Global Interest Rates Continue to Drift Lower

Excerpt from Louis Navellier's Marketmail - 7/9/2019

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The big news last week was the continued worldwide decline in interest rates, as the German 10-year bond hit -0.397%. A shocking 25% of all the government debt around the world now has negative yields, and the U.S. 10-year Treasury bond fell to 1.943% on Wednesday, leaving no doubt that the Fed will cut key interest rates at its upcoming Federal Open Market Committee (FOMC) meeting in late July.

Due to weak economic news in most nations, we can expect continued rate cuts by central banks around the world in the upcoming months. On Tuesday, the Reserve Bank of Australia cut its key interest rate by 0.25% to 1%. This is the second 0.25% cut that the Reserve Bank of Australia has made in its past two meetings. I also expect that the European Central Bank (ECB) will also cut its key interest rate by 0.25%.


In This Issue of Marketmail (Click Here to Read)

There are plenty of investor concerns out there – which Bryan Perry itemizes – but investors are climbing that “wall of worry” to new market highs, with an outlook for more new highs in the second half. Gary Alexander agrees, seeing hope for popular support for most of the pillars of economic freedom which underlie long-term global growth. Ivan Martchev reminds us that the first micro-rate-cut is already behind us, with bigger rate cuts to come. Jason Bodner expected a quiet holiday week but got some unexpected positive action from insider data. I’ll close with a look at the new ECB structure and U.S. economic data.


Income Mail: Stock Indexes Scaling the “Wall of Worry,” Like Sir Edmond Hilary

By Bryan Perry

A Confluence of Factors – and Plenty of Confusion

Growth Mail: Global Growth is Relatively New and Fragile – Don’t Destroy It

By Gary Alexander

These 7 Pillars of Economic Freedom Promote Per Capita GDP Growth

Global Mail: The First Fed Rate Cut is Already Behind Us

By Ivan Martchev

Valid Points from My Alert Readers

Sector Spotlight: Unexpected Positives Hidden Deep in the Data

By Jason Bodner

Where We Stand at the Mid-Year Break

A Look Ahead: A Change of Leadership (But not Direction) at the ECB

By Louis Navellier

As the World Inches Toward a Global Recession, the U.S. Remains the Oasis

Stocks Enjoy Their Best First Half in Over 20 Years

Excerpt from Louis Navellier's Marketmail - 7/2/2019

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The S&P 500 posted its best first half (+17.3%) since 1997, capped by the best June (+6.9%) since 1955. Stocks were especially strong on the last two days of June, likely to quarter-ending window dressing, which is a very good sign that institutional buying pressure will likely persist as earnings season heats up!

Early last week, the market was essentially “on hold” as investors waited for the outcome of last weekend’s G20 meeting in Japan with President Trump and Chinese President Xi, but on Wednesday, Treasury Secretary Steven Mnuchin said on CNBC that “we are about 90% of the way [to a deal] and I think there’s a path to complete this,” which raised hope for a positive outcome and possible trade deal.

In exchange for returning to the negotiating table to pick up where China and U.S. trade negotiators left off, President Trump has agreed to postpone any additional tariffs, creating a face-saving atmosphere that makes both Trump and Xi both look good to their respective countries for negotiations over the summer.


In This Issue of Marketmail (Click Here to Read)

Our authors have mixed views of the G20 summit. Bryan Perry fears that their posturing may be more “lipstick on a pig” than real progress, while Ivan Martchev sees signs of progress in both North Korea and China trade. Both see a rising U.S. market in the second half. Gary Alexander chronicles a great first half but sees “termites” eating away at our future growth in the form of high and rising deficits. Jason Bodner dives deep into last week’s anomaly in falling indexes across the board – except for the Russell 2000. Then I’ll return with a look at the latest indicators and the new debate between recession or 2% growth?


Income Mail: Lots of Lipstick Applied to the G20 Deal

By Bryan Perry

Back to Business as Usual for the Stock Market


Growth Mail: First Half “Post-Mortem” Looks More Like a “Resurrection”

By Gary Alexander

Long-Term Threat from Trillion-Dollar Annual Deficits


Global Mail: High-Level Diplomacy – Now on Sale

By Ivan Martchev

China’s “Kung Fu Debt Pile”


Sector Spotlight: Reverse-Engineering Last Week’s Russell 2000 Increase

By Jason Bodner

What Made the Russell 2k Rise While Most Indexes Declined?


A Look Ahead: Weak Economic News Virtually Guarantees a Rate Cut in Late July

By Louis Navellier

The Current Debate: A Recession Ahead, or 2% GDP Growth?

The Fed is Split 50-50 on 1 or 2 Rate Cuts in 2019

Excerpt from Louis Navellier's Marketmail - 6/25/2019

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The big news last week was the Federal Open Market Committee (FOMC) statement on Wednesday, which removed the word “patient” and set the Fed up for potential 0.25% key interest rate cuts at its July and/or September FOMC meetings. Interestingly, the FOMC statement also acknowledged that there are “muted inflation pressures” and that “business fixed investment has been soft,” which will cause the Fed “to act as appropriate.” Seven of 17 FOMC members now forecast two 0.25% rate cuts, while eight FOMC members forecast just one 0.25% rate cut. Only St. Louis Fed President James Bullard wanted to cut rates immediately. As a result, I expect that the Fed will likely cut rates by 0.25% at its July meeting.

At his press conference on Wednesday, Fed Chairman Jerome Powell cited slowing global growth and lower interest rates as influences on slower U.S. economic growth. In fact, after his press conference, the 10-year Treasury bond fell below 2% in overseas trading for the first time since 2016. There is no doubt that persistent global capital flight to the U.S. is continuing to push Treasury yields lower. The market liked the Fed’s report and soared to new highs on Thursday, capping the best June (so far) since 1955


In This Issue of Marketmail (Click Here to Read)

Bryan Perry leads off with an “off the political grid” income opportunity in healthcare REITs with a special focus on healthcare facility management. Gary Alexander offers a time-tested user’s guide to the upcoming doomsday predictions, along with an antidote to the fear politicians intend to engender. Ivan Martchev has long predicted that the junk bond market indicates no recession and a strong market, which June has justified. Jason Bodner shows how careful stock selection is more vital at times like this, when the markets are trading at new highs. Then, I’ll return with a focus on the global news last week.


Income Mail: A High Yield Bright Spot in the Healthcare Sector

By Bryan Perry

The Opportunity in Healthcare Facility REITs

Growth Mail: A User’s Guide to Doomsday Election-Year Predictions

By Gary Alexander

The Vast Gulf Between Wars and “Rumors of War”

Global Mail: It’s Too Early to Call a Recession

By Ivan Martchev

Junk Bonds, Yet Again, Called the New Stock Market Highs

Sector Spotlight: Perception vs. Reality in Nature and the Markets

By Jason Bodner

Want an Oasis in the Desert? Try U.S. Stocks.

A Look Ahead: Europe Moves to Sink the Euro, Lifting Gold to $1,400

By Louis Navellier

Trump’s Near Miss on War with Iran

All Eyes (and Ears) Are on the Federal Reserve This Week

Excerpt from Louis Navellier's Marketmail - 6/18/2019

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The stock market was largely on “hold” last week in anticipation of the upcoming Federal Open Market Committee (FOMC) meeting and clarification of when the Fed might start cutting key interest rates. Right now, the Fed Funds futures are signaling about a 74% chance that the Fed will cut rates at its late-July meeting. I think that a cut at the September meeting is much more likely, since President Trump likes to “torment” the Fed by telling them that they made a mistake by tightening too quickly last fall. 

Since the Fed is supposed to be independent of the White House, the Fed says that it is “data driven” instead of doing what President Trump wants, so we’ll dig into some of the details that will influence the FOMC’s decision, as well as covering ways to profit from collapsing worldwide interest rates.


In This Issue of Marketmail (Click Here to Read)

Bryan Perry takes a ride in the profitable convertible market this week – that hybrid security market in which bonds can convert into common stock. Gary Alexander reviews the chances that this longest bull market and longest economic recovery can keep getting longer into 2020. Ivan Martchev examines the changing interest-rate environment in the last six months and how that intersects with the China trade deal standoff and new tensions in Iran. Jason Bodner uses a Father’s Day lesson to impart lessons of why we buy and hold the best stocks rather than over-trading, and then I’ll return with a review of last week’s various inflation indicators, the latest oil market realities, and the rest of the FOMC’s data checklist.

Income Mail: The Market’s Top-Down Case for Convertibles 

     By Bryan Perry

Buy Your Own Convertible (car) With Convertible Profits

Growth Mail: The Longest Day, the Longest Bull Market, and the Longest Recovery

     By Gary Alexander

Growth Trumps Value This Year and This Decade

Global Mail: There is a Bull Market in Bonds Out There

     By Ivan Martchev

Political Judo, Sun Tzu-Style

Sector Spotlight: A Father’s Day Message from 37,000 Feet

     By Jason Bodner

Growth Still Leads the Way

A Look Ahead: Inflation is Low (and Going Lower), Giving the Fed Room to Cut Rates

     By Louis Navellier

Other Economic Indicators That the FOMC Will Watch Most Closely This Week

Switch from Trade Fears to Rate-Cut Hopes Lifts Stocks

Excerpt from Louis Navellier's Marketmail - 6/11/2019

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The financial news media has switched its obsession from trade tariffs to a coming Fed rate cut, so the news media is finally reporting some more positive news for a change and the market “melted up” by almost 5% last week, recovering more than two-thirds of its losses suffered in the entire month of May.

Despite this sharp rise in the indexes last week, I’d still say stock picking will beat index funds, especially with the NASDAQ 100, where several flagship stocks are under investigation. Google is under Justice Department scrutiny in a potential antitrust probe, and The Wall Street Journal has also reported that the Federal Trade Commission is probing how Facebook’s business practices impact digital competition. 

The NASDAQ 100 is also being adversely impacted by Tesla’s woes, so NASDAQ’s former flagship index is under siege as many of its mega-cap stocks falter. Fortunately, I do not own Google, Facebook, or Tesla, so I have not been adversely impacted by these NASDAQ 100 flagships’ recent gyrations. 

Navellier & Associates does not own Tesla, Google or Facebook in managed accounts and our sub-advised mutual fund. Louis Navellier and his family does not own Tesla or Google or Facebook in personal accounts.


In This Issue of Marketmail (Click Here to Read)

What a difference one week makes! Bryan Perry examines how some of the “bad news” on the economic front perversely makes a rate cut more likely, which favors stocks. Gary Alexander wonders if China is in danger of the kind of long-term growth malaise Japan has suffered since 1990, if they don’t reform some of their economic shell games. Ivan Martchev also has suspicions about China’s growth rate, in light of falling oil and industrial metals prices. Jason Bodner celebrates the revival of stocks in general, and tech and semi-conductors specifically, as the market wakes up to the good news that has been there all along. In the end, I give three reasons why rates are falling worldwide and why we can expect rate cuts here, too.

Income Mail: The Bond Market is “Already There” and Waiting on the Fed to Catch Up 

           By Bryan Perry

Jerome Powell to Wall Street – “I’ve Got Your Back” 

Growth Mail: Will China’s Growth Machine Suddenly Implode – Like Japan’s Did?

           By Gary Alexander

China’s Growth Rates are Already Slowing Dramatically

Global Mail: Commodities are “from Venus,” Too

           By Ivan Martchev

You Can't Fake Oil Demand

Sector Spotlight: It Pays Dividends to Hunt for Good (Realistic) News

           By Jason Bodner

Equities were “Tweeted into a Tailspin” in May

A Look Ahead: What’s Behind the Global Race to Zero (or even Negative) Interest Rates?

           By Louis Navellier

Most Economic Indicators Point Toward a Slowdown, Justifying Fed Rate Cuts

Market Indexes are Down in May Over Several Global Crises

Excerpt from Louis Navellier's Marketmail - 5/29/2019

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The S&P 500 is down about 4% so far in May (through last Friday) mostly due to trade tensions with China, but those tensions were loosened somewhat on Friday after U.S. officials eased some of the trade restrictions on China’s 5G giant, Huawei, granting them a 90-day temporary extension to stock up on U.S. semiconductor orders. Since Googleprovides their Android system, Huawei’s 5G phones will be at a tremendous disadvantage without access to Android’s voice recognition. Clearly, Huawei will be forced to develop its own voice-activated system if the fight over 5G continues and lasts for over 90 days. 

This move gives Presidents Trump and Xi time to work out a face-saving solution to the trade war. As I have repeatedly said, both Trump and Xi want to say they “won,” so the new trade deal must benefit both China and the U.S. In the meantime, do not be surprised if China devalues the yuan to offset tariff costs. 

In my opinion, however, Thursday’s market decline stems more from European fears than China, as I’ll explain below. There’s also a crisis brewing in Iran, which Bryan Perry examines in more detail below.

Navellier & Associates does not own Google or Huawei in managed accounts and our sub-advised mutual fund. Louis Navellier and his family do not own Google or Huawei in personal accounts.


In This Issue of Marketmail (Click Here to Read)

Most of our authors focus on the positive side of the U.S./China trade talk impasse. The U.S. holds the winning hand and China seems to be shooting itself in the foot. Bryan Perry focuses on the slowing growth rate in China and the opportunity in U.S. defensive blue-chip stocks paying high dividend yields. Gary Alexander disputes the assumption that inflation will return if high tariffs remain in place over time, while Ivan Martchev argues that China seems to use these latest tariffs as cover for a long-term strategy of yuan devaluation. Jason Bodner covers the sectors that have sold-off in the latest “controlled-burn” correction, while I argue that these trade tensions will not hurt the U.S. economy or the market, long-term.

Bryan Perry doesn’t think President Trump will authorize any Mideast War, but he recognizes the risk. More importantly, he chronicles a record quarter of global and domestic dividends and buy-backs. Gary Alexander takes us back a century to a very troubled year, 1919, but a great (+30%) year for stocks. Ivan Martchev settles in for the long-game in the China-U.S. “trade storm,” while describing what seems to be a typical bit of deception in Huawei’s intellectual property (IP) practices. Jason Bodner shares a personal angle on how stocks tend to return to their long-term ascent after normal corrections. Then I’ll examine the unrest in Europe as the main culprit for last Thursday’s market malaise, and a closing note on Tesla.


Income Mail: Perception of Risk of an Iran War Feeds Market Tension

           By Bryan Perry

U.S. Leads Global Record Quarter of Rising Dividend Payouts


Growth Mail: A Memorial Day to Remember – 1919

           By Gary Alexander

We Don’t Know History, So We Don’t See How Good Things Are Today


Global Mail: The Calm before the Chinese Trade Storm

           By Ivan Martchev

An Anecdote on Chinese IP Practices


Sector Spotlight: Remember – Great Stocks Always Go Back Up

           By Jason Bodner

A Return to Red Ink Last Week


A Look Ahead: European Unrest Was a Big Cause of Last Thursday’s Sell-off

           By Louis Navellier

Analyst Sees Decline of Tesla to $10

First-Quarter Sales and Earnings Delivered Positive Surprises

Excerpt from Louis Navellier's Marketmail - 5/21/2019

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First-quarter announcement season is now more than 90% complete and I am happy to report that the S&P 500’s sales are up 5.9% and earnings are up 2.2%, which is a stunning surprise, since the analyst community had predicted negative earnings growth and 4% sales growth. Accelerating sales growth is a sign of overall GDP growth and a likely sign that we’ll see positive surprises in upcoming quarters, too.

Treasury rates dipped below 2.4% last week. The lower rates go, the more aggressive the corporate stock buybacks will likely be. On Thursday, The Wall Street Journal featured an excellent article entitled “Booming Buybacks Aren’t Likely to Wane Despite Market Volatility.” (Check it out, if you can.) In late May, after first quarter earnings announcement season ends, I expect to see many more stock buybacks.


In This Issue of Marketmail (Click Here to Read)

Most of our authors focus on the positive side of the U.S./China trade talk impasse. The U.S. holds the winning hand and China seems to be shooting itself in the foot. Bryan Perry focuses on the slowing growth rate in China and the opportunity in U.S. defensive blue-chip stocks paying high dividend yields. Gary Alexander disputes the assumption that inflation will return if high tariffs remain in place over time, while Ivan Martchev argues that China seems to use these latest tariffs as cover for a long-term strategy of yuan devaluation. Jason Bodner covers the sectors that have sold-off in the latest “controlled-burn” correction, while I argue that these trade tensions will not hurt the U.S. economy or the market, long-term.


Income Mail: No Plans to End the “Little Squabble” Any Time Soon 

           By Bryan Perry

Emperor Xi Has No Clothes 


Growth Mail: Will a Trade War Cause Soaring Inflation?

           By Gary Alexander

The CPI Overstates Inflation, Perhaps by 2% a Year


Global Mail: The Chinese Silver Bullet Is Yuan Devaluation

           By Ivan Martchev

Exchange Rate Manipulation is a Sun-Tzu-Style Maneuver


Sector Spotlight: Is This Correction a “Controlled Burn” or a Wildfire?

           By Jason Bodner

The Latest Selling is Focused on Specific Sub-Sectors


A Look Ahead: Trade Tensions Spook Wall Street – But the U.S. Holds the Winning Hand

           By Louis Navellier

The Economy Continues in “Goldilocks” Mode

Market Corrections Give Investors New Buying Opportunities

Excerpt from Louis Navellier's Marketmail - 5/14/2019

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After setting a new all-time high on April 30, the S&P 500 suffered some tough days but is still down only 4.5% from its peak. The stock market initially got up on the wrong side of bed last week when fears emerged that the Chinese trade negotiations may be breaking down. However, China sent a very large team to negotiate trade deal enforcement details, so the stock market recovered somewhat on Friday.

In the heat of last week’s market action, I recorded three podcasts. Here’s my latest podcast (yesterday).

Interestingly, the fear that the trade talks with China might be derailed, lowered Treasury yields, which in turn just makes stocks all the more attractive, especially as the post-earnings-season stock buyback surge heats up. As I have repeatedly said, I expect another big wave of stock buybacks in the upcoming weeks.


In This Issue of Marketmail (Click Here to Read)

Most of our analysts weigh in on the sudden eruption of renewed trade tariffs on Chinese goods. Bryan Perry focuses on the dangers to the Chinese housing bubble if this trade rift is not mended soon. Ivan Martchev agrees, since China can’t keep ignoring its epic debt bubble (300% of GDP) by one artificial intervention after another. Jason Bodner weighs in on how bugs in the China trade deal interrupted a fine earnings season (and Trump’s legal challenges). Meanwhile, Gary Alexander continues his series on how to interpret economic statistics from a variety of angles for better understanding, while I concentrate on two other major geopolitical hot spots – Iran and Venezuela – as well as the Chinese trade situation.

Income Mail: Trade War Threatens to Pop China’s Housing Bubble

     By Bryan Perry

Expect No Gain on Trade without Real Pain

Growth Mail: Media Myths Fuel Widespread Ignorance

     By Gary Alexander

Examples of Alternative Facts (or Alternative Explanations)

Global Mail: A Sino Trade Curveball

     By Ivan Martchev

A Hard Landing in China is a Matter of When, Not If 

Sector Spotlight: Trade Conflicts amid Earnings Season Disrupt Markets

     By Jason Bodner

Five Reasons for Buying Stocks on Dips

A Look Ahead: Geopolitics (in Iran and Venezuela) Dominate the News Again

     By Louis Navellier

Trade Talks Escalate to Cover Intellectual Property Protection

Earnings Surprises and Share Buy-backs Hold Promise for May

Excerpt from Louis Navellier's Marketmail - 5/7/2019

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It is starting to get bumpy, but I was encouraged by wave after wave of strong sales and earnings announcements last week. So far, the S&P 500’s annualized earnings are 5.6% above estimates.

We had an incredible April, which is a seasonally strong month that benefits from pension funding and the fact that some of the best earnings surprises tend to be released in April. However, in May, earnings surprises tend to be not quite as strong, so the overall market could get bumpy in the upcoming week. 

Last May was incredible, however, fueled by wave after wave of stock buy-backs. Specifically, companies suspend stock buy-backs in this “quiet period” (during earnings announcement season), but immediately after their first-quarter results are announced, they are free to commence more stock buy-backs. Since there were $227 billion in stock buy-backs in the first quarter and bond yields have since fallen, I expect stock buy-back activity to pick up in the second quarter, so May could be a great month, just like last year.

Speaking of buy-backs, Apple confirmed on Tuesday that it is boosting its stock buy-back program by $75 billion. Big multinational companies like Apple can issue debt at ultralow interest rates to buy back more shares. With rates so low, it appears that the second-quarter buy-back frenzy may be stronger than in 2018! 

Navellier & Associates owns AAPL in some managed accounts but not in our sub-advised mutual fund. Louis Navellier and his family own AAPL in personal accounts.


In This Issue of Marketmail (Click Here to Read)

Bryan Perry sees some “green shoots” of growth emerging in Europe and elsewhere around the globe, with a potential for high yields in selected European banks. Gary Alexander focuses on the misuse of economic growth statistics during the election cycle: Beware of bias, even by the “best and brightest.” Ivan Martchev sees the charts and the fundamentals pointing to a Dow heading for 30,000 (and the S&P to 3,250), perhaps this year. Jason Bodner follows the phenomenal growth story of semiconductors and software within the tech sector, while I cover the upbeat economic scorecard and the Fed’s latest meeting.

Income Mail: Economic Green Shoots in Europe Sparking Optimism

     By Bryan Perry

Fat Dividend Yields from European Bank Stocks Come with Elevated Risks

Growth Mail: Happy Birthday, Karl Marx…Now, Please Just Die!

     By Gary Alexander

How the Best and Brightest “Lie with Statistics”

Global Mail: The Dow Chart says It’s Going to 30,000

     By Ivan Martchev

Why the Fundamentals Support the Technical View

Sector Spotlight: Finding the Truth Amid the Noise

     By Jason Bodner

Semiconductors and Software Lead the Tech Charge

A Look Ahead: A Powerful Jobs Report Lifts the Market on Friday

     By Louis Navellier

The Fed (as Expected) Left Interest Rates Alone

Earnings May Eke Out a Small Gain in the First Quarter!

Excerpt from Louis Navellier's Marketmail - 4/30/2019

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The S&P and NASDAQ both reached all-time highs on Friday, but the big news last week is that there may be a switch in leadership in the social media space. Previously, investors seemed worried that Twitter (TWTR) was purging some users. However, last week Twitter posted better-than-expected first-quarter sales and earnings, due largely to the fact that advertisers and users appreciated the company’s attempt to curtail abuse from (1) disinformation, (2) fake news, and (3) bullying. The fact that Twitter is tackling social media abuse while boosting advertising revenue bodes well for Twitter surpassing Facebook as a social media leader. (It doesn’t hurt that President Trump is an active Twitter user.)

Meanwhile, negative 10-year yields in both Japan and Germany put downward pressure on U.S. Treasury bond yields, which promotes the “Goldilocks” environment that has fueled much of the stock market rally this year. So far, nearly half (46%) of the S&P 500’s announcements are in, and first-quarter sales are up at a 5.1% annual pace, and 77% of S&P companies have reported a positive surprise in earnings! The analyst community now expects the S&P 500’s first-quarter earnings to fall 0.6%, up from -3.9% just a month ago. It is now possible that the S&P 500 may eke out a small gain when all is said and done.


In This Issue of Marketmail (Click Here to Read)

Bryan Perry takes a closer look at the FAANG stocks, with a focus on Apple and its delayed entry into the 5G phone market. Gary Alexander compares April 30 to May 1 in history – both in the market sense (should we “Sell in May”?) and in the political arena. Ivan Martchev sees higher market highs by looking at comparative bond yields in the U.S., and by comparing the dollar to the euro and yen. Jason Bodner looks at “stealth buying” by institutional investors as another sign that this bull market has legs, while I examine America’s newfound power in energy independence and our global economic leadership.

Income Mail: Apple’s Earnings are at the Core of Further Market Gains

           By Bryan Perry

Apple iPhones Will be Late to the 5G Party

Growth Mail: April Was Great, But Don’t “Sell in May” (or Go Away)

           By Gary Alexander

Do We Prefer Our Constitution (April 30) or Socialism (May 1)?

Global Mail: The U.S. Yield Curve Has Still Not Inverted

           By Ivan Martchev

Implications for the Stock Market 

Sector Spotlight: The Market Image I Can’t Un-see

           By Jason Bodner

What are the Big Buyers (and Sellers) Doing Now?

A Look Ahead: In Oil Markets, The U.S. is the “New OPEC”

           By Louis Navellier

The U.S. Economic Dashboard is Still “Under the Speed Limit”

Hopes for Greater 5G Internet Speed Lift the Market Higher

Excerpt from Louis Navellier's Marketmail - 4/23/2019

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The biggest news last week was that the Apple (AAPL) and Qualcomm (QCOM) settlement on Tuesday should help both companies move on and proceed to build great 5G products. There is no doubt that 5G, which brings cable modem broadband speeds to wireless products, will trigger a massive upgrade to phones, tablets, computers, and other products that utilize wireless broadband technology. Unlike a wi-fi network, 5G is supposed to be much more readily available and bring blazing speeds to wireless products. 

The next big 5G fight will be between Huawei (China) and America’s QualcommIntel(INTC), Marvell Technology (MRVL), and Xilinx (XLNX), all of which are developing 5G chipsets. The Trump Administration has made it very clear that it wants the U.S. to win the 5G war for worldwide market share, but Huawei is a formidable competitor. Essentially, whoever controls 5G is expected to control the Internet several years from now, so this is shaping up to be an epic fight between China and the U.S.

Navellier & Associates owns AAPL, XLNX and INTC in managed accounts and XLNX and INTC our sub-advised mutual fund. Louis Navellier and his family own XLNX and INTC via the sub advised mutual Fund only.


In This Issue of Marketmail (Click Here to Read)

Bryan Perry reminds us what he has been saying all along – before the crowd noticed – that the rest of the world has not stopped growing. Gary Alexander lauds the new “Fed Listens” program and urges they take a giant step further – to accept the maverick new board members (Moore and Cain) nominated by Trump. Ivan Martchev explains the now-broken correlation between the U.S. dollar and oil, with a new look at China’s miraculous 26-year escape from recession. Jason Bodner examines the latest sector waves, with a particular look at Health Care, which I will expand on in my closing comments. In short, it’s all politics!

Income Mail: Another Week – Another Global Growth Surge 

           By Bryan Perry

Global Blue Chips Sport Fat Yields 

Growth Mail: The Case for Adding Steve Moore & Herman Cain to the Fed Board

           By Gary Alexander

Some Questions for the Fed (If They’re Listening)

Global Mail: Odd Correlation Between Oil and the Dollar

           By Ivan Martchev

More Divergences in the Energy Space 

Sector Spotlight: Catch a Wave and You’re Sitting on Top of the World

           By Jason Bodner

Health Care’s “Pause for the Cause” (and Gauze)

A Look Ahead: Good Health Care Stocks are Out of Favor – Over Political Fears

           By Louis Navellier

Business Confidence is Picking Up in the Sprin

Corporate Stock Buy-backs Rise 59% in First Quarter

Excerpt from Louis Navellier's Marketmail - 4/16/2019

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Even though the S&P 500 is off to its strongest start in almost a decade, Lipper reported that stock mutual funds had outflows of $39.1 billion in the first quarter. Some of these outflows could have been attributable to ETFs capturing more market share, but another major reason for the market’s strength seems to be the fact that companies in the S&P 500 repurchased $227 billion of their outstanding shares in the first quarter, according to FactSet. In the first quarter of 2018, S&P 500 companies repurchased $143 billion, so stock buy-backs soared 59% last quarter, due in part to extremely low interest rates.

In this ultra-low interest rate environment, the S&P 500’s dividend yield of approximately 1.85% remains super-attractive. The S&P 500 is up strongly this year despite low earnings projections, but my favorite economist, Ed Yardeni, pointed out last week that many institutional investors may be looking beyond the first quarter’s lackluster earnings forecasts, since first-quarter sales growth is expected to be strong and earnings growth for the second-half of this year and into next year is anticipated to be relatively strong. 

Frankly, the analyst community has been so aggressive in cutting their first-quarter earnings estimates that we could be on the verge of another round of positive operating earnings surprises in the coming weeks.


In This Issue of Marketmail (Click Here to Read)

Bryan Perry opens by saying the market sees a lot of good news beyond the current growth malaise story, including strong tech growth over the next five years. Gary Alexander offers part 2 of his story on how the press misuses statistics in their effort to scare (even misinform) the general public, to increase ratings. Ivan Martchev revisits the currency markets to weigh the latest dollar strength against the euro and some submerging “emerging” market currencies. Jason Bodner covers the growth sectors that have led this recovery, with a special focus on why the Semiconductors are leading the way. Then, I’ll conclude with a look at the latest misguided QE policies in Europe and some misleading inflation statistics just released.

Income Mail: Markets are Levitating Amid All the Static

     By Bryan Perry

High-Tech REITs Offer Strong Growth and Juicy Yields


Growth Mail: How Partisans Misuse Statistics to Try to Mislead Us

     By Gary Alexander

Five Examples of How to Spot the Misuse of Statistics


Global Mail: The Trade-Weighted U.S. Dollar is Headed to All-Time Highs

     By Ivan Martchev

The Trade Deal’s Impact on the Dollar and Other Currencies 


Sector Spotlight: Tune Out the Noise, Tune into the Key Statistics

     By Jason Bodner

Why Software and Semiconductors are Leading the Charge


A Look Ahead: Negative Rates in Europe and Japan are Causing Capital Flight

     By Louis Navellier

Inflation Rates Seem High but are Skewed by an Energy Price Surge

We're Off to a Strong Start in April

Excerpt from Louis Navellier's Marketmail - 4/9/2019

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April is seasonally the third strongest month of the year, thanks in part to new pension contributions in conjunction with the April 15 tax deadline. The S&P 500 began April with a 1.15% gain on Monday and a 2.06% gain for the first week of April. Our friends at Bespoke Investment Group pointed out that when the S&P 500 rises at least 1% on the first trading day in April, historically the S&P 500 has risen by an average 4.25% in April, 12.2% in the second quarter, and 21.32% for the next six months (the second and third quarters), respectively, during the nine previous such occurrences that have happened since 1945.

As of last Friday, the S&P 500 has risen seven straight days, three straight weeks, and 13 of the last 16 weeks, with net gains of over 23% since Christmas Eve. I keep expecting a correction in this seemingly overbought market, but I’m not complaining! We remain in a “Goldilocks” economy of low inflation, slow but positive growth, and lower long-term interest rates (2.50% on the 10-year Treasury bond rate last Friday vs. 3.24% five months ago), so well-selected stocks remain the best place for our money.


In This Issue of Marketmail (Click Here to Read)

Bryan Perry brings us some good news about how the news of a “Global Slowdown” is not only wrong but a product of glaring media bias. Gary Alexander brings us Part 1 of a two-part series on how the media lies to us with statistics – it pays to be skeptical of how the numbers can be twisted. Ivan Martchev updates his Deutsche Bank/U.S. Treasury rate correlation, with added comments on the Brexit crisis. Jason Bodner reports on the power of Growth vs. Value right now, while his MAP ratio shows the market is no longer overbought. Then I’ll close with a closer look at the Fed and the latest economic scorecard.

Income Mail: The “Global Slowdown” Narrative is Losing Ground 

           By Bryan Perry

Less Whine and More Cheese Needed from France

Growth Mail: Don’t Trust Statistics – Except Mine, of Course

           By Gary Alexander

Polls “Push” the Answers They Want

Global Mail: Rampant Eurozone Deflation Creates a Bizarre Deutsche Bank Correlation

           By Ivan Martchev

Deutsche Bank Delivers 22 Cents on the Dollar


Sector Spotlight: Growth Trumps Value So Far in 2019

           By Jason Bodner

MAP Ratio Exits “Overbought” Condition

A Look Ahead: President Trump Wants to “Pack the Fed” With Allies

           By Louis Navellier

Most Economic Statistics Show a Slight Slowdown in 2019

Despite Wall Street's "Scare of the Week," Good Stocks Keep Rising

Excerpt from Louis Navellier's Marketmail - 4/2/2019

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A slightly-inverted yield curve continues to spook investors, but our friends at Bespoke Investment Group documented the fact that during the previous six yield curve inversions, the S&P 500 rose by an average 1.75%, 6.16%, and 8.13% over the next month, three months, and year, respectively. Even more dramatic, after the last four times the yield curve first inverted, the S&P averaged gains of 19% after 12 months.

Our friends at Bespoke also like to follow the “smart money” on Wall Street. They noted last week that in January and February these “smart” folks liked to buy during the last hour of trading (3-4 pm EST). But in March, Bespoke says, there has not been much buying pressure in the last hour. This has raised some concerns that these smart buyers may have turned into patient net sellers, implying a coming correction.

Either way, I think the evidence is clear that today’s stock market is getting much more selective, due largely to the anticipation of a rapid deceleration in corporate earnings for the next two or three quarters, so this is the time in a recovery cycle when we try to be super-selective in our stock portfolio selections.


In This Issue of Marketmail (Click Here to Read)

In a typical overreaction, market pundits are now calling for “immediate” rate cuts from the Fed. Bryan Perry says this is not in the cards. Next up, Gary Alexander, Ivan Martchev, and Jason Bodner defuse the scare-mongering of those who fear an “inverted yield curve,” with Ivan focusing on the junk bond signal and rising EPS later this year. Jason also marks the possible end to an “overbought” market condition last week. Then, I’ll close with an analysis of bonds vs. stocks and creeping deflation trumping inflation.


Income Mail: Are Calls for “Immediate” Rate Cuts Warranted? 

           By Bryan Perry

“Advice from the Ice” Goes a Long Way


Growth Mail: The Best Opening Quarter in 21 Years

           By Gary Alexander

The Latest Premature Tizzy-Fit – An Inverted Yield Curve


Global Mail: The Dichotomy Between Junk Bonds and Treasuries Continues

           By Ivan Martchev

Aggregate EPS Still Growing in 2019


Sector Spotlight: “Help Me (if you can), I’m Feeling Down”

           By Jason Bodner

Growth Sectors Lead (with One Exception)


A Look Ahead: Chaos in the Bond Markets Makes Stocks Relatively Attractive

           By Louis Navellier

Deflationary Forces are Building, Adding to Stocks’ Luster

Watch Out for Quarter-Ending "Window Dressing" This Week

Excerpt from Louis Navellier's Marketmail - 3/26/2019

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We’re closing out a wonderful quarter this week, but, as last Friday’s action demonstrated, we must watch out for any quarter-ending “window dressing” this week, as well as 90-day smart Beta ETF rebalancing.

The catalyst for the Friday sell-off was the U.S. Treasury yield curve inverting on Friday, as the 10-year U.S. Treasury bond yield declined to 2.44%, while the 1-month Treasury yield remained relatively steady at 2.49% after U.S. factory orders fell to the slowest growth rate in two years. This 5-basis point Treasury yield “curve inversion” spooked the stock market, since yield curves tend to precede recessions. 

At the same time, over in Europe German 10-year bund yields fell below 0% after the weakest purchasing managers’ index in six years was released for the Eurozone, so bond rates have been falling worldwide.


In This Issue of Marketmail (Click Here to Read)

There is a lot of drama unfolding in global markets “under the radar” of U.S. political news, centered on the Mueller report. First, Brian Perry covers the embarrassing “flip flops” of central bankers in the U.S. and Europe, as they are forced belatedly to admit the impotence of their policy tools. Gary Alexander examines the strange case of stock prices moving in inverse patterns to earnings growth (or shrinkage). Ivan Martchev looks at the revival of negative-yielding global debt, after a brief hiatus, indicating global deflation returning. Jason Bodner looks deeper into the evidence of unusual institutional buying and selling, indicating signs of more growth ahead. Then I’ll wrap up with a look at this narrowing market. We all agree that in this stage of the bull market, a far more selective stock-screening process is required.

Income Mail: Central Bankers “Flip Flop” Once Again 

     By Bryan Perry

Money is Moving into Quality Dividend Stocks

Growth Mail: The Yin and Yang of Stock Prices vs. Earnings Growth

     By Gary Alexander

After Last Friday – Should You “Catch a Falling Knife”?

Global Mail: $10 Trillion in Negative-Yielding Global Debt…and Rising 

     By Ivan Martchev

Fed-On-Hold Beneficiaries

Sector Spotlight: Does Friday’s Decline Mark an End to the Bull Run?

     By Jason Bodner

What Unusual Institutional Buy/Sell Activity is Telling Us Now

A Look Ahead: The Stock Market Narrows into a “Funnel” of a Few Good Stocks

     By Louis Navellier

The Fed Signals “All Clear” on Rate Increases This Year

Can the Decade-Long Bull Market Continue?

This is a Market Update from Julex Capital Management:

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It’s been over a decade since the S&P 500 Index bottomed at an intraday level of 666 on March 6th, 2009. It took four years from this bottom for the index to breach the high-water closing mark of 1,515 that it set in December 2007, and U.S. equities have rallied an eye-popping 318% (albeit with a few corrections along the way) since. This begs the question: can this bull market continue?

Following convention, we define bear markets as periods where the nominal price level of an equity index loses 1/5th of its value from a recent market peak. Table 1 shows the length and percentage of advances/declines for each market regime since 1872. On average, the 12 bull markets have lasted about 8.5 years and had a cumulative price return of just under 300%. This suggests that from a historical perspective, the recovery since the downfall of Lehman Brothers and Bear Stearns is not an outlier in terms of either length or scale. For comparison's sake, the market saw 516% appreciation over a 13-year period from the worst part of the 1987 crash to the onset of Y2K and the tech bubble, a run that trumps this rebound considerably.

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In examining the peaks of previous bull markets, it’s evident that oftentimes a spike in valuations coincides with a turn in the market. But stocks are getting cheaper in the U.S., not more expensive. Investors were paying over $21 for every dollar of company earnings in the lead up to Black Monday, almost $28 in the lead up to the tech bubble, and just under $26 prior to the subprime mortgage crisis. At the end of 2018, the P/E ratio of S&P 500 companies sat at just above 19 (using aggregate month-end pricing and earning data). While this is slightly higher than average, high PE multiples can normally be supported by low interest rates, and the late cycle fiscal stimulus can potentially keep economic expansion and earnings growth intact.

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Many investors are worried that any potential credit problem may derail the stock market rally since it was the root cause of the last financial crisis. So far, borrowing and debt do not appear to present significant risks. Figure 2 shows how debt was skyrocketing in the lead-up to 2008, and how consumers are now carrying debt levels commensurate with historical averages. This points to the continued ability for consumers to spend, which in turn mutes fears for a credit crisis.

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Based on historical comparisons, this bull market may still have room to grow. Earnings are likely to slow going forward, but stock prices are supportive of current corporate income levels. FactSet estimates 7% earnings growth in 2019. While the consensus estimate from analysts is a slow-down in domestic GDP growth, FOMC board members estimate growth between 1.8 and 2.3% in the coming years, hardly suggestive of a recession. Taken in aggregate, these realities suggest that it is not an unreasonable expectation this bull market can continue for a few more years.





Disclosures

Julex Capital Management is a SEC-registered quantitative investment management firm specializing in tactical and factor-based investment strategies. The firm offers a variety of tactical unconstrained investment solutions aiming to provide downside risk management while maximizing the upside potentials using its unique Adaptive Investment Approach.   In addition, Julex offers active equity strategies to deliver security selection alpha uncorrelated with the traditional risk factors like size, value or momentum using its TrueAlpha(TM) multi-factor sequential screening approach.

The information in this presentation is for the purpose of information exchange. This is not a solicitation or offer to buy or sell any security. You must do your own due diligence and consult a professional investment advisor before making any investment decisions. The risk of loss in investments can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition.

The use of a proprietary technique, model or algorithm does not guarantee any specific or profitable results. Past performance is not indicative of future returns. The performance data presented are gross returns, unless otherwise noted.

 All information posted is believed to come from reliable sources. We do not warrant the accuracy or completeness of information made available and therefore will not be liable for any losses incurred. No representation or warranty is made to the reasonableness of the assumptions made or that all assumptions used to construct the performance provided have been stated or fully considered.

Louie Navellier Update - March 23, 2019

Hi Everybody,

The catalyst for the Friday selloff was that German 10-year bund yields fell below 0% on Friday after the weakest purchasing managers index in 6 years was released for the Eurozone.  Furthermore, the U.S. Treasury yield curve inverted on Friday as the 10-year Treasury bond yields declined to 2.44%, while 1-month Treasury securities yields remained relatively steady at 2.49%, after U.S. factor orders declined to the slowest pace in 2 years.  This 5 basis point Treasury yield curve inversion spooked the stock market, since yield curves tend to precede recessions, which I discussed in my Friday podcast … see link on column 1:
 
https://navellier.com
 
In our highly rated ETF portfolios (https://navellier.com/files/6215/5251/6700/MS_3yr_5yr_031319.pdf), we sold a major position in the iShares 7 -10 Year Treasury Bond (IEF) at an near-term high after the disappointing Brexit delay was announced that pushed the 10-year Treasury yields lower.  After locking in a nice profit in IEF, our ETF Portfolios then were reinvested in the strongest sector ETFs. 
 
Interestingly, the best performing sector ETFs are being influenced predominately by index buying pressure, primarily from the S&P 500 (SPY) and the NASDAQ 100 (QQQ), so there are only 3 to 4 sectors to invest in now depending on the ETF family (e.g., iShares and AlphaDEX).  As a result, 2019 is really now shaping up to be more of a stock picking year than a sector year, because the stock market is getting increasingly narrow.
 
So essentially, we are now entering a “funnel” heading into next week’s quarter-end window dressing and smart Beta ETF rebalancing.  I fully expect that I will be holding 30% less stocks in the upcoming months as the stock market’s breadth and power decays after the 2019 pension funding season draws to a close and the first quarter announcement season commences.  This funnel should cause more money to flow into the stocks that post strong sales and earnings, while the overall stock market is struggling with more difficult year over year comparisons.  My quantitative grade in both Dividend Grader and Stock Grader locks in on institutional buying pressure, so as certain stocks fall in rank, they will be replaced by stocks rising in rank that are benefitting from institutional buying pressure.  Here is a link to Dividend Grader and Stock Grader:
 
https://www.navelliergrader.com
 
Currently, the S&P 500 yields about 1.93% and most of those dividends are taxed at a maximum federal rate of 23.8%.  Investors can get out of the stock market, but ironically, they may earn less, since interest income is taxed at a maximum federal rate of 40.8%.  As a result, money continues to pour into index funds, despite the fact that earnings will remain lackluster for the next three quarters.  

Interestingly, so far this year, the stock market seems to be taking its cue more from an accommodative Fed, especially as other central banks, like the European Central Bank (ECB) prepares to offer more stimulus to member banks.  Speaking of the Fed, its Federal Open Market Committee (FOMC) announcement on Wednesday was incredibly dovish.  Specifically, the FOMC announcement said that due to slower economic growth that no key interest rate increase is anticipated this year.  The FOMC also remains very sensitive to global events, like slowing growth in China and Europe, so the Fed clearly does not want to change its interest rate policy at the present time.  I should add that the Fed is anticipating 2.1% GDP growth in 2019, so it can afford to be “patient” moving forward.
 
As far as unwinding its balance sheet is concerned, the FOMC implied that it would reduce the monthly Treasury securities its sells from $30 billion per month to $15 billion per month, beginning in May 2019.  Furthermore, the Fed will have completed its selling of mortgage back securities by September 2019.  Eventually, the Fed plans to shrink its balance sheet to approximately $3.5 trillion in 2019.  Here is a link to Ivan Martchev’s excellent MarketWatch article on the Fed’s balance sheet reduction:
 
https://www.marketwatch.com/story/whats-really-at-stake-as-the-federal-reserve-unwinds-its-balance-sheet-2019-03-20
 
Overall, the dovish FOMC statement caused Treasury bond yields to decline to the lowest level in the past 12 months, which is very bullish for higher stock prices, especially dividend growth stocks.  The Fed has also been blessed by a lack of inflation in recent months, but that may be starting to change.
 
Specifically, crude oil prices hit a four-month high last week after the Energy Information Administration (EIA) on Wednesday reported a 9.6 million barrel drop in domestic inventories in the latest week.  This drawdown is normal in the spring when demand naturally rises as the weather improves.  Additionally, the “crack spread” between sour and sweet crude oil has tightened up due to the fact that the U.S. will no longer pay for Venezuela’s sour crude oil as long as President Maduro remains in power, which is expected to squeeze the earnings of many refiners.  Overall, the U.S. is producing more crude oil than ever before and is now in control of worldwide crude oil prices, so I would be surprised if crude oil rises too much, since U.S. crude oil production continues to steadily rise.
 
In summary, we remain in a “Goldilocks” environment with an accommodative Fed that has no intention of raising key interest rates any time soon.  Brexit has caused chaos in Europe and now many countries have negative interest rates.  Furthermore, the European Central Bank (ECB) is planning to provide even more stimulus, since negative interest rates is apparently not sufficient stimulus. 
  
In my opinion, an investor’s best defense is a strong offense of fundamentally superior stocks that are characterized by rising dividends, stock buybacks as well as strong sales and earnings momentum.  These fundamentally superior stocks are becoming increasingly scarce and the stock market is now entering a “funnel” that will become much more narrow in the upcoming months. 
 
The stocks that I expect to emerge as market leaders and the biggest winners will be our fundamentally superior dividend growth and conservative growth stocks.  The relative strength that our stocks have exhibited bodes well for next week’s quarter-end window dressing as well as 90-day smart Beta ETF rebalancing.  Overall, we are entering a stock picker’s market and I expect continued strong performance for our fundamentally superior stocks in the upcoming months!

Louie 



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After a Rapid Recovery, Stock Selection is Very Important

Excerpt from Louis Navellier's Marketmail - 3/19/2019

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The S&P 500 has now risen 20% since its Christmas Eve low and the VIX (volatility index) is now at its lowest level since early October, when the stock market peaked, and ETF arbitrage spun out of control. 

The Wall Street Journal had an interesting article last week entitled, “Riskier Stocks Are Paying Off.” The article concluded that companies with weaker earnings are outperforming those with steadier profits. If you have any questions about your stocks, I urge you to use my Dividend Grader and Stock Grader databases, which are not experiencing the same issue, probably because my Quantitative grade measures include persistent institutional buying pressure, which sometimes transcends the traditional fundamentals. The bottom line is that the fundamentals are working, especially for stocks with high Quantitative grades.

Our friends at Bespoke Investment Group also pointed out that the smallest stocks in the S&P 500, based on market capitalization, continue to substantially outperform the overall S&P 500. This bottom 10% (50 stocks) is more domestic-oriented, less adversely impacted by a strong U.S. dollar that continues to negatively impact large multinational companies that are being hurt by a global economic slowdown.


In This Issue of Marketmail (Click Here to Read)

With the market rising again, our authors take a Spring Break with some valuable market tutorials. Bryan Perry looks at rising second-half 2019 earnings forecasts and a 5-point checklist on why the market seems so optimistic. Gary Alexander hearkens back to the roots of our crippling federal entitlement programs and the first war between the Fed and the President in the 1960s. Ivan Martchev addresses common myths about QE and the “excess reserves” vs. inflation and “printing money,” while Jason Bodner expands on his 30-year long-term indicator for overbought vs. oversold markets, using red, green, and yellow bands. Then, I’ll return to present-day events with an analysis of Brexit and the latest U.S. economic indicators.

Income Mail: Earnings Pendulum Expected to Swing Higher 

     By Bryan Perry

Making a Second-Half Global Rebound Checklist

Growth Mail: When Presidents and Fed Chairs REALLY Went to War

     By Gary Alexander

“How Are We Ever Going to SPEND All This Money?”

Global Mail: The Mystery of the Credit Multiplier

     By Ivan Martchev

How the Fed Increases Liquidity Without Fueling Inflation

Sector Spotlight: The S&P 500 in 2019 is Like a 20-to-1 Longshot that Paid Off

     By Jason Bodner

What the Red, Green, and Yellow Bands Tell Us

A Look Ahead: 10 Days Until Brexit Explodes into “No Deal” No Man’s Land

     By Louis Navellier

Fed Chairman Powell Has Learned to “Watch His Language”

Are We About To Enter an "Earnings Recession"?

Excerpt from Louis Navellier's Marketmail - 3/12/2019

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The bulk of fourth-quarter earnings have been announced and the average stock has posted a 5.7% sales increase and a 14.3% earnings increase – the fifth straight quarter of double-digit earnings growth.

Despite that great news, the S&P fell 2.16% last week as CNBC kept warning about a coming “earnings recession.” They are referring to the analyst community’s forecast that first-quarter 2019 S&P 500 earnings could decline 2.9%, due largely to more difficult year-over-year comparisons. Specifically, FactSet is expecting that only four of the 11 S&P sectors will post positive earnings growth in the first quarter, namely Healthcare (up 5.4%), Utilities (+3.9%), Industrials (+3.1%), and Real Estate (+1.9%). 

However, 2018 was a year of 24% earnings growth and a 6% decline in the S&P 500, so a year of flat earnings may not impact the market that much. Maybe the late 2018 correction reflected the anticipated drop in 2019 earnings growth, so the market may now look forward to 2020 earnings more than 2019.


In This Issue of Marketmail (Click Here to Read)

We finally had a down week in 2019, so the doomsday stories have dominated the media. First, there’s the very real threat of Brexit and a European recession, but Bryan Perry doesn’t think this will impact the U.S. market much. Then there’s the political nonsense of the Green New Deal and the latest “end of the world” rhetoric in America, which Gary Alexander debunks. Ivan Martchev revisits the China “miracle” of a levitating market with deteriorating fundamentals, which can’t go on forever. Jason Bodner has been warning of a correction in this “overbought” market and is glad it has arrived, but history tells him to look for higher prices ahead. Then I’ll close with a look at the U.S. vs. Europe. Bottom line, there are problems in Europe and China, but the U.S. remains the oasis – with a strong currency, stock market, and economy.


Income Mail: Recession Inertia is Building in Europe 

     By Bryan Perry

European Growth Forecast – “Look Out Below!”

Growth Mail: The Sky is Falling…Again

     By Gary Alexander

Is Today Really “The Most Divided” America Has Ever Been?

Global Mail: The Trade Deal is a Trigger to Sell China 

     By Ivan Martchev

The Economic Cycle Cannot Be Eliminated

Sector Spotlight: This “Overbought” Market Finally Corrected

     By Jason Bodner

The First Week of Lower Prices in Most Sectors in 2019 

A Look Ahead: Can We Sustain 3% GDP Growth in 2019?

     By Louis Navellier

In Contrast, Europe is Struggling