Today’s market is all over the place … a major prediction from Louis Navellier today at 4 PM ET … how to navigate the opportunities and threats to your portfolio today
Yesterday, the CEO of JPMorgan, Jamie Dimon, published his closely watched letter to shareholders.
From the letter:
The confluence of the dramatic stimulus-fueled recovery from the COVID-19 pandemic, the likely need for rapidly raising rates and the required reversal of QE, as well as the war in Ukraine and sanctions on Russia may be unprecedented.
Here in 2022, these risks and circumstances have translated into a market that could be described as schizophrenic.
Or as legendary investor Louis Navellier says, this market is “every stock for itself.”
***To get a quick sense for this, let’s look at a handful of the 11 sectors in the S&P 500
As I write, the S&P 500 Index is down 4.6% on the year.
Now, that return does an accurate job of representing the performance of a sector like real estate. Real estate related stocks in the S&P are down 4.9% in 2022.
But if you’ve been in the communication services sector, watch out – your average return is 145% worse than the broad S&P index. This sector is down 11.3% on the year.
Meanwhile, as you’re likely aware, energy has been dominating. This sector is up 38.8% over the same period.
In short, today’s market is all over the place. The blue-sky conditions of the second half of 2020, when just about everything was rising, are long gone.
In its place is a fragmented market, which means well-researched sector and stock selection is the name of the game today.
So, how do you navigate this complexity and position your portfolio wisely?
Louis will be diving into this answer and far more this afternoon at 4 PM ET at an important live event called Prediction 2022.
If you know Louis at all, you probably already suspect what his answer focuses on…
Fundamental strength.
***Using Louis’ “Quantum Score” to help identify stocks that are breaking out – while avoiding those that are toxic
For newer Digest readers, Louis is a legendary “quant” investor. This simply means he relies on numbers, not hunches, to drive his investment decisions. He uses computers and algorithms to identify a small group of stocks that are rooted in quantifiable earnings strength.
So, what does this look like in real time?
A moment ago, we talked about how the energy sector has been on fire so far this year.
As you might guess, this means that energy stocks have been lighting up Louis’ proprietary stock screens.
Here he is, explaining what this looks like:
I track many energy stocks with my proprietary stock-scoring system, and given the strength in energy stocks, many are showing up on my screens – regardless of their size.
After Louis provides more detail on each company’s fundamental strength from their latest earnings reports, he jumps to the takeaway:
As you can see in the Report Card below, both companies earn an A-rating from my stock-grading system.
While I’ll let Louis dive into all the details this afternoon, I’ll add that his system scans thousands of stocks every week, calculating each stock’s “quantum score,” as Louis just noted.
When any given stock qualifies for an “A” according to Louis’ system, that’s when Louis says to watch out for big moves in its share price.
***But a poor quantum score can be instructive as well, highlighting toxic stocks that need to be purged from your portfolio
Back in January, Louis released a special report entitled “Portfolio Destroyers: 10 Ticking Time Bombs to Sell Now.”
The stocks Louis included had fared poorly on his algorithmic-based quantum score stock screens.
So, how did things play out?
Three months later, nine out of the 10 stocks in the report have dropped, many posting double-digit losses.
Here are a few:
Twitter falling over 20%…
Zillow slipping over 25%…
Match Group tumbling over 36%…
Uber cratering nearly 37%…
Wayfair showing loses over 43%…
Peloton collapsing over 40%…
And Carvana falling well over 50%…
As you can see, it doesn’t matter that we’re dealing with highly popular stocks with well-known brands. At the end of the day, if a company’s core fundamentals are deteriorating, it’s only a matter of time before that weighs on the stock price.
With this in mind, Louis just issued a new “must read” report called, “13 Stocks To Sell Immediately.”
The stocks Louis has identified aren’t measuring up today based on a “dangerous shift” he believes is taking place in the market. He’ll be diving into these details at today’s event.
If you want access to this new report, it’s yours free when you register for today’s event. Click here to get it delivered to your inbox just a few moments from now.
***Bottom-line, this is not an easy market for investors
But that doesn’t mean there aren’t certain stocks that are surging, which can help protect your portfolio from today’s historic inflation. You just have to know how to find them. And that’s where Louis and his event this afternoon can help.
I’ll give him the final word:
Of course, Quantum Scores aren’t the only thing I’ll be discussing during my Prediction 2022event. We’ll also cover…
