I’m in shock at what’s been happening in the last five days.
Yes, we learned President Trump, the First Lady and other White House staff have contracted COVID-19. We wish them the best for a quick and complete recovery.
The news impacted the markets this morning but I don’t think we should worry too much. The President and his family will get the very best in medical treatment, and if they can recover quickly, it will give us all hope moving forward.
What has left me shocked is the market’s action this week. In the last five days, the S&P 500 has been on fire, climbing 4.13%. Our “AA” rated stocks — those that receive an “A” in two crucial factors in my Moneyball system for stocks – are up an average 8%, or nearly double the S&P.
So a dip in the markets this morning is to be expected after the recent runup.
Bottom line, I’m not worried and do expect the market will rebound incredibly.
Take a look at what’s been happening with technology stocks, which have been tearing up the market this year. Interestingly, the big winners have been a select few.
Case in point: Over 60 stocks in the NASDAQ have jumped at least 400% — a greater number than during any similar period dating back to 2000, according to a recent report by the Wall Street Journal. Of these, 21 were companies in the healthcare and biotech sector, including COVID-19 vaccine candidate makers Novavax (NASDAQ:NVAX), which soared as high as 4,385%, and Vaxart (NASDAQ:VXRT), which rocketed as high as 4,742%!
On the flip side, more than 1,000 stocks saw drops of 50% or more at their lows.
Now, the majority of stocks that rose over 400% in 2020 have since fallen back a bit, but the fact remains it’s been a remarkable run, and much of it has been thanks to technology companies.
Initial public offerings, or IPOs, are also seeing some of the largest gains during their market debuts since 2000. I wrote about the IPO of cloud-based data-warehousing company Snowflake (NYSE:SNOW) before it debuted on September 16 and climbed 30% to a high of $319 per share on that day. It’s since settled down in the $245 per share range it’s at now.
To be clear, I don’t recommend IPOs. Personally, I like to wait and see if a company can perform well as a public business and have a chance to prove its fundamental superiority.
Speaking of fundamental superiority … I believe greater gains are ahead for the fundamentally superior stocks I run through the gauntlet of my Moneyball for Stocks system. I shared details of my system with thousands of investors Wednesday during my Moneyball Multiplier Challenge on Wednesday, so click here if you’d like to watch the replay.
The reality is separating the crème de la crème in a high performing sector from the rest is the real key to the success of your portfolio.
Take a look at the tech-centric NASDAQ, which has far outperformed both the S&P 500 and Dow year-to-date. As the chart below shows, despite recent declines, the NASDAQ has surged over 26% this year, compared to 4.6% climb for the S&P 500 and 2.5% dip for the Dow.
As I’ve been telling regular readers for months, only a small pool of “super achievers” will drive the lion’s share of stock market growth.
That’s where the “all-weather” effectiveness of my Moneyball system comes into play. After analyzing thousands of factors that can help determine the biggest, best and most reliable predictors of future stock movement, I came up eight key predictive indicators, or KPIs, that form the foundation of my Moneyball for Stocks system.
It was this pure numbers-based research that had us buying homebuilders in 2002, just as they began a huge multi-year run higher. The very same stock system led me to recommend Google (NASDAQ:GOOGL) in its early days, and Amazon (NASDAQ:AMZN) in 2003, when shares were trading for peanuts. Just $46. Today, they’re trading at around $3,190 per share. That’s a 6,834% increase!
Another reason why my Breakthrough Stocks have had such enormous success is because we target little-known small-cap businesses that are on the verge of a breaking out.
My Moneyball system zeroes in on these eventual winners, spots their key momentum levers, and allows smart folks to learn how to get positioned months or even years before the mainstream media finally catches on.
You can view how the system works in more detail by watching the replay of Wednesday’s Moneyball Multiplier Challenge.
And if you decide to sign up for Breakthrough Stocks afterward, we’ll rush you my latest special report — My Top 3 High-Flying Moneyball Stocks Poised to Skyrocket by 1,000% or More — absolutely free of charge.
I’ve scanned the entire universe of available stocks, and have pulled out the very best A-rated selections as of this moment. In my report, I recommend three fundamentally superior small-cap stocks flying under the radar in today’s hottest sectors.
One company is an up-and-coming leader in the 5G wireless technology that’s taking the world by storm, and will help power the next generation of billions of devices connected through the internet known as the Internet of Things.
This company just notched its highest level of sales in its history during the third quarter, and is set to take advantage of the rising demand for highspeed internet now that so many folks are working from home.
It also holds a rare AAA-rating in my proprietary Portfolio Grader. That means it earns an “A” for its Fundamental Grade, Quantitative Grade and Total Grade. You can learn more about my “grading” process here.
The recording of Wednesday’s Moneyball Multiplier Challenge has all of the details you’ll need to see how my Moneyball system operates. If you then choose to join me at Breakthrough Stocks, you’ll get my exclusive special report, My Top 3 High-Flying Moneyball Stocks Poised to Skyrocket by 1,000% or More at no extra cost.
Note: The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owned 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:
Zoom Video Communications (ZM), Amazon (AMZN), Novavax (NVAX)
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation.