There’s a bit of controversy in the market right now. One camp says, “Stocks are about to soar. The fourth-quarter earnings season is here!” The other camp says, “There’s too much headline risk from rising political tensions, the coronavirus pandemic, struggling U.S. economy and more.”
So, which is it?
Folks, the numbers don’t lie. The analyst community has continued to increase its fourth-quarter earnings outlook over the past three months, which bodes well for wave-after-wave of quarterly earnings surprises. According to FactSet, the S&P 500’s fourth-quarter earnings are now forecast to decline 8.8% year-over-year, which compares to previous forecasts for a 12.7% decline.
So, just keep watching the market’s best stocks, and buy the dips. Don’t get too distracted by the naysayers. They’ll always find something negative.
When I was in college, for example, my economics professor told me that the stock market could not be beat … that you might as well put your money into index funds and call it a day.
But then I wrote an algorithm that crushed the S&P by a factor of more than 3-to-1. My algorithm worked so well, in fact, that I even began publishing stock recommendations out of my dorm room. I wasn’t even 19 yet!
Yep, new technologies and investing can be a powerful combination, if you have a few programming skills.
I’m proud to say I was there for some of the biggest success stories in the past 30 years. Let’s take a quick look back, because these events are still very instructive today. Keep these lessons in mind next time there’s a bad earnings headline, or some other excuse for the “permabears” to spout gloom and doom on TV.
How I Discovered the Most Innovative Companies Before The Crowd
I’m an investor who likes to “follow the money.” So, I’m constantly fine-tuning my stock picking system — and finding exciting new applications for my methods. My latest is called Project Mastermind.
And back in the day, I wrote a proprietary trading code that uncovered Oracle (NYSE:ORCL) when it was trading for just $6 per share … well before it became one of the leading and most valuable software corporations in America and traded north of $45.
It zeroed in on Google (NASDAQ:GOOGL) way back before most Americans had even heard of the company. Today, it’s over $1,000 per share!
MarketWatch even recognized me as “The advisor who recommended Google before anyone else.” But it wasn’t really me who first spotted it; it was my proprietary algorithms. All I had to do was know a good thing when I saw it.
In fact, the environment right now feels very much like it did when I bought Intel in the 1980s.
Lessons of the PC Revolution
I vividly remember the days of mainframe computers. That’s what I used back when I was working on my trading algorithms in college. Mainframes were massive and by today’s standards slow and rudimentary.
So I was just as excited as anyone by the PC revolution.
And remember: They all had “Intel inside.”
It was a tiny device — the silicon microchip — that barely anyone had heard of when IBM started putting them into the first PCs. But Intel’s chips were far and away the best.
Today, you’ll still find “Intel inside” just about every PC in the world. And its stock price has gone up 11,875%!
Through hundreds of hours of research, I discovered how an elite type of stock consistently outperformed the broad market, year in and year out. After extensive analysis, I isolated the eight key qualities that these super-performing stocks shared … and I developed a system for finding them.
Yesterday, I hosted a special event where I unveiled Project Mastermind and revealed the stock I’ve rated number one based on insights from Project Mastermind — ticker symbol and all. Click here to watch a replay.
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:
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.