Under this Market

Rising Earnings and Stock Buy-backs Keep a Floor Under this Market

by Louis Navellier

July 31, 2018

BloodMoon.jpg

There are two theories about why the stock market finished the week in a poor mood last Friday. One theory is that an eerie full “blood moon” appeared, signaling that “the end of the world” is near. A more down-to-earth theory is that it was a Friday in the hot summer months, so traders wanted to clean out their inventories, leave early, and get an early start to the weekend. Obviously, I subscribe to the second theory.

So far, second-quarter earnings announcements are coming in much better than expected. With 53% of S&P 500 companies reporting results, 83% have delivered a positive earnings surprise and 77% a positive sales surprise. Earnings are 21.3% above last year’s level. Despite these blockbusters results, many leading growth stocks oscillated with the overall stock market last week. Last Tuesday, for instance, the Nasdaq Composite surged 0.86% in the morning and then pulled back 0.92%, closing down for the day.

Fortunately, this kind of reversal means nothing in the long run. Last Tuesday, our friends at Bespoke Investment Group looked at all such daily reversals – defined as a “gap up” of 50 or more basis points or a 1% or greater early rise, followed by a reversal to a decline by day’s end – in the Nasdaq since 1996 and found that the index was 1.55% higher a month later and a whopping 4.69% higher three months later. Those numbers are far above the market averages (1.05% and 3.25%, respectively) during those 22 years.

In other words, these “air pockets” are great buying opportunities. Since professional investors love to take vacations in August, more air pockets may be coming in the upcoming weeks. The bears continue to talk about “peak earnings momentum,” but third- and fourth-quarter S&P 500 earnings are forecasted to rise at a 22.4% and 18.7% annual pace, respectively; so if earnings are “slowing down,” it is like your car decelerating from 155 mph in the first quarter to 145 mph in the second quarter, reaccelerating to 150 mph in the third quarter and then “slowing” to135 mph in the fourth quarter. The bottom line is that we are still going very fast. I expect many short sellers to get buried in the wake of these rising earnings.

Price-to-earnings (P/E) ratios are being compressed since the S&P 500 has not risen anywhere near as fast as earnings. Furthermore, I expect another wave of corporate stock buy-backs as the second-quarter announcement season winds down, which is exactly why May was so strong for so many fundamentally superior growth stocks. So far, 2018 is on track to be the biggest year for corporate stock buy-backs, which reduces the number of outstanding shares and thereby boosts their underlying earnings per share.

In This Issue

Bryan Perry spotlights a pair of chinks in the market’s armor, but he thinks any summer swoon should be viewed as a new buying opportunity. Gary Alexander delivers the same message: Although August is the market’s worst historical month, it’s worth enduring since the fourth quarter is the strongest quarter of the year. Jason Bodner still favors Info-Tech after analyzing the data behind whether Friday’s selloff was the start of a real turn or just “fake news.” Then I’ll return with another look at trade war fears and the latest economic tea leaves, with a special focus on coastal real estate figures. (Ivan Martchev is off this week.)

Income Mail:
Two More Chinks in the Bull’s Armor
by Bryan Perry
Beware of Seasonal Market Volatility in August and September

Growth Mail:
Brace Yourself! The Market’s Worst Month (-1%) Starts Tomorrow
by Gary Alexander
GDP Up 4.1% with “Silver Linings” Attached

Sector Spotlight:
Is Friday’s Tech Reversal “Real” or “Fake News”?
by Jason Bodner
Despite Trade War Fears, Industrials Lead the Pack in July

A Look Ahead:
Trade War Fears with Europe Start to Fizzle
by Louis Navellier
GDP Growth is Fine but Coastal Real Estate is Suffering

Income Mail:

*All content of "Income Mail" represents the opinion of Bryan Perry*

Two More Chinks in the Bull’s Armor

by Bryan Perry

The past week started out with great fanfare and high expectations for a big week for stocks. After all, the cream of the crop of earnings was to be reported, European Union President Jean-Claude Junker was scheduled to visit the White House, the first read on second-quarter GDP was to be released, along with several juicy data points, including numbers on the housing market, inventories, and consumer sentiment.

The week was all teed up for record-breaking gains and, although it started out strong, with the S&P 500 trading to within 24 points (0.8%) of its all-time high of 2,872, the animal spirits fizzled out on the heels of some big earnings disappointments from the biggest integrated oil companies, a couple of FAANG companies, and various other Wall Street darlings that failed to exceed the ‘whisper’ numbers or couldn’t muster the kind of glowing upward sales and earnings guidance that investors had come to expect.

While second-quarter GDP came in at an impressive 4.1%, it was still light of the 4.3% (or higher) figure the market was looking for. Housing data continued to sorely disappoint with New Home Sales for June coming in at 631,000, well below the 670k consensus, and Existing Home Sales declining for a third straight month to an annual pace of 5.38 million. From my vantage point, the weaker housing data overrode the generally good news surrounding earnings and improved tariffs relations with the EU.

chart1.jpg

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

This week’s Pending Home Sales and Construction Spending data will shed more light on this all-important sector, which for the moment is a chink in the bull’s armor. But the summer months can spit out some squirrely data because it is also well documented that Americans are spending more on vacation travel this year than at any time in history. So, it stands to reason that there are just a lot of unengaged buyers and sellers in July and August, but the pace should pick back up before school starts in the fall.

A second chink in the bull’s armor was the widespread rash of selling in the Information Technology sector on Friday. What started out as a ho-hum day turned into a waterfall selloff from what I would call an illogical correlation. Just because a couple of social media stocks got trounced, that doesn’t mean that all of tech-land is suddenly sick. Conversely, Q2 results from the majority of global high-profile tech companies have been quite impressive and should continue so during the current quarter.

Product innovation, a strong global economy, and U.S. tax reform are stirring CIO investment in IT infrastructure. This has been a unique year for IT spending trends. Gartner Group predicts that global IT spending will reach $3.7 trillion by the end of the year – a staggering 6.2% increase from 2017, which is an unsustainable Compounded Annual Growth Rate (CAGR). Going forward, Gartner is forecasting something closer to a CAGR of 3% for the next five years, which is still a bullish investment proposition.

The optimistic outlook for IT spending got a big boost from tax reform. The corporate tax cut will have two effects, one short-term and one long-term. Companies will receive a windfall from the cut on existing investments that they can return to shareholders through increased dividends and buy-backs. But at the same time, companies face a lower tax burden for new investments, which encourages more capital spending that eventually translates into higher productivity and wage growth.

chart2.jpg

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

Business investment in the United States is on the rise. Bloomberg Markets reports that among the S&P 500 companies that have reported results for the first quarter of 2018, capital spending increased by 39%, the fastest growth in seven years. And once the second-quarter data is compiled and released, I’m assuming the pace of spending might be comparable. Again, tax reform provided a huge short- and long-term jolt to corporate spending plans on IT and we’re only in year one of results from the tax rate cut.

Beware of Seasonal Market Volatility in August and September

Regardless of the rosy outlook from Gartner that the bullish chart above paints, the very best tech stocks can go from being among the most highly-touted names in the universe to ones where investors can’t exit them fast enough. Careful stock selection includes how to avert the trap doors in highly crowded trades. Those seeking yield should consider using any rallies during August and September to sell covered call options against underlying tech stocks. Friday’s tape was (in my view) a sign of near-term overhead resistance that comes after the most influential companies have reported their Q2 numbers.

We’re now better than halfway through earnings season and, after hearing that the economy is cruising along at a 4%+ pace of growth, some selling on the news last Friday should have come as no surprise. The Nasdaq had made a big run (nearly 15% YTD through last Wednesday), so some well-deserved backing-and-filling seems to be in order. I expect the overall market to consolidate on seasonally lighter trading volume for the next four to six weeks and then get back into gear as the third quarter comes to a close. It could be quite choppy between now and then, but the economic fundamentals are too strong to derail the bull trend as I expect to see foreign money continue to flow into U.S. equities as a global safe haven.

With that understanding, any pullbacks will be constructive, relatively short-lived, and met with fresh buying interest on any meaningful dip. There is just too much global liquidity that wants to own the biggest, fastest growing, and most trusted market in the world. America’s economic prosperity should do much to lift the global markets as a whole and relieve much of the tension that has beset emerging markets. When the 800-pound gorilla does the heavy lifting for the rest of the world, everyone wins.

Any armor-piercing threats to the bull case will be much larger in scale than a summer slowdown in housing or a knee-jerk sell-off in an otherwise powerful tech sector. A few chinks here and there from headline risk are to be expected along the way when the investing world goes on vacation, leaving few to mind the affairs on Wall Street. When the heat of August and market volatility subside, however, the armor of this bull market can repel any and all attacks. And what if there is a meaningful breakthrough with China on trade talks, for if there is, the market may simply take off, declaring, “I am Batman!”

Meme.jpg

Growth Mail:

*All content of "Growth Mail" represents the opinion of Gary Alexander*

Brace Yourself! The Market’s Worst Month (-1%) Starts Tomorrow

by Gary Alexander

Are you ready to endure the worst month of the year – 31 days of heat and market torture, with Europe on endless vacation and the hostile U.S press nipping at the President’s heels? Despite a glorious earnings season, you’ll hear a parade of pundits warning once again of “peak earnings,” an end to the bull market, a recession ahead, mid-term elections, a trade war with China, and more. It’s market “hurricane season.”

Market historian and strategist Jeff Hirsch says that “August is the worst DJIA and S&P 500 month since 1987 with average declines of 1.3% and 1.0% respectively” making August the worst market month. The last 10 Augusts in the S&P 500 and Dow Industrials have been 50-50 (up or down), but -1% on average.

Table1.jpg

chart3.jpg

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

The August anomaly looks foreboding, but a 1% average decline isn’t bad – nor is the average 1.2% decline during August and September combined, especially when viewing that succulent +4.67% average compounded gain in the fourth quarter to come. And we can also hope for the August coin flip to fall in our favor and deliver a plus sign. After all, August was a great month long ago. August was up in 80% of the years before 1950. It was the #1 month in the first half of the 20th Century. The archaic reason for that anomaly is that America was primarily a farming nation then, so money flows from harvesting made August a cash-rich month. Now that fewer than 2% of us farm, August has become a fear-of-fall month.

The best August was in 1932 (+34.8%). The next August (1933) was up 12.8%. In modern times, the birth of the biggest bull market of the 20th Century began in August 1982, rising 11.5%, with a booster shot in August 1984, up another 10%, so two major market bottoms happened exactly 50 years apart in August. The net result was a pair of double-digit August gains in both 1932-33, and August of 1982-84:

Table2.jpg

August 1982 was great by the end of the month, but it started out with a major hurricane: Eight straight down days, August 3-12, as Fed Chairman Paul Volcker’s tight money policies threatened to fuel a new deflation: 1982 was our worst postwar recession, with 11% unemployment and GDP going down 1.8%. But markets tend to look forward and most traders realized that we were near a major market low in 1982.

Now, let’s turn to the fundamentals of what this August might deliver – a PLUS or a MINUS sign?

GDP Up 4.1% with “Silver Linings” Attached

On Friday, we learned that second-quarter GDP was up 4.1%, the best rate in nearly four years. There was also some good news buried in the small print: (1) Inventories were depleted, implying some inventory build-up needed this quarter, perhaps boosting industrial production. (2) Also, the Bureau of Economic Analysis (BEA) conducted their once-every-five-years audit of past years, with a couple of startling discoveries. One such discovery is that the savings rate was about 50% higher than initially reported.

chart4.jpg

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

The saving rate in 2016 and 2017 has now been reset at an average 6.7%, up from an initial reading of 4.2%. The 2017 gap is even more dramatic, doubling from an initial 3.4% to a revised 6.7%. This erases the worry that consumers have become too “pinched” to continue their recent surge of retail purchases.

Moving to the market, despite all the scare tactics in the press, the “trade war” with Europe may be over, and the one with China will likely be solved with some Trumpian brinksmanship around Labor Day. In the meantime, industry analysts keep raising their earnings and sales estimates for 2018 and 2019.

According to economist Ed Yardeni (in “Ahead & Behind Schedule,” July 25, 2018), “Remarkably, industry analysts are still raising their consensus estimate for next year, which has edged up to $177.34” for the S&P 500, while revenues are now expected to increase 7.9% this year and 5.1% next year.”

As of July 19, according to Yardeni, the actual, blended, and estimated year-over-year growth rates for 2018’s four quarters average 21:35%: Q1 (+23.2%), Q2 (+21.1%), Q3 (+22.4%), and Q4 (+18.7%). Because earnings are rising so rapidly, the market deserves a P/E ratio in the high teens, probably 17-18. By the end of 2018, the S&P 500 is likely to trade at anticipated 2019 earnings, now set at $177.34 (and possibly set to rise some more), so at various P/E levels, the S&P could rise a little or a lot by year’s end:

Table3.jpg

S&P 500 Operating Profit Margins are also at record highs: 11.4% for Q1 and 11.9% according to the latest estimates from Thomson Reuters, with 52-week forward profit margin estimates now at a record high 12.3% for the latest week (July 19), up from 11.1% when the tax bill was passed last December.

In summary, the S&P 500 performance, year-to-date (5.4%) is far behind both its trailing and forward earnings performance, so the “P” in the P/E ratio has some catching up to do with the “E” numbers.

August (or September) may deliver its traditional seasonal bump in the road, but that’s no reason to sell stocks now. Trimming some fat or switching sectors may be advisable, but not bailing out of the market.

Sector Spotlight:

*All content of "Sector Spotlight" represents the opinion of Jason Bodner*

Is Friday’s Tech Reversal “Real” or “Fake News”?

by Jason Bodner

In the 1970’s, a psychologist from Stanford and seven mentally healthy people participated in an unusual experiment. They got themselves into 12 different psychiatric hospitals in the U.S. (some had more than one stay). To get admitted, they pretended to hear voices. Once inside, the experiment began. They started acting normally and reported no voices. All 12 hospitals diagnosed each person with various disorders. The patients were all forced to take drugs and had to admit they had a mental disease before they could get released. It was known as the Rosenhan Experiment. If it sounds vaguely like the film, “One Flew Over the Cuckoo’s Nest,” you’re right. The film was released two years after the experiment, but it was based on the Ken Kesey novel of the same name released in 1962. Life imitating art? Or art imitating life?

school.jpg

That’s a terrifying thought – that reality can become what the environment dictates. Despite something actually being true, “crowd-think” can dictate a result which is entirely opposite to what it should be. Similar thinking has been observed in the past with manias like the Tulip Bulb Bubble, or the Salem Witch Trials. The point is that outcomes can be wrong based on crowd behavior, which defies logic.

The market got ugly on Friday. Information Technology dragged the market down and depressed most other sectors too. The real questions are: Is this serious? Is the market turning? Are we headed lower?

The answers lie in thoughtful analysis of the surroundings. As you’ll see, the backdrop says “up,” but emotion and observation may say “down.”  Rest assured, if the market heads lower, I believe it is a normal, temporary symptom of usual summer volatility. More importantly, I think it’s a chance to buy!

Let’s just look at earnings for a moment, as we are in the midst of earnings season. Despite the gloom after disappointing reports from Facebook (FB), which sank the stock as much as 20%, the overall earnings environment is great. According to FactSet’s Earning’s Insight, 53% of the S&P 500 has reported Q2 2018 earnings thus far, and 83% of companies reported a positive surprise and 77% beat sales. If these results hold, they will be the highest on record since FactSet began tracking them in 2008.

(Please note: Jason Bodner does not currently hold a position in Facebook. Navellier & Associates does currently own a position in Facebook for client portfolios).

The blended earnings growth rate is +21.3% over the same quarter last year, which would be the second highest rise on record. Nine of the 11 S&P sectors have higher earnings growth rates, due to positive revisions and beats. Sales growth is the highest since Q3 of 2011. In short, sales and earnings are kicking major butt, and are expected to continue doing the same – so let’s stop worrying about earnings.

chart5.jpg

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

Despite Trade War Fears, Industrials Lead the Pack in July

But what about tariffs and the looming trade war, which has engulfed the media’s headline space. Louis Navellier has been a skeptic and he has been right so far. In addition to what he writes in this issue about the EU President caving quickly and China’s chest thumping so they can say “I win” in the end, he told me over breakfast this weekend that his view is that the trade war will ultimately work in the favor of the U.S. because everyone needs us as a trade partner. Interestingly, 61% of companies that cited the word “tariff” on their earnings call said they saw no material impact on tariffs yet, so this risk seems over-rated.

Let’s take a quick look at those sectors that mentioned tariffs on their earnings calls. As you can see (in the chart below), Industrial companies had the most companies mentioning tariffs. This is interesting because as you’ll see, Industrials have been getting bought up. This is likely one reason, as they are not seeing a material impact from the trade war yet, and they’ve seen a month-to-date performance over 6%!

chart6.jpg

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

Next, let’s look at sector strength and weakness and see what we can glean from their behavior. Last week unsurprisingly saw Information Technology as the weakest sector performer with a -1.15% drawdown. That’s not bad, considering how Facebook pulled down the sector. We also saw some continued rotation out of the strongest sectors into weaker ones. Info-Tech and Consumer Discretionary have led the market for nine months. Last week saw an outflow from those sectors into Energy, Industrials, and Financials.

Industrials, Financials, and Health Care all are having greater than +5% moves in July thus far. We’ll have to wait for earnings season to conclude before we can tell if this is the start of a larger rotation, but for now Info-tech and Consumer Discretionary stocks are still performing well for the month.

chart7.jpg

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

As we end the month of July today, the bottom line for sectors in July is that we are still seeing strength in growth-oriented sectors. In fact, the only two sectors showing negative performance for July are Telecom and Real Estate. These are rate-sensitive sectors, so let’s stop worrying about the growth sectors.

Lastly, I just completed an in-depth study into the state of share buy-backs. Tax reform allowed a record amount of overseas cash to come home for favorable tax treatment. This caused a boom of companies buying back their own shares. As the number of outstanding shares dwindles, their P/E ratios tend to go up, pushing share prices up. In Q1 2018, companies completed $178 billion of buy-backs, rising more than 42% from Q1 of 2017. In May, U.S. companies announced $201.3 billion in stock buy-backs and cash takeovers, a record amount, with half of that being Apple. Tax reform encouraged the repatriation of cash, much of which went directly into the stock market, raising share prices. As long as interest rates and P/Es remain relatively low, which they should, buy-backs should persist, providing a floor for the market.

(Please note: Jason Bodner does not currently hold a position in Apple. Navellier & Associates does not currently own a position in Apple for client portfolios, however, clients may hold a position).

The numbers don’t lie. Sales and earnings are great. Tariffs and trade-wars are overblown fears, at least for now. Sector strength remains in high-growth areas. Add to all this record corporate buy-backs due to favorable corporate tax rates and I ask you: Where else can money go, and where else can the market go but up? I have harped on expected summer volatility and a usual seasonal swoon. When pressure comes, like Friday, don’t confuse sanity for insanity. Remind yourself: Data is sane, but there’s an art to markets.

Oscar Wilde said: “Life imitates Art far more than Art imitates Life.”

Oscar Wilde Quote Image

A Look Ahead:

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

Trade War Fears with Europe Start to Fizzle

by Louis Navellier

Tariff fears hit the news again last week. Commerce Secretary Wilbur Ross on Thursday commented that many of the tariffs that Europe imposed after World War II to help Germany and other countries recover are totally irrelevant today. Additionally, Europe has many farm subsidies that are outdated. During the Tour de France last Tuesday, some farmers protested reduced subsidies by placing hay bales on the course. As police tried to disperse protesters with pepper spray, unfortunately some pepper spray got in the eyes of some bikers, as well as some sheep. As a result, the Tour de France was temporary halted.

Despite some strong nationalistic support for tariffs within the European Union, EU President Jean-Claude Junker visited the White House on Wednesday and quickly reached an agreement with President Trump to “work together toward zero tariffs, zero non-tariff barriers, and zero subsidies on non-auto industrial goods.”  A group of senior advisors will be meeting to facilitate trade and lower barriers.

Since the EU and the U.S. combined account for more than half of the GDP and trade around the world, this new spirit of cooperation to ultimately eliminate tariffs is a big deal. As the U.S. makes progress with the EU to eliminate tariffs, this will ultimately put pressure on China to eliminate its tariffs as well. The reason that the U.S. should ultimately win these trade wars is simply because the U.S. has greater leverage, since the U.S. is the largest trading partner of China, the EU, as well as neighboring Mexico and Canada.

Interestingly, the Chinese yuan recently hit its lowest level in a year. Typically, before China has compromised in the past, it has purposely weakened its currency to try to gain a competitive export advantage. The fact that the People’s Bank of China is allowing the yuan to depreciate is a good sign that China may cooperate with the U.S. regarding the tariffs that were recently imposed to force China to open its markets to U.S. exporters. Currently, for every $1 the U.S. exports to China, the U.S. imports $3.87.

GDP Growth is Fine but Coastal Real Estate is Suffering

Housing Suburb Image

On Thursday, the Commerce Department said that durable goods orders rose 1% in June. Excluding the volatile transportation sector, which reported a 4.4% surge in vehicle orders (the largest monthly gain in three years), durable goods still rose a healthy 0.4% in June. Interestingly, demand for metals, including aluminum and steel, declined 0.4% in June, the second straight monthly decline since tariffs were imposed. However, outside of aluminum and steel, tariffs are not having any significant impact on trade.  

On Friday, the Commerce Department announced that its preliminary estimate for second-quarter GDP growth was an annual pace of 4.1%, which was below economists’ consensus estimate of 4.4%. Also, first-quarter GDP growth was revised up to 2.2% from the 2% previously reported. Consumer spending accelerated to a 4% annual pace. Business investment also grew at a healthy 5.4% pace. Inventories were being rapidly depleted, deducting 1% from the preliminary GDP estimate. However, this last point is very bullish for third-quarter GDP estimates, since those depleted inventories will need to be replenished.

The biggest negative in the economy continues to be the housing market. The latest example is that the National Association of Realtors announced last week that existing home sales declined in June for the third consecutive month to an annual pace of 5.38 million. In the past 12 months, existing home sales are running at a 2.2% lower annual pace, even though median home prices have risen 5.2% to $276,900.

On Wednesday, CoreLogic reported that in Southern California, homes sales have declined by 11.8% in June vs. the same month a year ago. New home sales were especially alarming, declining by 47% in Southern California vs. a year ago. Affordability may be the problem as median home prices in Southern California hit a record of $536,250 in June, up 7.3% in the past year, but the new tax law is also a factor.

Another depressed housing market is New York City, where international buyers have been largely absent in the past 18 months. Furthermore, even the rental market in New York City is now experiencing a glut. Since both California and New York are high-tax states that are penalized under the 2018 tax reform that severely restricts both state income tax and property tax deductions, there is a concern that the glut of high-end homes for sale in both California and New York will continue to grow. As a result, I will be carefully monitoring consumer confidence for any potential concerns about the slowdown in home sales.


It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list. Click here to see the preceding 12 month trade report.

Although information in these reports has been obtained from and is based upon sources that Navellier believes to be reliable, Navellier does not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute Navellier's judgment as of the date the report was created and are subject to change without notice. These reports are for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of a security. Any decision to purchase securities mentioned in these reports must take into account existing public information on such securities or any registered prospectus.

Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any securities recommendations made by Navellier. in the future will be profitable or equal the performance of securities made in this report.

Dividend payments are not guaranteed. The amount of a dividend payment, if any, can vary over time and issuers may reduce dividends paid on securities in the event of a recession or adverse event affecting a specific industry or issuer.

None of the stock information, data, and company information presented herein constitutes a recommendation by Navellier or a solicitation of any offer to buy or sell any securities. Any specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The reader should not assume that investments in the securities identified and discussed were or will be profitable.

Information presented is general information that does not take into account your individual circumstances, financial situation, or needs, nor does it present a personalized recommendation to you. Individual stocks presented may not be suitable for you. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. Investment in fixed income securities has the potential for the investment return and principal value of an investment to fluctuate so that an investor's holdings, when redeemed, may be worth less than their original cost.

One cannot invest directly in an index. Results presented include the reinvestment of all dividends and other earnings.

Past performance is no indication of future results.

FEDERAL TAX ADVICE DISCLAIMER: As required by U.S. Treasury Regulations, you are informed that, to the extent this presentation includes any federal tax advice, the presentation is not intended or written by Navellier to be used, and cannot be used, for the purpose of avoiding federal tax penalties. Navellier does not advise on any income tax requirements or issues. Use of any information presented by Navellier is for general information only and does not represent tax advice either express or implied. You are encouraged to seek professional tax advice for income tax questions and assistance.

IMPORTANT NEWSLETTER DISCLOSURE: The performance results for investment newsletters that are authored or edited by Louis Navellier, including Louis Navellier's Growth Investor, Louis Navellier's Breakthrough Stocks, Louis Navellier's Accelerated Profits, and Louis Navellier's Platinum Club, are not based on any actual securities trading, portfolio, or accounts, and the newsletters' reported performances should be considered mere "paper" or proforma performance results. Navellier & Associates, Inc. does not have any relation to or affiliation with the owner of these newsletters. There are material differences between Navellier & Associates' Investment Products and the InvestorPlace Media, LLC newsletter portfolios authored by Louis Navellier. The InvestorPlace Media, LLC newsletters and advertising materials authored by Louis Navellier typically contain performance claims that do not include transaction costs, advisory fees, or other fees a client may incur. As a result, newsletter performance should not be used to evaluate Navellier Investment Products. The owner of the newsletters is InvestorPlace Media, LLC and any questions concerning the newsletters, including any newsletter advertising or performance claims, should be referred to InvestorPlace Media, LLC at (800) 718-8289.

Please note that Navellier & Associates and the Navellier Private Client Group are managed completely independent of the newsletters owned and published by InvestorPlace Media, LLC and written and edited by Louis Navellier, and investment performance of the newsletters should in no way be considered indicative of potential future investment performance for any Navellier & Associates separately managed account portfolio. Potential investors should consult with their financial advisor before investing in any Navellier Investment Product.

Navellier claims compliance with Global Investment Performance Standards (GIPS). To receive a complete list and descriptions of Navellier's composites and/or a presentation that adheres to the GIPS standards, please contact Navellier or click here. It should not be assumed that any securities recommendations made by Navellier & Associates, Inc. in the future will be profitable or equal the performance of securities made in this report. Request here a list of recommendations made by Navellier & Associates, Inc. for the preceding twelve months, please contact Tim Hope at (775) 785-9416.

Marketmail Archives Trade Summary

It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list. Click here to see the preceding 12 month trade report.

Although information in these reports has been obtained from and is based upon sources that Navellier believes to be reliable, Navellier does not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute Navellier's judgment as of the date the report was created and are subject to change without notice. These reports are for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of a security. Any decision to purchase securities mentioned in these reports must take into account existing public information on such securities or any registered prospectus.

Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any securities recommendations made by Navellier. in the future will be profitable or equal the performance of securities made in this report.

Dividend payments are not guaranteed. The amount of a dividend payment, if any, can vary over time and issuers may reduce dividends paid on securities in the event of a recession or adverse event affecting a specific industry or issuer.

None of the stock information, data, and company information presented herein constitutes a recommendation by Navellier or a solicitation of any offer to buy or sell any securities. Any specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. The reader should not assume that investments in the securities identified and discussed were or will be profitable.

Information presented is general information that does not take into account your individual circumstances, financial situation, or needs, nor does it present a personalized recommendation to you. Individual stocks presented may not be suitable for you. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. Investment in fixed income securities has the potential for the investment return and principal value of an investment to fluctuate so that an investor's holdings, when redeemed, may be worth less than their original cost.

One cannot invest directly in an index. Results presented include the reinvestment of all dividends and other earnings.

Past performance is no indication of future results.

FEDERAL TAX ADVICE DISCLAIMER: As required by U.S. Treasury Regulations, you are informed that, to the extent this presentation includes any federal tax advice, the presentation is not intended or written by Navellier to be used, and cannot be used, for the purpose of avoiding federal tax penalties. Navellier does not advise on any income tax requirements or issues. Use of any information presented by Navellier is for general information only and does not represent tax advice either express or implied. You are encouraged to seek professional tax advice for income tax questions and assistance.

IMPORTANT NEWSLETTER DISCLOSURE: The performance results for investment newsletters that are authored or edited by Louis Navellier, including Louis Navellier's Growth Investor, Louis Navellier's Breakthrough Stocks, Louis Navellier's Accelerated Profits, and Louis Navellier's Platinum Club, are not based on any actual securities trading, portfolio, or accounts, and the newsletters' reported performances should be considered mere "paper" or proforma performance results. Navellier & Associates, Inc. does not have any relation to or affiliation with the owner of these newsletters. There are material differences between Navellier & Associates' Investment Products and the InvestorPlace Media, LLC newsletter portfolios authored by Louis Navellier. The InvestorPlace Media, LLC newsletters and advertising materials authored by Louis Navellier typically contain performance claims that do not include transaction costs, advisory fees, or other fees a client may incur. As a result, newsletter performance should not be used to evaluate Navellier Investment Products. The owner of the newsletters is InvestorPlace Media, LLC and any questions concerning the newsletters, including any newsletter advertising or performance claims, should be referred to InvestorPlace Media, LLC at (800) 718-8289.

Please note that Navellier & Associates and the Navellier Private Client Group are managed completely independent of the newsletters owned and published by InvestorPlace Media, LLC and written and edited by Louis Navellier, and investment performance of the newsletters should in no way be considered indicative of potential future investment performance for any Navellier & Associates separately managed account portfolio. Potential investors should consult with their financial advisor before investing in any Navellier Investment Product.

Navellier claims compliance with Global Investment Performance Standards (GIPS). To receive a complete list and descriptions of Navellier's composites and/or a presentation that adheres to the GIPS standards, please contact Navellier or click here. It should not be assumed that any securities recommendations made by Navellier & Associates, Inc. in the future will be profitable or equal the performance of securities made in this report. Request here a list of recommendations made by Navellier & Associates, Inc. for the preceding twelve months, please contact Tim Hope at (775) 785-9416.

Marketmail Archives