Louis Navellier sees attractive conditions for stocks … how to get ready for 2022 … where the VC pros are looking for tomorrow’s big winners
I expect the current “Goldilocks” environment of robust GDP growth, low interest rates and an accommodative Fed to persist for the foreseeable future—and that’s great news for the stock market.
That forecast comes from legendary investor, Louis Navellier. It was part of his Accelerated Profits issue earlier this week.
Let’s jump back in with Louis explaining why we shouldn’t worry about hawkish surprises from the Fed:
Federal Reserve Chairman Jerome Powell was recently reappointed for a second four-year term. So, the Fed is expected to remain dovish.
Yes, the Fed’s quantitative easing was curtailed from $120 billion per month to $105 billion per month, but the decrease was lower than many economists anticipated.
The Fed’s ultralow interest rate policy also remains in place, with our central bank only expected to raise rates by 0.25% in 2022.
***In the meantime, there’s positive news on U.S. consumers and businesses
In Louis’ update, he highlights how Adobe Analytics anticipates Americans could spend $207 billion in November and December, or a 10% year-over-year rise. Louis believes this shopping season could smash all records.
As to U.S. businesses, the Commerce Department reported that durable goods orders rose 0.5% in October. That topped economists’ estimates for a 0.3% increase.
Year-to-date, durable goods orders have jumped 22.1%, and shipments have risen 13.1%.
Back to Louis:
When both consumers and businesses are healthy, it effectively acts as the “one-two” punch to propel the U.S. economy dramatically higher…
Now, I know it doesn’t feel like investors are pouring into the stock market right now, given all the wild swings last week and the market’s dismal start to December. But the first half of December is historically weaker than the second half of the month.
The stock market tends to resume its climb higher the closer we get to Christmas, as Main Street’s holiday spirit rubs off on Wall Street. As a result, according to Yardeni Research, the S&P 500 has posted gains in December 73% of the time since 1928.
So, I encourage you to not let the market’s daily gyrations scare you out of the market.
***If you want even more analysis about what’s in store for stocks, stretching into 2022, we have you covered
Yesterday afternoon, we held a special, live conference called Early Warning Summit 2022, which turned into one of the biggest events in InvestorPlace history.
Thousands of attendees showed up to listen to Louis, Eric Fry, and Luke Lango discuss what’s coming in 2022 for the investment markets, and how to position your wealth accordingly.
These expert analysts discussed the major issues facing investors today – inflation, Fed policy, the pandemic’s impact on growth, and far more. They even gave away the tickers of four different stocks, poised to soar in 2022.
If you missed the event, you can watch the replay by clicking here.
Bottom line, if recent volatility has you anxious… if you don’t know which sectors are likely to treat your money best next year … if you simply want to discover how three professional money managers are viewing today’s markets, be sure to catch the replay of Early Warning Summit 2022.
***Switching years, how would you like to have invested in Coinbase in 2013 at $1 per share?
Legendary venture capital firm, Andreessen Horowitz (a16z), did just that.
So, when Coinbase went public earlier this year at a price of $381 per share, a16z enjoyed a gain of $9 billion.
Yes, we believe this decade will see amazing returns from certain public market sectors. But there’s no denying that investing in a tiny, private startup company – that eventually becomes a huge publicly-traded company – produces returns that dwarf anything you’d get from investing post-IPO.
It’s obviously too late to see this type of gain from Coinbase, but would you like to know where a16z is putting its money to work today?
Our venture capital expert, Cody Shirk, just shed light on the answer in his latest issue of Venture Capital Digest.
For newer Digest readers, Cody is a veteran venture capital investor who’s done deals all over the world, resulting in a growing list of 1,000%+ venture capital winners under his belt.
In his free newsletter, Venture Capital Digest, he shares tips and tricks to private investing… trends he’s tracking… even deals that catch his eye. Cody’s Digest is a fantastic way to keep a finger on the pulse of the venture capital world.
In last week’s issue, he highlighted where a16z is hunting now for tomorrow’s $9 billion windfall.
From Cody:
Right now, a16z is raising money for a new fund — and expects to bring in up to $1.5 billion.
The focus? Healthcare and biotech.
To be clear, we’re not talking traditional healthcare investments.
Instead, a16z and other major VC firms are targeting cutting-edge companies that challenge the traditional ways we care for our bodies.
What kinds of companies are we talking about?
Let’s take a look.
***Cody profiles three private companies – DeepCure, Isomorphic Labs, and Rigetti
Deepcure uses artificial intelligence (AI) to rethink the science of drug development. The company’s vision “is to use AI-driven discovery to create better molecules and faster cures for every disease-relevant protein target.”
Isomorphic Labs is “a commercial venture with the mission to reimagine the entire drug discovery process from first principles with an AI-first approach and, ultimately, to model and understand some of the fundamental mechanisms of life.” By the way, it’s a Google spinoff.
Finally, Rigetti is building quantum computing technology that “combines advances in engineering, physics, computer science and manufacturing. Integrating all these specialties under one roof and in one technology stack allows us to move further, faster.”
Back to Cody on why he finds this third company especially interesting:
First off, Rigetti is not necessarily a biotech company. Instead, Rigetti is focused on building quantum computers that can be applied to anything from food production optimization to financial modeling. But their primary target is the huge biotech industry.
The second and more notable reason Rigetti is interesting is that a16z already invested in this company through its previous biotech fund.
And guess who is going public via a sure-to-be-lucrative-for-early-investors SPAC (special-purpose acquisition company) very soon?
That’s right… Rigetti.
By the way, we talk a lot about hypergrowth trends here in the Digest. Keep your eyes open for all things “quantum computing.” It’s coming – and it’s going to transform our world and our daily lives. More on that in a coming Digest.
***As we’ve noted before, the technological advancements we’re going to see this decade will be mindboggling
And we have the chance to invest in many of them from their infancy.
The amount of wealth that will be created as a handful of these tiny, private companies turn into massive mega-cap stocks will be extraordinary. So, if venture capital investments don’t have a place in your current portfolio, please begin to learn more. If you look at the portfolios of the uber-rich, elite institutions, and billionaire hedge funds, they all have significant exposure to private equity.
I’ll give Cody the final word:
In the coming years, there will be medical breakthroughs that we simply cannot comprehend.
Breakthroughs like 3D-printed organs, cures for previously incurable diseases and even reversing the aging process.
Quantum computing, AI and other technological advancements will completely rock the entire medical world…
Have a good evening,
Jeff Remsburg
