The Market Closes July

The Market Closes July on a Positive Note; What’s Next?

by Louis Navellier

August 4, 2015

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

Chinese City in WaterBoth the Dow Jones Industrials and the S&P 500 were positive last week and for the full month of July, but both indexes retested their 200-day moving averages last week. To me, this signifies that the overall stock market is trying to find firmer footing.  In China, the Shanghai Composite Index consolidated 11% early last week and also retested its recent lows – down 29% since June 12.  The other big story last week was that a persistently strong U.S. dollar continued to crush many commodity and multinational stocks.  As a result, the “seismic shift” into domestic stocks which I’ve been talking about remains alive and well.

Many stocks continue to get hit with profit taking in the wake of their earnings announcements, but then many of them suddenly “right themselves” in subsequent days.  This is naturally frustrating for many investors, but that’s the way High Frequency Trading (HFT) systems work! What goes down one day is frequently up the next day.  For some of these stocks, I try to sell them into strength when they rebound.

Last Wednesday, the Federal Open Market Committee (FOMC) met and announced no change in their interest rate policy for now.  The Fed has constantly said that they are “data-dependent,” so how will they react to a second-quarter GDP growth rate of just 2.3% (1.45% growth in the first half), or the downward revisions to previous quarters? I still contend that disappointing economic statistics create the likelihood of a single (“one and done”) rate increase in December (not September), and no further raises in 2016.

In This Issue

In Income Mail this week, Ivan Martchev takes a fresh look at the Russian ruble crisis and India, a more hopeful “BRICS” nation. In Growth Mail, Gary Alexander will examine the eerie quiet in the market averages recently, and whether a new market “hurricane” may be brewing. I’ll return with an overview of the generally disappointing statistics which could convince the Fed to delay any rate increase for now.

Income Mail:
More Trouble with the Ruble
by Ivan Martchev
India and the Disintegrating BRICS

Growth Mail:
Does This Eerie Calm Portend another Market Hurricane?
by Gary Alexander
The Last Two Flat Years (1994 and 2011) and What Happened Next
Welcome to Wall Street’s Hurricane Season
This Day, Week, and Month in Market History

Stat of the Week:
Second Quarter GDP Rises 2.3%
by Louis Navellier
What will the “Data Dependent” Fed Do with all This New Data?

Income Mail:

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

More Trouble with the Ruble

by Ivan Martchev

As the price of oil and hard commodities have come under pressure in large part due to the overleveraged unraveling in the Chinese economy, it is no wonder that the Russian ruble (or “рубль” as the Russians call it) is also under pressure. Russia is the major global economy that is most leveraged to the prices of oil and natural resources, and before this bear market in oil started the Russian federal budget was calculated to be funded to the tune of 54% from oil revenues. Those oil revenues are not coming.

United States Dollar Russian Ruble - Weekly OHLC Chart

Source: Barchart.com

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

The USDRUB cross rate (black line) at last count is trading at 61.20. If you flip the ruble into U.S. cents per local currency you will see that it has gone from 3.7 cents in 2011 to 1.3 cents per ruble in December 2014.

The bigger trouble is that this currency decline is not limited to only the ruble. The Brazilian Real (green line) has also been cut in half since 2011 but more gradually than the ruble. Brazil has somewhat more balanced exports between hard and soft commodities and has experienced more gradual deterioration of its export revenues. Still, wherever you can find a commodity currency you see the same weakening trend – including the South African Rand, Indonesian Rupiah, Australian dollar, and Canadian dollar.

Since it is entirely possible to see the Chinese economy enter a bad recession or a real depression – given the parabolic rise in financial leverage to the tune of 400% of GDP used there since 2007 and the recent crash in the real estate and stock markets – it means this rout in natural resources is not over. That means more downside for commodity currencies and more upside for the dollar as a safe haven currency.

It should not be forgotten that many emerging markets have gone on a dollar borrowing binge since 2008, assuming that the greenback bear market would last for a long time. As recently reported by Bloomberg in an April 12, 2015 article entitled “The $9Trillion Short That May Send the Dollar Even Higher”, data from the Bank of International Settlements shows that dollar borrowings by sovereign and international corporate entities have increased from $6 trillion in 2008 to $9 trillion at last count. This in effect constitutes a massive synthetic short position against the dollar that will have to be covered just as it has begun to rally. This threatens to push the dollar much higher than it would otherwise go if there were no such massive dollar borrowings.

(When a sovereign entity borrows dollars, it sells them in the currency market for its own currency in order to spend or invest them. When those borrowings have to be repaid with interest, that entity has to buy the dollars it sold, hence the covering of a massive synthetic short position against the U.S. dollar.)

Russia is in a league of its own as it does not have that much external debts as it has been a policy of the Russian government to pay those down to low levels. But most commodity producing countries are not that way. They borrowed heavily on the idea that the commodity super-cycle would last much longer and they refuse to believe that it has now ended.

Crude Oil WTI - Monthly Nearest OHLC Chart

Source: Barchart.com

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

Still, the Russian situation is somewhat more complicated as it is in the middle of a geopolitical mess that is difficult to resolve by political means, so commodity price weakness is compounded by economic sanctions. Despite being the cheapest market globally, the stock market may have more downside. The bearish outlook for commodities and oil and the geopolitical mess make the Russian market a classic value trap.

Tell me where the oil rout may stop and I will tell you if there is more downside to the Russian ruble and Russia’s stock market. If indeed oil is headed under $20/bbl. in due course as the Chinese situation unravels, the ruble may break 100 on the USDRUB cross rate. The Russian dollar-denominated RTS index is at 858 at the close last week. I think it is entirely possible that it ends up in the 400-500 range.

Russian RTS Index - Monthly OHLC Chart

Source: Barchart.com

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

The depressed nature of the Russian market can be illustrated well with Russian energy conglomerate Gazprom (OGZPY), which at last count was worth only $52 billion in the stock market. Gazprom shares trade at 0.17 times book value – that’s 17 cents on the dollar! – and 0.3 times sales. Gazprom has the largest amount of hydrocarbon reserves of any publicly-traded energy company on the planet. Yet, those hundreds of billions of dollars in hydrocarbon reserves are worth little in the stock market at the present time, as investors have assumed that Mr. Putin is building a new Iron Curtain. I do not share this fear of a new Iron Curtain, but suffice it to say that with the trajectory of commodity prices as well the standstill on the geopolitical front, the outlook for Russian equities is poor for the intermediate term. (Ivan Martchev does not currently hold a position in Gazprom, Navellier & Associates does currently hold a position in Gazprom for some of its clients.)

Daily Russian Bear Shares Chart

Source: Stockcharts.com

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

Despite that poor outlook, one should not forget that stock markets tend to zig and zag and even in big declines there are big bear market rallies. The worst decision an investor can make is to buy-and-hold a leveraged bearish ETF on Russian equities like the Direxion Daily Russia Bear 3x Shares (RUSS). When the Market Vectors Russia ETF(RSX) retests the 12 level (from December 2014) and the Russian RTS Index does the same, RUSS will not be able get to its December 2014 high (reverse-split) at $258. The reverse daily compounding of leveraged 3x ETFs that are based on volatile assets like Russian equities may indicate that both bullish and bearish ETFs will decline over time! (Ivan Martchev does not currently hold positions in RSX or RUSS, Navellier & Associates does not currently hold positions in RSX or RUSS in client portfolios.)

India and the Disintegrating BRICS

TajMahal ImageSince Goldman Sachs coined the term BRIC (Brazil, Russia, India, and China), they have opted to add an “S” for South Africa. The problem with the BRICS at the moment is that China is so big that it literally drags the rest of the emerging markets with it wherever it is going, which is not a good place at the moment. The only BRIC that stands a good chance of not being dragged along with China’s deteriorating economy is India. This is because all of the others – Brazil, Russia, and South Africa – are leveraged to natural resources. With the commodity super-cycle now over, these three have seen their currencies get cut in half against the dollar and are experiencing a deteriorating balance of payments.

In a strange way, the end of the commodity super-cycle is actually a big positive for India.  It leads to a falling inflation rate, falling interest rates, and a monetary boost to the economy right at the time when the Modi government has embarked on a big reform agenda. The Indian stock market is doing well while the rest of the BRICS market have serious issues. 

The Indian market is massively outperforming the MSCI Emerging Markets Index, the benchmark for emerging markets, as most of the other countries included in the index are either leveraged to trade with China or to the dead commodity super-cycle, which has ended in part due to the situation in China.

iShares India Nifty 50 Index Fund Chart

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

This massive outperformance can be seen in the relative chart of a large cap India ETF like iShares S&P India Nifty 50 Index Fund (INDY) vs. MSCI EM Index ETF (EEM). The way the situation in China is progressing, I think this massive outperformance will continue. (Ivan Martchev does not currently hold a position in INDY or EEM, Navellier & Associates does currently hold a position in EEM for some of its clients.)

The Chinese situation may take years to work itself out, while India has no such issue with the usage of massive amounts of financial leverage in order to grow at any costs by building empty cities and highways in the middle of nowhere. On the contrary, India is in bad need of more highways.

It used to be pointed out as a negative that India had a more closed domestically-oriented economy and now it has turned out to be a blessing. That said, not all is coming up roses in the Indian markets, but perhaps there is an opportunity in the divergence.

Standard and Poor's India Nifty 50 Index Shares - Weekly OHLC Chart

Source: Barchart.com

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

While the large-cap Sensex index made all-time highs in 2015 and the USD-denominated INDY ETF matched its all-time high, the Indian small cap sector is far away from such appreciation. Indian small caps were decimated, declining from 95 to 22 on the Market Vectors India Small Cap ETF (SCIF). (Ivan Martchev does not currently hold a position in SCIF, Navellier & Associates does not currently hold a position in SCIF in client portfolios.)

SCIF has doubled off the bottom but it needs to double again if it will match what Indian large caps are doing. I think that may happen in due course as the Modi government executes its reform agenda as emerging market investors realize that India is the only relative value remaining in the old BRIC(S) quintet at the moment due to the coming unravelling of China’s over-leveraged financial system.

Growth Mail:

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

Does This Eerie Calm Portend another Market Hurricane?

by Gary Alexander

“While the Dow has averaged a gain of 0.93% in August over the last 100 years, the index has performed poorly in August over the last 50 and 20 years…. Over the last 20 years, August has actually been the worst month of the year.”

– Bespoke Investment Group, July 31, 2015, “August Seasonality.”

The S&P 500 has been trading in a very narrow range over the last six months – from a low of 2040 to a high of 2130.82.  At no point during the first seven months of this year did the S&P 500 close up or down more than 3.5% from its 2014 closing figure of 2058.9. Through July 31, the S&P 500 is up 2.18% year-to-date, but the Dow Jones index is down 0.75%.  Bespoke has called 2015 “The Year of the Sloth.”

According to Bespoke Investment Group, in their July 31 Bespoke Report, “the S&P 500 has been stuck in what seems like a marathon game of Chutes and Ladders.  Every time the market is on the verge of winning the game (breaking out), it inevitably hits a chute, like it did last week. Then, whenever it looks like we are going to get back to start, stocks hit a ladder and climb higher, like they did this week.”

Later in that report, Bespoke observed: “Toward the end of last week, the S&P 500 dropped below its 50-day moving average in what was the 29th cross of the year. This week, the S&P 500 climbed back above the 50-DMA for its 30th cross of the year.  As things now stand, we are now just two crosses from the all-time record for a given year and there are still five months left of trading.”  For the record, the highest number of 50-DMA crossings was set in 1993, at 32.  The second most crossings (31) took place in 1933.

Meanwhile, the Dow Jones Industrial Average has risen and fallen over and under its annual breakeven point (17,823) 21 times so far this year. The previous record was 20 times, which occurred twice before, in 1934 and 1994. What happened next? The Dow was up 38.5% in 1935 and up 34.1% in 1995.  Can that happen again?  Let’s look at the most recent “flat” years (1994 and 2011) and see what happened next.

The Last Two Flat Years (1994 and 2011) and What Happened Next

The last two “flat” years (under 2% change either way) were 1994 and 2011.  In the first case, the S&P declined 1.5% in 1994, followed by a 34.1% gain in 1995.  What happened in 1994? Last week, I covered 1994 from the political angle – examining the effects of President Clinton’s first forays into top-down micro-managing of the economy. But also in 1994, the Greenspan-led Fed began raising interest rates in February, starting with baby steps, then giant steps, for a total of six rate increases within one year.  The market declined modestly on that news, but 1994 was followed by a huge five-year surge, 1994 to 1999.

In 2011, the near-impossible happened.  The S&P 500 was almost perfectly flat, beginning the year at 1257.64 and then “falling” 0.003% to 1257.60 at year’s end.  However, that apparently placid sea was disrupted by a market hurricane in early August.  Here is a table of the Dow Jones changes each day for the first two weeks of August.  At one point, the Dow gained or lost 420 or more points in 5 of 6 days.

 Source: Yahoo Finance. 
  Date in 2011     Closing Dow     Change  
Monday, August 1 12,132.49 -10.75
Tuesday, August 2 11,866.62 -265.87
Wednesday, August 3 11,896.44 +29.82
Thursday, August 4 11,383.68 -512.76
Friday, August 5 11,444.61 +60.93
Monday, August 8 10,809.85 -634.76
Tuesday, August 9 11,239.77 +429.92
 Wednesday, August 10  10,719.94 -519.83
Thursday, August 11 11,143.31 +423.37
Friday, August 12 11,269.02 +125.71

 

There was another 420-point drop on August 18 and many other turbulent aftershocks. The Dow fell 15.8% from July 21 to August 10. Using the broader S&P 500, the market fell 16.7% from July 22 to 1120 on August 10. While stocks were careening up and down – mostly down – gold spiked up from $1495 on July 5 to all-time high of $1895 per ounce just two months later, on September 5, 2011.

This series of catastrophic swings, up and down, had a political basis. While Congress was wrestling with an increase in the U.S. debt ceiling, Standard & Poor’s downgraded the U.S. credit rating to AA+ (from AAA) on Friday, August 5, resulting in the following Monday’s 635-point drop.  Investors were terrified.

Since then, the S&P 500 has had three great years: +13.4% in 2012, +29.6% in 2013, and +11.4% in 2014.  The index is up about 90% from its August 2011 lows. More importantly, there has not been a single 10% or greater correction in the S&P 500 since that fateful 16.7% drop during the market hurricane of 2011.

The calming of political waters had a great deal to do with the market’s recovery since 2011. In the following year and a half, there were a few more pro-forma showdowns about debt ceilings and budget sequestrations, but since the start of 2013, when the “fiscal cliff” was averted at the last minute, our government’s machinations have taken a back seat to overseas concerns – Greece, Ukraine, Iran, ISIS, China.  We haven’t seen many major domestic or governmental crises over the last two or more years.

Welcome to Wall Street’s Hurricane Season

Palm Trees in Hurricane ImageHistorically, August, September, and October mark the peak of the Atlantic hurricane season and they also represent some of the scariest months in stock market history. However, most years don’t bring major killer hurricanes, and most autumns don’t deliver market crashes.  Since the last major hurricane season (2005), which had four Category 5 hurricanes (Emily, Katrina, Rita, and Wilma), we have gone nearly a decade without a Category 3 (or higher) hurricane making landfall in the U.S.  The last Category 3 or higher hurricane to make landfall in the U.S. was Wilma on October 24, 2005. Likewise, we haven’t seen a major market decline in four years. Those who fear market hurricanes have missed out on major gains.

Instead of fearing the past, let’s look at today’s fundamentals, focusing on earnings and sentiment.

With nearly half of the S&P 500 companies reporting second-quarter results, 74% have exceeded industry analysts’ earnings estimates by an average of 6.3%, averaging year-over-year earnings growth of 9.1%, according to Ed Yardeni’s Morning Briefing on July 30.  Revenues aren’t so rosy, coming in at just 0.3% above a year ago. Excluding energy companies, however, revenue growth improves to +1.2% and earnings growth improves to +11.6%.  This underlines the need to be selective among sector choices.

Oil Pipe Lines ImageThe strong dollar and lower oil prices are clearly impacting energy company profits and hurting many multinational U.S.-based companies.  Last week, economist Ed Yardeni wrote (in “Room to Grow?” on Wednesday, July 29), that “there is a strong negative correlation between the trade-weighted dollar and revenues.” As a result, he says, “the recent renewed rebound in the dollar and the resumption of weaker oil prices seem to be depressing analysts’ outlook for S&P 500 revenues.”  This is why Louis Navellier has been talking about stock selectivity and the “seismic shift” in market leadership since last February.

Turning to sentiment, investors have been predominantly neutral for several weeks.  That changed last week.  In a July 30 posting (“Investor Sentiment Craters”), Bespoke said that the latest poll of American Association of Individual Investors (AAII), published July 29, showed neutral sentiment dropping below 40% (to 38.2%) for the first time since April after a record 16 straight weeks of over 40% – a large crowd sitting on the fence.

The latest AAII poll also showed a large drop in bullish sentiment. According to Bespoke:

“After climbing up to 32.5% last week, bullish sentiment dropped by over 11 percentage points to 21.1%. This represents the lowest level since early June and the 18th straight week that it has been below the average reading of 38.19% since 2009.  This week’s bearish sentiment was even larger, as pessimism spiked up to 40.7%. That’s the highest level in nearly two years (August, 2013).  As a result of this week’s moves, the spread between bullish and bearish sentiment now stands at -19.59 percentage points, which is the most negative spread since April 2013.”

These sentiment polls are usually very valuable as a contrarian indicator.  When the number of bears increases while the number of bulls shrinks, that is often a sign of an excellent buying opportunity.

This Day, Week, and Month in Market History

According to Bespoke Investment Group (“August Seasonality,” July 31, 2015), the Dow has averaged a gain of 0.93% in the month of August over the last 100 years, but the market fell in three of the last five Augusts – August of 2010, 2011, and 2013 – falling an average 4.4%. However, last August was up 3.8%.

According to the Investor’s Almanac, the best August in history was also the second best month of the 20th Century, August of 1932 (+34.8%).  The following August (1933) was up a handsome 12.8%.  In fact, the week ending August 6, 1932 was the best week in market history: The Dow gained 22.7%.  That was the week FDR’s blue NRA Eagle appeared, giving citizens hope for an end to the Great Depression.

In addition to 2011 (described in detail above), here are some other recent market scares in August:

August 1982 started out with eight straight down days, August 3-12. Fed Chairman Paul Volcker’s tight money policies threatened to bring on deflation in the midst of our worst postwar recession, with 11% unemployment, interest rates near 20%, and a GDP declining at a 1.8% rate.  But then, on August 13, the strongest bull market of our times began. For all of August 1982, the S&P ended up gaining 11.6%.

Kuwaiti Arabic Spire or Towers ImageOn Thursday, August 2, 1990, Saddam Hussein invaded Kuwait. The Dow fell 35 points that day, 55 points the next day, and 93 points on Monday, August 6.  In the first five trading days of August, the Dow lost 195 points (-6.7%).  Oil prices rose from $21 per barrel at the end of July to $28 on August 6.  Crude oil prices rose to a peak of $46 in mid-October, more than doubling in under three months. In all, the Dow declined 21.2% from July 17, 1990 (at 2999.75) to a low of 2365.10 on October 12, 1990.

On August 4, 1998, the Dow fell nearly 300 points, the first of several scary days in August. The cause was the Russian ruble crisis, and the unfolding drama of how that currency’s collapse impacted the hedge funds. In all, the Dow fell 1344 points (over 15%) in August 1998, the largest monthly point drop by then.

Stat of the Week:

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

2nd Quarter GDP Rises 2.3%

by Louis Navellier

On Thursday, the Commerce Department announced that its preliminary estimate for second-quarter GDP growth was a disappointing 2.3% annual rate, below economists’ consensus estimate of 2.5%.  Consumer spending grew at a 2.9% annual pace in the second quarter and accounted for the bulk of the GDP growth.

In addition, exports rose 5.3% in the second quarter, while imports only rose 3.5%, so this more positive trade balance also boosted GDP growth a bit. However, second-quarter exports were unusually high due to a catch-up spurt after the West Coast Port Strike in the first quarter, so these trade figures may be deceptive.

Inventories remain very tight and are not adding to GDP growth. This means third-quarter GDP growth could improve, since depleted inventories have to be built up.  Overall, the second-quarter GDP report was a bit disappointing, but it was promising to see the consumer driving overall economic growth again.

Army Tank ImageIn the same report, the Commerce Department also revised GDP growth for the first quarter to a 0.6% annual rise, versus a previously reported -0.2% annual decline.  If this was not confusing enough, the Commerce Department also revised GDP for previous quarters, from the third quarter of 2012 to the first quarter of 2014. They said that overall GDP during that period grew at only a 2% annual pace, down from a previously reported 2.3% annual pace.  These revisions were supposed to correct flaws in how military outlays and spending on consumer services such as health care are treated.  Furthermore, the new GDP criteria also incorporated changes in how certain taxes and social benefits are categorized.

This was just the first phase of GDP changes to come. Two more phases will follow next year, potentially leading to more significant revisions to U.S. GDP growth over the past few years.  Ironically, this means that just before the 2016 Presidential election, past GDP numbers will likely be changing significantly.

The Commerce Department also announced last week that durable goods orders rose 3.4% in June, due largely to a 66% rise in commercial aircraft orders.  Excluding transportation orders, overall durable goods still rose by a healthy 0.8% in June.  Also encouraging was the fact that orders for core capital goods, indicative of business spending, rose by 0.9% in June after declining in the previous two months.

Economists remain concerned that a strong U.S. dollar will continue to curtail exports and adversely impact durable goods orders, but June was definitely encouraging compared with previous months.

What will the “Data Dependent” Fed Do with all This New Data?

Despite disappointing GDP figures, Wall Street remains convinced that the Fed will raise key interest rates in September – which helped to further bolster the U.S. dollar this week.  On Wednesday, the Fed wrapped up its Federal Open Market Committee (FOMC) meeting and reiterated its statement that “it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2% objective over the medium term.”  Frankly, with a strong U.S. dollar crushing commodity prices and no inflation in sight, I still believe that if the Fed raises rates it will most likely be in December in a “one and done” manner.

Another reason that I remain convinced that the “data dependent” Fed will not raise key interest rates in September is that on Tuesday, the Conference Board announced that its consumer confidence index plunged to 90.9 in July, down from 99.8 in June.  This was a massive surprise, since economists were expecting the July consumer confidence index to slip only slightly to 99.1.  The Conference Board also pointed out that its present situation component, a measure of current conditions, slipped to 107.4 in July, down from 110.3 in June, while its future expectations component plunged to 79.9 in July, down from 92.8 in June.  The future expectations component is now at its lowest level in almost 18 months.

Eye Glass View ImageFinally, if you need any more indications that the Fed will not likely raise rates in September, the Labor Department dropped a “bomb” on Friday when it announced that its employment cost index only rose by 0.2% in the second quarter, well below a 0.7% rise in the first quarter and substantially below economists’ consensus second-quarter estimate of 0.6%.  This sudden deceleration in the employment cost index was the largest deceleration in approximately three decades and a sign that, despite increases in the minimum wage, higher wages are not being passed down to many workers.  Since the Fed’s latest (July 29) statement said that it did not want to raise key interest rates until there is “further improvement in the labor market,” Friday’s  ‘bomb’ may cause the Fed to postpone any rate increases.


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.

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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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