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Profiting from the “New Normal”

We’re busy putting the finishing touches on our Early Warning Summit 2021, and we can’t wait to talk with you more tomorrow to help you formulate your investing strategy for the coming year.

We didn’t plan the summit’s timing to coincide with the week the first COVID-19 vaccinations were given, but we’re thrilled that it worked out that way. The availability of multiple vaccines that appear to be highly effective is a big reason we’re both so bullish on 2021.

Plus, none of us can wait to return to normal.

Actually, we should say the “new normal.”

As the vaccine becomes more widely distributed and states and even countries around the world start to reopen fully, some things aren’t going to be the way they were before.

But that isn’t a bad thing. In fact, just the opposite. It can be good for us as people… and good for us as investors, too.

We already knew the future would be very different in the next five to 10 years, but history shows that a crisis often accelerates the inevitable. That’s what has happened with some of the hypergrowth investment trends and game-changing breakthroughs coming our way.

The vaccine itself is a great example. In less than a year, scientists went from not even knowing COVID-19 existed to the first doses administered this week. That’s absolutely mind blowing. The previous fastest vaccine was for mumps… and that took four years.

That shows how far healthcare technology has advanced. And there’s so much more to come as science incorporates the power of artificial intelligence (AI) and machine learning.

AI helped in the vaccine development, and it’s revolutionizing how drugs are discovered.

It currently takes approximately 10 years for a new drug to go from development stage to FDA approval. The cost has risen over the years and now clocks in at $2.6 billion. That’s a ton of money, especially considering the success rate from clinical trials to approval is only about 12%.

This is where AI comes into play. The data of past drug trials combined with patient data – a massive amount of information – can be harnessed to help predict outcomes, lower costs, and accelerate the time to approval. It should also increase the approval rate, as companies will be able to run powerful simulations to determine early whether to proceed to expensive trials.

A form of AI called machine learning can help researchers find desired molecules from huge data libraries, suggest chemical modifications, identify existing drug candidates that could be repurposed for new uses, and more.

It makes us think that global pandemics may one day be a thing of the past. Once a virus is identified, the time to a vaccine could be reduced to months, resulting in far fewer deaths and significantly less economic disruption.

Think, too, of how many more things we can now do remotely – from school to work to doctor’s visits and more.

The ability to “see” your doctor via your phone or computer has always been convenient, but it has never been so important. Now, telemedicine isn’t just talking to your doctor on a screen. Health professionals can also monitor their patients remotely, which is something else we’ll see more of in the new normal.

Or think about telecommuting. Sure, more offices will reopen, but you can bet more people will work at home, be it all the time or some of the time. Companies will require less physical office space, which will save them money.

This trend has also been in the works for some time, but it took a major leap forward this year. In fact, our Power Portfolio 2020 did very well with RingCentral (RNG), which has more than doubled here in 2020. We didn’t know the pandemic would force so many people and businesses to rely on Ring Central, Zoom Video Communications, and the like, but we invested in it because it was the leader in a fast-growing industry.

Our biggest winner was JD.com (JD), which gained 161% in the portfolio. It is one of China’s leading e-commerce companies – again, an already growing industry that exploded during the pandemic.

So, we can’t wait to get back to normal – an even better normal in many cases. COVID-19 didn’t stop many of the hypergrowth trends. It only accelerated them.

The future will be different after the COVID-19 pandemic, and understanding that is important to your investing future.

We’ll talk more about that tomorrow, and how you can position yourself to make money in a post-COVID world.

We look forward to seeing you then.

Regards,

Louis Navellier & Matt McCall, InvestorPlace

Note: The Editor (Louis Navellierhereby discloses that as of the date of this email, the Editor (Louis Navellier), directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

RingCentral (RNG), JD.com (JD), Zoom Video Communications (ZM)

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The Cusp of an Amazing Technological Revolution

There’s a big divide happening right now in America. We’re talking about one between the incredibly wealthy and the average Joe.

While more than 11 million Americans remain unemployed during the pandemic, America’s richest 614 billionaires grew their net worth by an eye-popping $931 billion. Jeff Bezos of Amazon (AMZN) alone increased his wealth by over $90 billion, while Tesla’s (TSLA) Elon Musk grew his personal pie by over $68 billion! Not bad for less than a year’s work.

All told since the beginning of the coronavirus pandemic, American billionaires have raked in a whopping $1 trillion, while millions of others struggle to pay their bills.

This massive chasm between rich and poor has also been accompanied by a shift in the stocks that have outperformed this year. With more folks staying at home and biotech companies racing to find a coronavirus vaccine, biotech and tech companies have surged.

Interestingly, at the beginning of the year, Matt predicted the biotech sector would soar in 2020, and that’s exactly what happened.

Case in point: From the March lows, the SPDR S&P 500 Biotech ETF (XBI) is up a stunning 114%, while the S&P 500 is up 63%.

Now, look at how the S&P 500 compares to Novavax, Inc. (NVAX), which is currently creating a coronavirus vaccine. It is also being funded by both the federal government through Operation Warp Speed and the Bill & Melinda Gates Foundation.

It’s up more than 1,000% in about nine months!

On the tech side, pandemic plays, like Zoom Video Communications (ZM), also outperformed the market. The video chat app has surged 490% year-to-date. In comparison, the S&P 500 is up about 13% year-to-date.

But the reality is this technochasm – the gap between the wealthy and poor mirroring a boom in tech stocks – has been happening for some time. And on one side of that divide are certain tech companies that are growing faster than ever before. On the other side are the companies going bankrupt in the blink of an eye.

In fact, we saw this back in the 1990s, during a time of low inflation and incredible innovation. Back then, the rollouts of the cellular phone networks, powerful personal computers, software, and the internet converged to unleash a tsunami of productivity. This resulted in higher profit margins for virtually every business across America.

In a relatively short timeframe, our ability to communicate, transact, process data, analyze data, and manage supply chains was revolutionized.

We started living in a whole new world. And it carried the broad market 417% over that decade. It also paved the way for truly innovative companies harnessing these new technologies to hand their shareholders incredible returns.

We’re talking about companies like Cisco (CSCO), which rocketed up 113,000%, or Amazon, which is up 72,000%.

And now, we’re again at the cusp of an amazing technological revolution that will carry the stock market to incredible new highs.

The convergence of new technologies like artificial intelligence (AI), 5G, precision medicine, the Internet of Things (IoT), driverless cars, and the blockchain are recreating the very framework of modern society.

And the impact these technologies will have on the global economy will dwarf the internet. 

When you add up the economic impact that these technologies will have on the world, it’s staggering…

At least $46 trillion over the next 10 years!

We look for 5G to add $12 trillion to the economy, the Internet of Things to add $19 trillion to the economy, and artificial intelligence and advanced robots to add $15 trillion to the economy.

The truth of the matter is the potential is significantly greater than what we saw in the 1990s. We will discuss this big shift, and where we see the potential for big profits, in our Early Warning Summit 2021, scheduled for this Thursday, December 17, at 7 p.m. ET. We’ll also share the companies we expect to be the big winners, so stay tuned!

Regards,

Louis Navellier & Matt McCall, InvestorPlace

Note: The Editor (Louis Navellier) hereby discloses that as of the date of this email, the Editor (Louis Navellier), directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

AMZN, NVAX, ZM

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What a Weak Dollar Means for Stocks

Yesterday, we wrote to you about the shift that’s taking place toward renewable energy. President-elect Biden has plans to spend $2 trillion in the sector in coming years, and we will see lots of opportunities to invest in that sector.

We will provide more thoughts about that opportunity on Thursday, December 17, at 7 p.m. ET, during the Early Warning Summit 2021.

Today we’d like to turn your attention to what’s on the horizon for the U.S. dollar, and the implications for the stock market.

In February and March, as a large swath of the global economy suddenly ground to a halt due to the pandemic, the U.S. dollar hit a three-year high. At the time, people around the world sought safety in the greenback.

Since then, however, the U.S. dollar has drifted down. On December 4, after falling 5.73% year-to-date, the dollar hit a low not seen since April 2018. It’s currently hovering slightly above that level.

A lot has happened since spring 2020 when the dollar began to fall. In response to the impact of the pandemic, the U.S. government borrowed trillions of dollars and sent stimulus checks to millions of Americans and businesses. That has led to inflation worries.

Government borrowing and spending has been chipping away at the value of the dollar for decades, and taken a hit on savings accounts. According to the Bureau of Labor Statistics’ consumer price index, you’d need $151.21 dollars today to equal the value $100 had just 20 years ago.

The bottom line is that if the current weak dollar environment persists, there’s no reason to worry, but it does have some specific implications and advantages to watch for.

A cheap dollar is a windfall for multinationals, as their products are cheaper overseas. Once the international currencies are converted back to dollars, it pads the multinationals’ sales.

You can see in the chart below how multinational stocks outperformed domestics when the dollar was down over four prior decades in this chart from Fortune

Lately, multinational tech companies have been shining while the dollar has dropped. As you can see in the chart below, shares in S&P 500 Information Technology sector stocks have soared 77% since the bottom on March 23.

Superior stocks with strong sales and earnings, like those we hand-picked for the Power Portfolio 2020, did even better.

Take Chinese e-commerce giant JD.com, Inc. (JD). Its shares climbed 107% over the same timeframe.

The stock closed out an outstanding 161% gain in the Power Portfolio 2020 and was the portfolio’s biggest winner.

Recently, the Dow climbed above the 30,000 level for the first time in its history. The S&P 500 hit its all-time high on December 4, while the NASDAQ soared to a record high on December 8.

But that’s just a glimpse of what’s to come. We believe we are now on the cusp of an amazing technological revolution that will carry the stock market to incredible new highs.

One year ago, when we introduced Power Portfolio 2020, our goal was to offer our members a robust, diversified stock portfolio that would do well in all sorts of economic conditions.

We are proud to say we accomplished our goal. We closed the portfolio with massive gains of 35%, which blew away the Dow’s 6% return over the same timeframe.

We are now looking at multiple factors that could bring big upside in 2021.

The reality is the convergence of new technologies like artificial intelligence (AI), 5G, precision medicine, the Internet of Things (IoT), driverless cars, and the blockchain are re-creating the very framework of modern society.

Which is why we believe 2021 will be one of the greatest years in history to be an investor…

The early readings from my quant-based systems are off the charts.

And there are some obvious and not-so-obvious reasons for this.

We will let you know what’s taking place, and why we’re so bullish for 2021, in the upcoming Early Warning Summit 2021 scheduled for December 17, at 7 p.m. ET.

Regards,

Louis Navellier & Matt McCall, InvestorPlace

Note: The Editor (Louis Navellier) hereby discloses that as of the date of this email, the Editor (Louis Navellier), directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

JD.com (JD)

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Profiting from the “Biden Boom”

We’re all ready for a new year.

And after sitting down together earlier this week and sharing our viewpoints on what 2021 has in store for us, we couldn’t be more excited.

The future holds a lot – plenty of opportunities and dangers alike. But by putting together a diversified portfolio of high-quality stocks, you can set yourself up to make good money no matter what the market… or the economy… or the government… or COVID-19 throws our way.

That’s exactly what we did last year, and now we’re very busy planning for next week’s Early Warning Summit 2021. We can’t wait to share everything with you on Thursday, December 17 at 7 p.m. ET.

And in the meantime, we’re getting you started with some of the most important things to be aware of as you plan for 2021. Yesterday, we talked about the tidal wave of cash that’s about to hit the markets[DG1] .

Today, we want to focus on one area that was also on our radar last year. Growth in this space is just beginning, and we think 2021 will be its year.

We’re talking about infrastructure and clean energy

During the 1900s, the world relied almost exclusively on “dirty” fuel to produce electricity.

Coal, for example, was responsible for more than 50% of U.S. power generation. It was also responsible for most of the electric power in China and India.

Burning coal and other fossil fuels produced huge amounts of energy. They were by far the most attractive fuel sources in the world on a cost basis.

This low-cost energy powered amazing economic growth. It powered factories that built cars, refrigerators, computers, trucks, and televisions. It lit up hundreds of millions of homes around the world.

However, that growth came at a price.

Burning all that fossil fuel produced a lot of pollution. Many of the world’s top scientists believe man-made climate change is causing temperatures to climb, sea levels to rise, and ice caps to melt.

This is why climate change is often cited as the number one worry for people around the world. Many see it as the biggest crisis of our time.

And many people see renewable energy – which comes from fuel sources like solar and wind energy – as the solution.

So it makes sense that Joe Biden has big plans for clean energy during his presidency. We wouldn’t be surprised if 2021 is the year that a massive infrastructure/clean energy bill is passed.

The odds of such a bill should be a full 100%. U.S. infrastructure needs a major upgrade, but unfortunately our politicians sometimes forget about the needs of the country. But an infrastructure bill is coming eventually, and when it does, we expect the focus will be on clean energy.

According to a plan that Biden laid out during his campaign, a total of $5.4 trillion could be spent if he gets his way. That number is astronomical, but it could happen. Add that to another stimulus bill, which we think is likely, and you have a lot of money coming into the economy. This is clearly bullish for stocks.

Biden’s clean energy plan could account for more than $2 trillion of the $5.4 trillion total. The focus will be on solar, wind, electric vehicle (EV) charging stations, and the like. Expect to see a combination of tax credits as well as money earmarked for more research and development in the industry.

At the top of the list will be techniques such as solar, battery storage, improving the nation’s power grid, and a major switch to EVs to lower emissions.

Clean energy has been a high-growth trend for years… and it is now about to move into hypergrowth territory. We expect Biden will run into some pushback from a Republican Senate in trying to approve such a massive bill, but in the end a deal will likely get done.

And when you’re talking about that kind of money, you can be sure there will be direct stock market implications.

Solar and wind power are quickly becoming the lowest cost source of energy in several countries around the world – and soon they will be everywhere. The days of having to choose between clean energy and the cheapest energy source will soon be over. The logical and economical choices will be solar and wind. Once they are cheaper, it’s game over. We all know that at the end of the day, it is about the money.

With clean energy making up only about 9% of the $6 trillion global energy industry, there are trillions of dollars at stake in the coming years. And to prepare for all this extra money sloshing around, we want exposure to the sectors that should benefit the most.

This is the way we as investors need to think, and you can bet these industries are on our radar.

The infrastructure and clean energy trend holds a lot of promise in 2021, but it’s not the only one. Our computer models and research have us very excited about what’s to come, and we’ve not only identified the biggest trends that will have the largest and most immediate impact… we’ve also identified how to take advantage.

We’ll talk plenty more about that in the coming days. Tomorrow, we’ll share our thoughts on how investors should look at all the government money coming into the markets and its impact on currency. We know that’s on a lot of investors’ minds right now.

In the meantime, we continue to look forward to talking with you at our Early Warning Summit 2021 next week.

Regards,

Matt McCall, InvestorPlace

Louis Navellier

Louis Navellier, InvestorPlace

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A Tidal Wave of Cash is About to Hit the Markets

If there’s one thing Wall Street hates, it’s uncertainty. And between the coronavirus pandemic and the presidential election, there was plenty of uncertainty to go around. So, it’s no surprise that many investors ran to the sidelines.

With that in mind, it should also come as no surprise that there’s never been so much cash sitting on the sidelines – nearly $5 trillion, as a matter of fact. This is significantly above the record $3.8 trillion in cash set back in January 2009 during the financial crisis!  

Consumers also kept their wallets closed. Typically, Americans keep 7% to 8% of their income in savings. This year, though, that rate surged to over 33%.   According to the FDIC, more than $2 trillion has been stockpiled into individual bank accounts. 

That money came from selling stocks and the massive government stimulus cash that was pumped into the economy. As you may recall, the U.S. government passed a $2.2 trillion stimulus package in March. Part of that package included a $1,200 check for American taxpayers with an adjusted gross income of $75,000 or under on their 2019 tax returns.

Interestingly, folks that earned between $35,000 and $75,000 increased their investing activity in the stock market by a whopping 90%.

In addition, to keep the economy going, the Federal Reserve just about threw in the kitchen sink. Back in March, the Fed announced that it would not cap its quantitative easing program at $700 billion. The Fed also committed to purchase as many Treasuries and mortgage-backed securities “in the amounts needed” to help stabilize the U.S. economy. It would also purchase agency commercial mortgage-backed securities.

Thanks to this nearly unlimited quantitative easing, the Dow and S&P 500 will continue to yield more than the 10-year Treasury, which is hanging a little below 1%. In comparison, the Dow and S&P 500 currently yield about 2.5% and 1.9%, respectively.

And now, with a lot of the uncertainty shaken out of the market, cash is pouring in from the sidelines. And that has driven the stock market higher. The three major indices have hit record highs, with the Dow finally breaking its 30,000 milestone.

The reality is stocks tend to move higher when the money supply is high. It’s never been this high before, so there is significant upside ahead in 2021 – and significant potential for big profits.

It’s for this reason that I am sitting down with my InvestorPlace colleague Matt McCall for our Early Warning Summit on December 17, at 7 p.m. ET.

Exactly one year ago, we introduced Power Portfolio 2020 with a single goal in mind – to provide our members with a robust, diversified stock portfolio that would do well in many different economic conditions.

I am proud to say we did just that. In fact, as I mentioned yesterday, we closed the portfolio with massive gains of 35%, which blew away the Dow’s 6% return in the same timeframe.

Matt McCall and I see several factors that could lead to even bigger gains in 2021, like the cash on the sidelines that I discussed today. We’ll provide our expectations in full detail in the upcoming Early Warning Summit.

Sincerely,

Louis Navellier

Louis Navellier
InvestorPlace

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What 2020 Can Teach Us About Investing in 2021

If there’s one thing we can all agree on right now, it’s that we’re ready for 2021.

This year has been one of surprises – most of them unpleasant.

It seems forever ago now, but 2020 actually got off to a great start. The Dow rose to an all-time high in the first seven weeks, employment was strong, and the U.S. economy was rolling along.

Then, COVID-19 hit the world like a meteor from outer space. The resulting lockdowns created one of the biggest, fastest declines in market history… which was followed by huge government stimulus, a belief that COVID-19 infections had peaked, and a massive stock rally. 

To add to the confusion, we had a summer of social unrest and protests across the country.

And we just experienced one of the most contentious elections in American history.

It’s all enough to make your head spin.

But one thing worked out just as well as we hoped.

Exactly one year ago, we introduced Power Portfolio 2020 with a single goal in mind – to provide our members with a robust, diversified stock portfolio that would crush the market.

We recently closed the portfolio with massive gains of 35%, which blew away the Dow’s 6% return in the same timeframe.

Yes, the portfolio got hit with everything else when the pandemic burst on the scene, but our goal was to invest in high-quality stocks and hold them for the year. Those stocks rebounded an average of 175% from their lows, and to say our portfolio reached our goal of beating the market by 200% is a huge understatement.

And now, we’re looking ahead to 2021.

What do our research and computer models tell us about the opportunities and dangers ahead?

Can we beat or even exceed last year’s world-class performance?

What impact will a new administration have on the economy and stocks?

What will happen when we finally get COVID-19 behind us?

These are all important questions, and we’re going to give you our answers and expectations in our Early Warning Summit 2021.

Your spot is reserved, and we can’t wait to talk to you next Thursday, December 17 at 7 p.m. ET.

What we’ll share that night will affect much more than just stocks. It involves the entire economy, your job, your financial well-being, and so much more.

One of the real highlights for us this past year was the opportunity to combine our two very different systems for such powerful profits. There’s more than one way to uncover big market winners!

Matt’s more of a “top down” or “big trend” investor, though he dives way down into company specifics. Louis takes more of a “bottom up” approach, focusing on the detailed numbers that signal whether a company’s stock is about to take off, though he certainly pays attention to the big picture as well.

Both strategies work. But last year we learned that when we combined our strategies – when we both agree on a stock – the results are even more incredible.

We enjoyed working together, and our members made a lot of money. So we’ve been researching, meeting, and hammering out our expectations for next year. That’s what we’ll talk about at our Early Warning Summit 2021.

We can’t cover everything here, but let’s just say our computer models and research have us very excited about what’s to come. We’ve identified the biggest trends that will have the largest and most immediate impact on the coming year… and how to take advantage.

We’ll talk about some of these in the coming days leading up to the event, so keep an eye on your email.

Thanks for registering for the event. We can’t wait to see you next Thursday.

Louis Navellier

Louis Navellier

Matt McCall

Matt McCall