of ultimately satisfying a consumer.”

– John Maynard Keynes, in “The General Theory of Employment, Interest and Money (1935). 

John Maynard Keynes died on today’s date, April 21, 1946, at age 62, so he missed out on the golden age of American consumerism; but the last 70 years have shown us that we should never bet against the U.S. consumer, or the companies that best exemplify Keynes’ maxim of “ultimately satisfying a consumer.”

Retail sales declined three months in a row – coinciding with the winter months, December, January, and February.  Last week, we learned that March was the best month of the last year in terms of month-over-month gains.  The headlines weren’t so rosy, since March missed the economists’ consensus prediction of +1.1%. Still, as this chart shows, the March increase was considerably larger than the previous 11 months.

United States Retail Sales Chart

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

These numbers may look small, but these are month-over-month (not annualized) changes, so retail sales were up an aggregate 1.65% in the last year, if you incorporate all of these 12 month-over-month changes.

Six Reasons Not to Worry about Slow Retail Sales

For years, Louis Navellier has said that we shouldn’t underestimate the American consumer.  Here are a few additional reasons why we shouldn’t over-estimate the recent slowdown in monthly retail sales.

#1: “Retail sales” include gasoline station sales.  Gasoline sales are down 10% from a year ago.  I had to chuckle when I read the Wall Street Journal’s review of the latest (March) figures, when they said that “weak sales at gas stations continued to hold back overall growth.”   That’s due to much lower gas prices! 

#2: Slow growth in a deflationary environment is bullish.  Retail sales are not adjusted for inflation. When prices are flat, a 2% rise in retail sales is a “real” 2%.  In a more normal inflationary environment, with consumer prices rising at 4% a year, a 5% nominal gain in retail sales is less than a 2% “real” gain.

#3: Income is up, but more is going to savings. According to Deutsche Bank Securities, annual growth in average hourly earnings has averaged 2% since 2010, improving in the last year.  Aggregate payroll outlays are up 4.9% over the past year, according to Bureau of Labor Statistics data.  At the same time, the personal savings rate climbed up to 5.8% in February, the highest level since the end of 2012.

#4: Higher savings rates create a “coiled springof demand.  Americans cut their credit card balances in February by the most in nearly four years, according to the Federal Reserve. Guy Berger, an economist at RBS Securities said that “consumer spending is starting to look more and more like a coiled spring.”

#5: Winter and work stoppages created a “hibernation” effect.  Another especially brutal winter in the east and south turned malls into ghost towns and caused many consumers to hibernate over the winter.  In addition, a work stoppage at West Coast ports caused merchandise to collect dust (or rust) on the docks.

#6: The “wealth effect” is more powerful than savings or income.  Household wealth has increased by 42.3% in the last five years, due mostly to a recovery in real estate and the stock market, in addition to an increase in traditional cash savings.  The wealth effect encourages families to buy more “big ticket” items.

 Household Net Worth: Up Nearly
   $25 Trillion in Five Years  
  *In billions of US$; Source: Federal Reserve  
    & CNBC
  End of Year     Net Wealth*  
2009 58,251
2010 62,448
2011 63,668
2012 69,509
2013 78,844
2014 82,912

 

Net Household Wealth subtracts liabilities from assets.  Deutsche Bank analysts Peter Hooper, Matthew Luzzetti, and Torsten Slok calculate that U.S. households’ net worth is now almost 6.5 times consumers’ disposable personal income, the highest ratio since before the 2007-09 crash in housing prices and stocks.

By getting their personal balance sheets in order, the consumers’ financial obligations (including debt service, rent, and auto leases) are near their lowest levels (as a percent of disposable income) since 1981.

Consumers are More Confident – Even Though Investors Aren’t

In March, consumer confidence rose to its second-highest level since August, 2007, right before a major stock market peak prior to the financial crisis of 2008.  In February, the Conference Board’s index of sentiment climbed to 101.3 from 98.8.  The median forecast in a Bloomberg News survey of economists called for a decline to 96.4, so it turns out economists were more pessimistic than consumers.

Last Friday, the University of Michigan’s consumer sentiment index rose to 95.9 in April, up from 93 in March – above the economists’ consensus estimate of 95.5 and the second highest reading in eight years!

New Cars ImageHere is another interesting number to consider. The weekly Bloomberg Consumer Comfort Index is now at its highest since before the 2008-09 recession. The index climbed to 47.9 in the period ended April 5, 2015, reaching its highest level since May of 2007.  Gary Langer, whose Langer Research Associates produces the data for Bloomberg, said, “strong car sales, rising mortgage applications, gains in new- and existing-home sales and a 5-month high in manufacturing” led to the surprise reading in the latest report.

The following chart (which I saw on CNBC last Wednesday, as well as on Carpe Diem) illustrates one impact of the Wealth Effect.  It costs a lot more to eat out than to buy food in a grocery store and prepare meals at home.  The extra expense pays for a pleasant environment, good company, a wide array of choices, and no dishes to wash!  Here’s the dramatic convergence of eating out vs. eating in since 1992:

United States Retail Sales: Grocery Stores vs. Restaurants and Bars Chart

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

In times of true Depression, like the 1930s, you would find more people pinching pennies by eating at home, on thin gruel at that. But the “Great Recession” of 2008 caused only a slight dip in the blue and red lines above.  Then, most Americans went right back to their bars, fast-food joints, and fine restaurants.  (Note the blip in the blue line in late 1999 – it was likely due to stockpiling food before the Y2K crisis.)

This trend is bound to continue, since the Millennials (born 1981 to 1997) have now outnumbered living Baby Boomers (born 1946-64) in size – 75.3 million of them.  Many of the older Millennials (born 1981-89, now ages 26-34) are late to form families but have already formed the habit of eating out or ordering takeout, so the red line should surpass (and then continue to outpace) the blue line from here on.

One more number to set in juxtaposition to consumer confidence is the lack of confidence by investors. The long-term bullish sentiment average in the weekly survey of members of the American Association of Individual Investors (AAII) is 38.7%.  The percentage of bulls now stands at barely 32% in the latest AAII weekly survey – that’s the sixth straight week below the long-term average of 38.7% bullish.

American Association of Individual Investors Sentiment Chart

Source: Bespoke Investment Group

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

Despite a record high in the small-stock Russell 2000 index last week and near-record highs in most of the major market indexes, less than one-third of investors consider themselves bulls on the stock market.

A Century of Trouble …. And a 32,555% Rise in the Dow

“The challenge of the retail business is the human condition.” – Howard Schultz

You’d have had to be a fool to put money into stocks a century ago.  In April 1915, World War I was still in its first year with long sieges between armies in foxholes.  The Second Battle of Ypres began on April 22, 1915, with over 100,000 casualties in 33 days.  The stock markets of Europe had been closed for nine months at the time.  The New York Stock Exchange was completely closed for over four months, then it allowed only limited bond and stock trading under price restrictions for another four months. Full trading resumed on the New York Stock Exchange on April 1, 1915, after eight months of full or partial closure.

Sheet Music ImageMeanwhile, on this date in 1915, the Lusitania was resting in port in New York City, preparing for its return to Britain.  This was just three years after the sinking of the Titanic.  Ship owners were warned that German U-boats were threatening Atlantic traffic, but the Lusitania sailed on May 1.  A young American songwriter, Jerome Kern, 30, fresh from his first hit in 1914 (“They Didn’t Believe Me”) got involved in a late night poker game April 30 and overslept, missing the boat.  That’s good luck, since his companions were lost at sea when the Lusitania was torpedoed off the coast of Ireland May 7 with a loss of 1198 lives.  We wouldn’t have the 1927 musical “Showboat” or Kern’s later classics like “All the Things You Are,” “Pick Yourself Up,” “Smoke Gets in Your Eyes,” and “The Song is You” if Kern had skipped that poker game.  (See the new book by Erik Larson, “Dead Wake,” for details on the final sailing of the Lusitania.)

If your ancestors dared to invest in stocks in early 1915 and held on for the next 50 years, they gained over 1,500%, not counting dividends or inflation. If their heirs held on for another 50 years, the Dow rose 326-fold in the 100 years since the start of 1915.  That’s an average of 6% a year and a total of 32,555%.

  Source: Stock Trader’s Almanac
  Year     Dow Jones Industrials on January 1  
1915 54.58 Gains
1940 150.24 +175% in 25 years
1965 874.13 +1,502% in 50 years
1990 2753.20 +4,944% in 75 years
2015 17823.07 +32,555% in 100 years

 

The Dow gained 175% in the troubled quarter-century from the dawn of World War I to the start of World War II – even accounting for the 1929 crash and the resulting 89% decline in the Dow index.

The Dow gained 482% from 1940 to 1965, mostly due to the ebullience of the American consumer after World War II.  Then, the Dow managed to gain 215% in the final 25 years of the Cold War, 1965-90.

Since 1990, we’ve had two Gulf Wars and 9/11, but the scale of war is much smaller in terms of death rates and percent of GDP lost to war.  That’s one reason for a 547% gain in the Dow in the last 25 years.

In the next 25 years, we’re liable to see similar challenges, but they won’t be anything like what America faced in 1915, 1940, or 1965.  The world really is getting better, and safer. And that’s bullish for stocks.

Stat of the Week:

Retail Sales Finally Rise in March

by Louis Navellier

Retail Sales ImageOn Tuesday, the Commerce Department announced that retail sales rose 0.9% in March, the first gain after three straight monthly declines and the strongest retail sales in a year.  Economists were actually expecting a 1.1% rise in March retail sales due to an early Easter and strong vehicle sales.  Among the details, the Commerce Department reported that vehicle sales rose a strong 2.7% in March, which was the best monthly gain in the past year.  Excluding vehicle sales, retail sales rose 0.4% in March, which was below economists’ expectations of a 0.7% rise.  Despite the fact that economists were more optimistic than the actual retail sales results, the dramatic improvement in March retail sales was clearly welcome.

The Labor Department reported on Tuesday that the Producer Price Index (PPI) rose 0.2% in March after four straight monthly declines.  Excluding food and energy, the core PPI also rose 0.2% in March.  In the past 12 months, the PPI has declined 0.8%, the largest annual decline since services were added.  The core PPI, excluding food and energy, is up 0.8% in the past 12 months due largely to higher service costs.

On Friday, the Labor Department announced that the Consumer Price Index (CPI) rose 0.2% in March. Energy prices rose 1.1%, the biggest monthly gain in the past year. In contrast, food costs declined 0.2%.  Excluding food and energy, the core CPI also rose 0.2% in March, due largely to higher housing and used car prices.  In the past 12 months, the CPI has fallen 0.1%, while the core CPI has risen 1.8%.  Overall, the CPI in March rose less than the 0.3% that economists anticipated, so inflation remains relatively tame.

The Fed has repeatedly said that deflation is temporary. They may be right.  Nonetheless, since the Fed’s favorite inflation indicator, namely the personal consumption expenditures (PCE) price index, rose only 0.3% in the past 12 months, the Fed is under no immediate pressure to raise key interest rates.

On Wednesday, the Fed announced that U.S. industrial production declined 0.6% in March, a bit worse than economists’ consensus estimate of a 0.5% decline.  For the first quarter, industrial production declined 1%, the first quarterly decline since the second quarter of 2009.  Economists are blaming cold weather, a strong U.S. dollar, and the labor strikes at West Coast ports for the slowdown in industrial production.  Mining output, which includes crude oil production, declined for the third straight month.

Layoffs in the energy sector are starting to show up, since the Labor Department announced on Thursday that weekly unemployment claims rose to 294,000, the highest level in six weeks.  Although weekly unemployment claims can be volatile, the latest rise may very well be energy related, since Schlumberger announced 11,000 layoffs on Thursday, which represents 15% of its overall workforce.  In the fourth quarter, Schlumberger reported 9,000 layoffs.

Some Good News (At Last) from Europe

The good news in the euro-zone is that the weak euro is now helping to boost exports.  On Wednesday, Eurostat announced that its trade surplus rose by 20.3 billion euros in February, up from 14.4 billion in January.  Euro-zone exports rose by 4% in February, while imports were essentially unchanged.  As long as the ECB continues with quantitative easing and negative interest rates, the euro is expected to remain weak and help to boost exports.  On Friday, Eurostat announced that consumer prices declined 0.1% in March, which was the fourth straight monthly decline, so deflation persists in the euro-zone.

Shipping Containers on Dock ImageThe Chinese yuan is now a relatively stable currency and is no longer being cited as a potential currency manipulator, like the euro-zone and Japan; but on Wednesday, Sheng Laiyun, a spokesman for China’s National Bureau of Statistics, said, “There is downward pressure on exports.”  China’s exports declined 15% in March compared with a year ago, so there is mounting concern that China is less competitive in the world due to rising labor costs and a stronger currency.  I should also add that during the same period, China’s imports declined by 12.7%.  Despite March’s lower exports and imports, the National Bureau of Statistics announced on Wednesday that China’s GDP grew at a 7% annual pace in the first quarter, down from a 7.3% annual pace in the fourth quarter.  This is China’s slowest GDP growth in six years and was apparently impacted by a slumping property market, industrial overcapacity, and slowing exports.

Finally, I should add that on Tuesday, the IMF cut its 2015 GDP forecast for the U.S. by 0.5% to 3.1%.  The IMF is more optimistic than most private economists, who are expecting only 2% U.S. GDP growth for 2015.  Due to last week’s disappointing economic reports, like falling industrial production, the U.S. dollar finished down 2.1% relative to the euro last week.  I still anticipate no key interest rate increases in 2015, after multiple Fed officials admitted that the most recent economic data has been disappointing.

P.S: I will be speaking at the Boston Marriott Newton in Newton, Massachusetts tonight, Tuesday, April 21st and then at the Hanover Marriott in Whippany, New Jersey on Wednesday, April 22nd.  I will review where investors can achieve the highest yields in both bonds and stocks, as well as my current market outlook and favorite stock picks, along with an extensive question and answer session.  These seminars start at 7 PM and you may attend at no cost, but please call 800-454-1395 to register.


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.

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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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