Do Louis Navellier's Breakthrough Stocks Live Up to the Hype? By Michael Salvatore, Editor, TradeSmith Daily When it comes to following investment research, there are fewer qualities you can depend on than decades in the "trenches" of the financial markets.
The folks who have been investing for 10, 20, even 40 years have such a leg up on the droves who got started in the last few years. They've seen markets boom, bust, and languish more than a few times... and they've learned to spot the characteristics of both long-term market cycles and individual stock opportunities.
Nowhere is this more evident than with investors like Louis Navellier. Louis has been trading for 47 years at this point, and his finger's on the pulse of the financial world in a way I've rarely seen. Thousands gather for the special online events where he shares his big ideas, as you may have seen over at our corporate partner InvestorPlace. And when he makes a big call, I'm inclined to take it very seriously.
Lately, Louis has been pounding the table on what he sees as an all-out financial mania... on the scale of and maybe even surpassing the dot-com bubble... quickly developing before our eyes.
Like the dot-com bubble, Louis predicts that a generation of new tech companies will mint countless new millionaires who position themselves correctly.
But part of his prediction is also a warning. Because he believes that the result of this mania will be a massive change to America as we know it today.
As you might guess, both of these things have a lot to do with the advent of AI. While a handful of select companies are positioned for life-changing returns, millions of unknowing people are unfortunately in the position of losing their job to a machine that's rapidly growing in intelligence.
The gap between the haves and the have-nots will grow...
For folks in Louis' generation, this may be the final financial mania of your lifetime. That means it's critical to get this right: for yourself, for your loved ones, and for your legacy.
Even if you're a bit younger, it's time to invest like Louis did in the original dot-com days – the moment that cemented his reputation as "King of the Quants," as Forbes put it at the time.
Louis' time-tested system is how he was able to make the right moves in the '90s to '00s... including the 2008 financial crisis, not to mention the 2020 pandemic and the Magnificent 7 surge of last year.
That's why right now, Louis is using his system to carefully select what he sees as the must-own stocks for the huge shift that's coming. Louis will have more details next week in a limited-time research presentation. There he's also going to share two stock tickers that he believes will be great trades in this environment, completely free. So I'd urge you to check that out. I know I will be.
In the meantime, here's the other reason I'm writing you today... Something I've Only See This Newsletter Do Louis's specialty is growth stocks – the companies that are small today but on the path to being titans of the market down the road.
He abides by a strict stock selection system he created himself. Louis has been using it for most of his career and it's highlighted opportunities like a 1,534% gain in Moderna, an 8,151% gain in Amazon, 2,179% in Ulta Beauty, and over 600 more individual picks that rose by 100% or more, including 18 that rose over 10,000%.
These high-octane, hypergrowth companies are Louis' bread and butter. And he's dedicated his career to uncovering these companies before they land on the front page of The Wall Street Journal.
He publishes some of his best research in Breakthrough Stocks, a premium research newsletter that spots breakthrough stock opportunities in a variety of risk profiles. And you should know that the research event I talked about earlier, where Louis will share his thesis for the coming mania and give away two free picks, doubles as an opportunity to join him in Breakthrough Stocks to access his premium research.
That got me thinking... what better way to showcase Louis' abilities – and just as important, make sure it's the kind of investing you want to do – than to review a recent issue?
We've done these Research Reviews a few times before here in TradeSmith Daily. I don't see any other newsletter writers doing it, and I think it's a valuable thing to help you decide whether you like the style of investing a writer offers.
So, without further ado... let's poke through the June issue of Breakthrough Stocks, published back on June 7, and show you exactly what Louis is all about. Research Review of Breakthrough Stocks Before Louis talks about his recommendations in each issue, he first spends some time laying the groundwork for the market environment we're in. To lead, Louis points out that the recent rally is not just hype – it's backed by a hugely positive earnings season: Much of the market's recovery in May can certainly be attributed to the phenomenal first-quarter earnings announcement season. FactSet reports that 78% of S&P 500 companies exceeded analysts' earnings estimates, and the S&P 500 achieved 5.9% average earnings growth in the first quarter. That compares to expectations for only 3.4% at the start of the earnings season.
So, it's not too surprising that during May, the top 10% of stocks in the S&P 500 were the stocks with the strongest analyst earnings revisions according to the folks at Bespoke. These stocks rose 4.1%.
So when you subscribe to Breakthrough Stocks, you know you're getting analysis not just on individual names, but the broader macro too. That's important – great companies can and do get thrown out with the bathwater when the market turns down. Louis is careful to invest when the time is right for it.
Moving along, Louis notes the recovery in quality small-cap growth stocks – the likes of which are his specialty: Personally, what I found even more impressive was the May "melt up" in small-cap stocks.
As we discussed in the May 31 Weekly Update, our Breakthrough Stocks had an exceptional May, with our Buy List jumping an average of 6.6% higher. Also notable is the fact that 11 of our Buy List stocks posted double-digit gains between 10% and 41%.
The reality is that there was a massive shift back to fundamentally superior growth stocks in May.
Now, at the end of every quarterly earnings announcement season, I retest Portfolio Grader to see how it is performing. The main conclusion from the latest backtest: The top 5% of our more than 6,000-stock universe is the place to be invested. Also important, the top 60% of stocks with the highest fundamental scores (A, B, and C Fundamental grades) have performed much better than the overall market.
So, Wall Street is focused on companies with superior fundamentals more than ever. This renewed focus bodes particularly well for our Breakthrough Stocks.
Consider this: Nearly half of the S&P 500's sales come from outside of the U.S., so a strong U.S. dollar hinders many of the multinational companies that dominate the index. However, small- and mid-cap stocks are more domestic in nature. So, they are not adversely impacted by a stronger U.S. dollar like their large-cap peers. As a result, smaller-cap stocks continue to have accelerating earnings momentum.
Our current Breakthrough Stocks Buy List is characterized by 68.7% average forecasted annual earnings growth. I should also add that our Breakthrough Stocks beat the top decile of S&P 500 stocks with the highest analyst earnings revisions by more than two-to-one in May.
Louis notes his Weekly Update in the above section, which is a regular column in Breakthrough Stocks that covers the latest economic numbers like inflation, any news on current recommendations, and upcoming earnings reports.
That's in addition to podcasts anytime the market swings 5% (in either direction), where Louis gives his unfiltered take on the latest economic news and trends driving the action, especially as they affect his model portfolio. And each month he deep-dives on his recommended stocks and any pressing updates.
Periodically, Louis also releases special reports on a variety of topics, almost always with actionable guidance on how to invest in fast-developing trends like artificial intelligence. Here's an excerpt from his most recent special report, all about the AI revolution and why the trillions in cash currently sidelined from the market are about to rush back in: The reality is that AI is unlike anything we've ever seen. As a result, it's being adopted at an unprecedented scale.
Major tech revolutions don't truly take off until they're widely accessible. We saw this happen with the internet, which was only the tech enthusiasts and the military used – until 1995 when the Netscape browser came along, making it a whole lot easier for anyone to surf the web.
By 1999, the internet had become a household technology. But by that point, if you were looking to make a killing off it, you might've found you were a bit late to the party.
Even though big corporations and government agencies have long been able to rely on AI in some form, it is just now becoming more accessible to regular people. Maybe your kids or grandkids use it to help with their homework. Maybe you use it at work or at home to build spreadsheets.
And this newfound accessibility is setting AI up for an explosive move.
As a result, AI will drive a ton of wealth like the internet did in the '90s... and smartphones just did throughout the 2010s.
The best way to position yourself for this move is to get your money out of cash and put it into a select group of small-cap stocks before the Federal Reserve cuts key interest rates this year.
The final thing I'll note about Breakthrough Stocks is that it's not exclusively a high-risk investment advisory. Louis separates his portfolios into three different risk profiles: Conservative, Moderately Aggressive, and a class he calls "Aggressive, Powerful, Volatile." The average returns for open positions in each, respectively, are 39.51%, 28.82%, and 471.77%.
All in all, Breakthrough Stocks is an excellent source of information not just on new growth stock ideas, but the seasoned insights of a 47-year market veteran. But there's a lot more to the story. Like I said before, you'll have the chance to get more information on Louis' AI mania thesis in a limited-run webinar this coming Tuesday, June 25. Sign up for it right here, and ensure your chance to get two of his top stock picks for this increasingly likely scenario, 100% free. To your health and wealth, 
Michael Salvatore
Editor, TradeSmith | 
没有评论:
发表评论