War Drums Send Stocks Down

North Korean War Drums Send Stocks Down…Temporarily

by Louis Navellier

August 15, 2017

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

Despite strength early in the week, including another all-time high in the S&P 500, the stock market got nervous on Thursday due to rising tensions caused by North Korea and its direct threats to the U.S. and Guam. The S&P fell 1.43% by week’s end.  President Trump’s “fire and fury” comment triggered some selling, but most observers believe that no immediate military action is likely.  Secretary of State Rex Tillerson said that “Americans should sleep well at night,” implying that Japan, China, and South Korea are all likely to be consulted before any military response is planned or executed against North Korea.

North Korean Statue Image

Furthermore, it typically takes time to see if sanctions will work before contemplating any military response, since there are still exhaustive diplomatic channels that can be exploited, especially via China.  In the meantime, President Trump on Friday said that “military solutions are now fully in place, locked and loaded, should North Korea act unwisely.”  In a move to convince Kim Jong Un to tone down his anti-American rhetoric, President Trump added, “Hopefully Kim Jong Un will find another path.”

Meanwhile, the safest place to invest is where the money is flowing.  With the weakening U.S. dollar, the flow of funds into international stocks remains relentless.  Since many international companies do not want to comply with strict U.S. accounting standards, there are fewer American Depositary Receipts (ADRs) than ever. As a result, they are attracting a disproportionate amount of international fund flows.

In This Issue

Bryan Perry takes a closer look at the war clouds hanging over Wall Street and cautions a move toward safe harbors.  Gary Alexander looks at the dramatic birth of the last great bull market on this date 35 years ago, while Ivan Martchev gives us a snapshot of life and economic realities in his native Bulgaria.  Jason Bodner uses the principles of magic to ask if this market’s levitation is for real or an illusion.  In the end, I cover the latest deflationary statistics along with a fresh look at one of our biggest holdings, NVIDIA. (Please note: Louie Navellier does not currently hold a position in NVIDIA. Navellier & Associates does currently own a position in NVIDIA for client portfolios).

Income Mail:
Safe-Haven Investing is Back in Style
by Bryan Perry
This Is No Time To “See No Evil”

Growth Mail:
Happy 35th Birthday to the Greatest Bull Market of All
by Gary Alexander
The “Secret Ingredient” of the Biggest Bull Markets Since 1962

Global Mail:
Primary Research in the Emerging Markets
by Ivan Martchev
Sinking Bulgarian Bond Yields Signal Deflation

Sector Spotlight:
Is Market Levitation for Real, or a Magic Trick?
by Jason Bodner
Info-Tech is Still #1 Long-Term, with Energy Last

A Look Ahead:
Deflation Greets the Central Bankers in Jackson Hole
by Louis Navellier
What Happened to NVIDIA?

Income Mail:

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

Safe-Haven Investing is Back in Style

by Bryan Perry

Late summer is historically a time of market turbulence. Not only is the August-September timeframe a period of lower-volume trading – coming at the end of second-quarter reporting season – it tends to be more volatile if negative news crosses the tape. Today, geopolitical tensions over the scope and scale of the North Korean conflict are driving volatility higher and calling into question the market’s bullish trend.

While the hottest names in the tech sector have led the major averages for most of the year, financials caught a firm bid following strong employment data that prompted bond yields to tick higher. Just when it seemed the bulls were about to take out the 2,500 level for the S&P 500 and lure more cash from off the sidelines, the war of words erupted between President Trump and North Korean dictator Kim Jong Un.

Up until early last week, market participants had been taking the heated rhetoric in stride and were especially relieved when the UN Security Council voted 9-0 to impose fresh sanctions on North Korea following the latest unlawful missile tests. The new sanctions are stiff, aimed at countering the threat posed by Pyongyang's nuclear program following two intercontinental ballistic missile tests in July. The United States-drafted resolution comes after weeks of tough rhetoric, with the President having recently taken aim at China for supposedly not doing enough to counter the renegade North Korean regime.

After the sanction vote, U.S. Ambassador to the United Nations Nikki Haley said the U.S. “is taking and will continue to take prudent defensive measures to protect ourselves and our allies” from the threat posed by North Korea, calling the new resolution “the single largest economic package ever levelled against the North Korean regime.” The new resolution bans North Korean exports of coal, iron, iron ore, lead, lead ore, and seafood. It also prohibits countries from increasing the current numbers of North Korean laborers working abroad, bans new joint ventures with North Korea and any expansion of current joint ventures.

The escalation of threats and counter-threats now has investors taking the possibility of diplomatic failure more seriously. Rather than endure the uncertainty of the multiple scenarios that could unfold, some investors have begun to rotate out of the “FANG” stocks, the IBD 90-90 stocks, and all the other ‘hotties’ on the speed charts – many with P/E ratios over 50 – and into the bastions of safer havens, which would include defense contractors; telecom service providers; consumer staples; utilities; select healthcare; gold; Treasuries; currency shares denominated in dollars, yen, and Swiss francs; long volatility; and index puts.

This Is No Time To “See No Evil”

The essence of a Black Swan event is that it is rare, unpredictable and has a major impact. A Black Swan is rationalized in hindsight as having been “predictable.” Given the nuclear-barbed rhetoric last week, one could make an argument that a nuclear war with North Korea is predictable. That doesn't mean, however, that it wouldn’t have a major impact and be a shock, since it would be the first nuclear attack in 72 years.

Past experience has shown that North Korea has often made threats about its war readiness and military capabilities, but it hasn’t ever pushed the literal button to start a war. That understanding has created a prevailing sense that “this is just Kim Jong Un talking nonsense again.”

The disarming difference this time is that North Korea has succeeded in producing a miniature nuclear warhead that can fit inside its missiles (Washington Post, August 8, 2017, “North Korea now making missile-ready nuclear weapons, U.S. analysts say”). Pair that capability with a maniacal leader and the unthinkable act gains semblance of being possible. Once again, the nature of a Black Swan event is that it is unpredictable. Its time is not known, but any event will certainly matter in a big way for many people.

One major key to disarming this situation is the role China plays in the coming days and weeks. North Korea is their stepchild. China accounts for 90% of North Korea’s economic existence. Peel back the paint on the vast majority of North Korea’s weapons and there will be a clear label: “Made In China.”

If the threat of military engagement escalates to the realm of probability, the installation of tariffs on Chinese goods might be the next course of action that pressures China’s leaders to rein in Kim Jung-Un. Squeezing China economically is, in my view, the best non-military option to deal with a fanatic who is bent on developing an effective nuclear arsenal – and it sure beats the hell out of having to deal with a second major war on the Korean peninsula, where there seems to be no good military option now.

I have yet to hear one military strategist claim that disarming North Korea won’t come without massive collateral damage to Seoul, South Korea, and the 28,500 troops in the DMZ. With this understanding, it’s hard to think past the notion that some sort of negotiated outcome won’t result in a de-escalation of tensions that might provide a face-saving solution for Kim Jung-Un, and China for that matter.

What Wall Street is now coming to terms with is that it won’t be long before we know how the various scenarios will likely play out. To that end, having more exposure to the safer haven sectors of the stock market might prove wise when there are sightings of possible Black Swans in the distance.

Growth Mail:

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

Happy 35th Birthday to the Greatest Bull Market of All

by Gary Alexander

The greatest bull market of all time was born August 13, 1982, but there was no birthday celebration by the press.  Instead, we saw stories comparing the current situation to the crash years of 1929 and 1987.

Here are three sample articles from late last week, all featuring terrifying predictions of a coming crash:

  • “Top Economist: Get Ready for a Stock Market Drop” – Fortune, August 10, 2017
  • “Michael Moore Predicts Trump-driven Economic Crash.” – MarketWatch, August 11, 2017
  • “Dow at 1989 Levels, Amazon at $4: What a 1929-Style Crash Would Look Like Today.”

– MarketWatch, August 11, 2017

Over the weekend, I searched in vain for any article commemorating the 35th anniversary of the greatest bull market of the last century.  “El Toro Grande” (Ron Miller’s term) was born on August 13, 1982.  It was born with an odd pair of lucky numbers: 13 and 777.  The baby bull was born on a Friday the 13th in the 13th quarter of net negative GDP growth, with a Las Vegas-style lucky low of Dow 777 on August 12.

There were two other 15-18-year mega-bull markets in the last century but 1982-99 was the best by far:

The Three Biggest Mega-Bull Markets of the Twentieth Century Table

Previous to 1982, the Dow kept butting its head on the 1,000 ceiling, first with a close of 995 in 1966 (see chart below), then a few brief penetrations of the 1,000 barrier in 1973, 1976, and 1981.  In 1982, however, the Dow broke through 1,000 with explosive power, hitting 1287 by late 1983, and 2722 in August, 1987.

Dow Jones's 1000 Line of Death Chart

The summer of 1982 seemed like 1932 all over again – maybe worse, since the Prime Rate hit 21.5%, unemployment hit 11.2%, and inflation reached 13% at its peak.  Banks were failing right and left.  After Penn Square Bank in Oklahoma City failed in August 1982, Fed Chairman Paul Volcker flew home from a fishing vacation and – in the parlance of the day – blinked.  Since taking office in 1979, Volcker had throttled inflation by raising interest rates sky high, turning off the printing press, and choking liquidity.

There was also a Latin American debt crisis.  Inflation rates were triple-digit in Argentina (130%) and Brazil (100%).  The Mexican stock market fell 80% in U.S. dollar terms in the first nine months of 1982. At the time, pundits (and I) were predicting another Great Depression – based on the 50-year Kondratieff Wave (a popular theory of the time).  But the world avoided another 1930s Depression by remembering the mistakes of that era.  Instead of reducing money supply, as in the 1930s, the Fed turned on the spigots.

In the second half of 1982, Volcker cut the Discount Rate five times within five months, from 12.0% in July to 8.5% in November.  In response, short-term (90-day) T-bills declined from 13.3% to 7.8% in the third quarter, and banks lowered their Prime Rate from 21% to 13%.  The crisis was suddenly over.

For the week of August 16-20, 1982, the Dow gained 79.11 points (+10.3%), to close at 869.29, the second best weekly percentage gain since 1940.  Tuesday, August 17 was the day El Toro Grande began snorting.  On that day, the Dow shot up 38.31 points (+5%), the fifth largest daily gain since 1950 (by percent), and the largest single daily point gain to that date.  The 5% gain on August 17 told most investors that the dark days were over for good.  Ironically, exactly five years later, on August 17, 1987, the Dow closed above 2,700 for the first time (at 2,700.57).  It would peak one week later, at 2,722.42.

The “Secret Ingredient” of the Biggest Bull Markets Since 1962

“A bill will be presented to the Congress for action next year. It will include an across-the-board, top-to-bottom cut in both corporate and personal income taxes. It will include long-needed tax reform that logic and equity demand … Every dollar released from taxation that is spent or invested will help create a new job and a new salary. And these new jobs and new salaries can create other jobs and other salaries and more customers and more growth for an expanding American economy.”

– President John F. Kennedy, August 13, 1962, in a national radio/TV broadcast.

While the Trump administration keeps wasting time over the Obamacare repeal and replace stalemate, I’ve been saying he should make tax reform Job #1.  He can take a lesson from a Democrat in this regard.

On August 13, 1962, President John F. Kennedy promised an “across-the-board, top-to-bottom” cut in corporate and personal taxes, due to take effect on January 1, 1963.  The Dow shot up 3% that week, launching a 16.2% second-half gain.  Kennedy’s tax cuts were delayed in Congress, but the next President, Lyndon Johnson, followed up on Kennedy’s promise in 1964, accelerating the market’s gains.

The “Kennedy-Johnson” tax cut (the Revenue Act of 1964), signed into law on February 26, 1964, cut the top rate from 91% to 70%, while all other rates fell and a standard deduction was added.  Prosperity soon erupted: The jobless rate fell from 5.2% in 1964 to 3.8% in 1966 and 3.5% in 1969, the lowest rate in the last 50 years.  Initial fears of a loss of revenue were forgotten when tax revenues increased each year – so much so that the federal budget was balanced (with a surplus!) in 1969, despite LBJ’s “guns and butter” (welfare and war) spending, plus the project of landing men on the moon and the launching of Medicare.

The next major bull market began on August 13, 1982, but the seeds of recovery were sown in the Economic Recovery Tax Act of 1981, reducing the top income tax rate from 70% to 50% while phasing in 25% cuts in individual rates over three years: 5% cuts in 1981, 10% cuts in 1982, and 10% cuts in 1983.

Another 20 years passed before the next major tax cuts.  The Jobs & Growth Tax Relief Reconciliation Act of 2003 was signed into law on May 28, 2003, reducing the top tax rate to 35%, while cutting long-term capital gains and dividend rates sharply.  The resulting prosperity engendered a five-year bull market.

In summary, tax cuts in the early 1960s, 1980s, and 2000s each led to significant stock market gains:

Dow Jones Stock Market Cycle Peak Table

Are you listening, President Trump and Congress?  Make corporate tax reform your Goal #1 in 2017.

Global Mail:

*All content of "Global Mail" represents the opinion of Ivan Martchev*

Primary Research in the Emerging Markets

by Ivan Martchev

Haskovo, Bulgaria: According to Google Maps, my hometown of Haskovo, Bulgaria is 7777 kilometers from New York, where my work is. That’s 4832.4 miles. At the end of the street where my family home is located there is a tire shop. Driving by the shop, I noticed something rather peculiar so I stopped and took a picture. It was a portrait of communist dictator Todor Zhivkov, who ruled Bulgaria, 1954 to 1989.

Bulgarian Communist Dictator Todor Zhivkov Image

The sign under the picture reads: “Todor Zhivkov used to say: ‘All this that we have built [under my leadership], you can’t even paint it right now.’” The implication is that Zhivkov’s rule brought prosperity for the average Bulgarian while the present economic environment is bleak. I did find it somewhat ironic that my photo includes the back end of a Mercedes Benz S-class getting its tires serviced right in front of Zhivkov’s picture. In itself, this is a sign of prosperity. Seeing a top-end Mercedes was extremely rare in Zhivkov’s days. If you spotted one, it was likely transporting a high-ranking Communist Party official.

Apparently, this tire shop owner has built a monument to his favorite communist dictator, even though he would not have been able to own a tire shop in Zhivkov’s time. I understand why some people who have been left out of the present day economic boom might miss the old days, but the fact remains that Bulgaria is two to four times better off now than when Zhivkov was in power, in terms of per capita GDP.

Bulgarian Gross Domestic Product versus Bulgarian Population Chart

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

Why 2-4 times? Total GDP is up twofold from the best days of Zhivkov’s leadership in the late 1980s while the total population is down from about nine million to 7.1 million. Some people that do not live in the country are double-counted so the population may be less than 7 million. If total GDP has doubled and the population is less, that means GDP per capita has more than doubled since Zhivkov’s best days.

The other issue is that Bulgarians, similarly to the recent infamous case of Greece, don't like paying taxes. Tax evaders conduct a lot of business “under the table” – a popular local expression that describes the unofficial economy. In fact, tax evasion is so pervasive that the black market is likely 50% to 100% the size of official GDP. I have seen studies that estimate the black market (deduced by the amounts of VAT tax collected, money that business owners spend but don’t report) is larger than the official GDP number.

Sinking Bulgarian Bond Yields Signal Deflation

The migration of disenchanted people looking for a better life in the EU – or the U.S., for that matter – is highly deflationary. After the 2001-2007 economic boom driven by EU accession funds and a speculative building cycle, the economy has slowed and interest rates have collapsed. The 10-year bond yields 1.75%.

Bulgarian Ten Year Government Bond versus Bulgarian Stock Market Chart

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

The stock market index has started to recover after falling from 1850 to 250, but some of that rally in the past year is the pricing out of EU disintegration risk, which in early 2017 looked to be significant. This is also evident in the EURUSD cross rate which in 2017 has moved from under $1.04 to over $1.18.

Euro and United States Dollar Exchange Rate Chart

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

My guess is the euro rally is overdone and the EU anti-disintegration trade has more or less run out. This basically means that smaller stock markets in the region, like Bulgaria, will moderate their pace of gains. If the EU survives Brexit, Bulgaria should see better days after it joins the euro and gets a government that thinks more seriously about regional development, because right now we have seen 28 years where the capital Sofia and the beach coastline are booming, while the middle of the country sees rising numbers of deserted houses and empty apartments. If there is no work, people simply leave and/or have fewer kids.

I took a walk through an old industrial part of the outskirts of my hometown. Other than a brand-new home improvement store, there was a mile-long stretch along the main road filled mostly with abandoned industrial buildings, overtaken by weeds. It reminded me of buildings in Detroit that I have seen on TV.

“Some of those people that build monuments to dictators like Zhivkov probably worked there,” I thought.

Sector Spotlight:

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

Is Market Levitation for Real, or a Magic Trick?

by Jason Bodner

Perception is reality. We have all heard this before. We know it to be true, yet we still manage to be fooled by our perceptions, seemingly on a daily basis. The best illusionists thrive on ancient secrets that leave our jaws open and our minds blown. Magic isn’t only entertainment, it is based on science. A few years back, several top magicians co-authored a scientific paper discussing how magic exploits the natural flaws of human perception. The basic premise is that science understands the human brain, cognitive processing, and how magic tricks manage to “short circuit” the basic sensory perception of human beings.

Renowned pickpocket Apollo Robbins can choose a subject at random, put him on stage, inform him he is about to have his pocket picked, and still manage to do so without the subject knowing. The same goes for Penn and Teller’s take on the old cup-and-balls trick. Three single balls seemingly magically move from under each of three overturned cups to all three balls ending up in one overturned cup. The twist? They used transparent cups! The observer knows they are getting tricked and still manage to get tricked! Better yet, they actually pay for the privilege of being predictably deceived! That's human nature for you!

Penn and Teller Magic Trick Image

In short, magicians identify the basic human traits that can be exploited and manipulated to the gain of the performer and the detriment of the mark. The same principles are applied every day in several media, in politics, and in markets. Misperception and misdirection happen on a massive scale as well. A while back I detailed the remarkable story of a deceased British hobo used as a prop to pose as a dead spy carrying the secrets of a bogus attack in WWII to misdirect the Germans, which may have ultimately led to a shift in the tides of war. This is a perfect example of planned misdirection by high-level governments at war.

Specifically, we may be witnessing misdirection in the current escalating tensions between the U.S. and North Korea. The headlines have become saturated with the Korean story, conveniently moving the chaotic current administration staff changes and Russian investigation to the distant background. The one thing that can be said about recent attacks on the accuracy of media ("fake news") is that it causes people to question what is real and what isn’t. I'll leave others to debate if we are being deceived by the media, as I turn to a more relevant question (to investors): Are we seeing misdirection in the market?

Trump versus Kim Jong Un Image

With all the bad press about the current president, his volatile staffing situations, the global challenges of foreign relations, and a looming threat of nuclear combat, stocks continue to largely defy gravity and soar higher. Last Thursday, we saw some welcome (in my view) distribution, but the market is still undeniably strong overall. Sales and earnings are largely working as reports have come in stronger for a vast majority of reporting companies. The economy is strengthening, as the market likes the current fundamentals.

Info-Tech is Still #1 Long-Term, with Energy Last

While the weather seems “clear and hot” in the stock market, we are entering the traditional storm season. August is a seasonally weak period for stocks. Liquidity falls, vacation daydreams spike, and some market magicians seize this opportunity to manipulate their mark while their attention is elsewhere.

How does this jive with how the market fared last week?

Standard and Poor's 500 Weekly, Quarterly, Semiannual, and Nine-month Sector Indices Tables

While Thursday was a profit-taking day, this past week saw a lot of attention devoted to tech and some froth finally being taken out. I have seen a lot of articles comparing the current tech strength of the last year to the infamous 1990s internet bubble. The key difference, however, is that many tech companies now make money, and a lot of it. The late 90s vault off the cliff was based solely on speculation. The reality is investors weren't wrong in their assessment that tech and the internet was the future, but they were just too euphoric. Valuations soared up to infinite multiples on no earnings. They were early but not wrong. Tech is still a place where I see the strong leaders of tomorrow continuing to emerge today.

With all of those snappy headlines about loving or hating tech, energy was the real loser. As we had foreseen, energy likely lured some into thinking a rally was in the making. The reality, however, was that the energy sector hit the top of a down-trending channel, only to resume its fall. This past week saw the sector as our weakest performer at -2.87%. It was followed closely by Financials -2.70 and Materials down 2.12%. Longer-term, the nine-month performance table sees Information Technology as a clear winner at +24.25%, while Energy is sucking wind at -8.15%.

Let’s compare the S&P 500 Energy Index with the Nasdaq Composite Index:

Standard and Poor's 500 Energy Sector versus NASDAQ Composite Index Chart

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

So, as the market hits some rough patches and stocks slip and slide in a seasonally weak period of the year, it helps to remind ourselves that this should be expected in August. We may know that weakness will come. We may even know our stocks are at nosebleed levels. We may see a chart that is parabolic upwards, but we may still not sell, believing that it could go higher and we can grab ‘a few extra points.’

At that point, we become the mark, ripe for the market to perform its illusions on us. The great news however, is that the time-tested recipe of picking stocks with growing earnings and sales, amongst other important metrics, is a recipe for long-term success. If we keep the long term in mind and in plain sight, we can actually afford to be fooled. As Terry Pratchett said, “It's still magic even if you know how it's done.”

Terry Pratchett 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.*

Deflation Greets the Central Bankers in Jackson Hole

by Louis Navellier

Next week (August 24-26), many leading central bankers will converge in Jackson Hole, Wyoming for the annual late summer meeting sponsored by the Kansas City regional Federal Reserve Bank.  Even though the subject this year is “Fostering a Dynamic Global Economy,” deflation will be on their minds.

Last Thursday, the Labor Department announced that the Producer Price Index (PPI) declined 0.1% in July, below economists’ consensus estimate of a 0.1% increase.  This is the first time the PPI has declined in the past 11 months.  The negative numbers were evident in multiple categories: Service costs declined 0.2% and wholesale energy prices fell 0.3%.  On Friday, the Labor Department announced that the Consumer Price Index (CPI) rose 0.1%, but a 0.5% decline in new and used vehicle prices and a 0.3% decline in cell phone prices helped to keep the core CPI low in July.  In the past 12 months, both the CPI and core CPI have risen 1.7%.  So, overall, deflationary pressures persist in the U.S. and global economies.

In the energy sector, both the American Petroleum Institute (API) and the Energy Information Administration (EIA) confirmed last week that crude oil inventories continued to decline in the latest week by 7.8 million barrels and 6.5 million barrels, in their respective reports.  Also keeping energy prices low is the fact that OPEC on Thursday reported that its output rose by 0.5% in July, due largely to higher production from Libya, Nigeria, and Saudi Arabia; so the global supply glut is expected to persist, especially since demand typically declines in September as the Northern Hemisphere’s weather cools.

Oil Rig Pump Jacks Image

Interestingly, lower crude oil prices and higher domestic production are helping to narrow the trade deficit and boost overall GDP growth.  Not only do I expect a significant upward second-quarter GDP revision, due to the fact that the June trade deficit was less than expected, but I also expect that third-quarter GDP growth will reach a 3% annual rate.  In fact, the Atlanta Fed is currently expecting 3.7% annual GDP growth in the third quarter.  Due to corn, soybean, and wheat harvests, the third quarter tends to be one of the strongest quarters for GDP growth.  In fact, last year’s 3Q GDP grew at a 3.5% annual pace due to high soybeans prices, since Argentina had a severe drought that drove worldwide soybean prices higher.

What Happened to NVIDIA?

On Thursday, NVIDIA came through and announced that its second-quarter sales surged 55.9% to $2.23 billion compared to $1.43 billion in the same quarter a year ago.  During the same period, the company’s operating earnings rose 90.6% to $638 million or $1.01 per share compared to $313 million or 53 cents per share.  The analyst community was expecting sales of $1.96 billion and operating earnings of 69 cents per share, so NVIDIA posted an impressive 13.8% sales surprise and a stunning 46.4% earnings surprise!

What happened next?  The stock fell, mostly because their earnings happened to be released on a down day for the overall market.  The fact that NVIDIA did not immediately rally in the wake of its stunning sales and earnings, despite raising its guidance, is a bit troublesome and indicative that we are deep in the summer doldrums.  However, since analysts will likely raise their estimates higher due to the company’s guidance, I expect to see a big rebound in NVIDIA in the upcoming weeks. (Please note: Louie Navellier does not currently hold a position in NVIDIA. Navellier & Associates does currently own a position in NVIDIA for client portfolios).


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