INVESTMENT COMMENTARY & Outlook
July 2024
The Wall Street hates uncertainty and fortunately, all of a sudden, everything is now much more certain. The Fed will be following other major central banks and cutting key interest rates no later than September 18th. Economic incentives are expected to be passed in Europe. The U.S. dollar has been amazingly strong, since the U.S. is expected to lead a worldwide economic recovery. A strong U.S. dollar can hinder multinational companies like the big stocks that dominate the S&P 500, however smaller, more domestic companies are poised to prosper!
As always, an investor’s best defense remains a strong offense. The expectations for the second-quarter earnings remain very high, with 8.8% forecasted annual earnings growth for the S&P 500. We should add that these are the highest forecasted earnings growth since the first quarter of 2022. At the end of each quarterly announcement season, we retest how Navellier’s Stock Grader is performing. The main conclusion from the latest backtest is that the Top 5% of our 6,000+ stock universe is the place to be, as the attached …