What’s the right stock positioning today? … a special, live event this afternoon with Louis Navellier, Eric Fry, and Luke Lango … four free stock recommendations

 

Yesterday, an Amazon Web Services (AWS) outage resulted in widespread chaos.

The e-commerce giant’s delivery operations went down, preventing drivers from delivering packages. Vans filled with holiday purchases sat idle on the side of the road with no communication from headquarters.

The meltdown was hardly limited to Amazon…

Amazon’s cloud computing unit went down, impacting the entire “US-East-1” region. This resulted in website issues for Disney, Netflix, Slack, Ticketmaster, Robinhood, Coinbase, and even InvestorPlace.

In fact, our special Early Warning Summit 2022 event with Louis Navellier, Eric Fry, and Luke Lango – scheduled for last night at 7 PM ET – had to be postponed to today at 4 PM ET due to the technical meltdown.

Fortunately, AWS is back up and Louis, Eric, and Luke, were all able to adjust. We’re hoping you’ll be able to make the new time today as well.

That said, this curveball turned into a tremendous pain for many people.

But guess what?

No one will remember it a month from now. Possibly even a week from now.

Packages will eventually arrive. Websites will work without glitches. And Amazon will continue printing money through its suite of business operations, despite yesterday’s chaos.

***There’s an interesting parallel between yesterday’s AWS meltdown and the various investment “curveballs” that are scaring so many investors today

Inflation… the potential for rate hikes… slower economic growth due to Covid…

None of these issues should be minimized.

They cause investment setbacks, require greater analysis and perhaps tailored market approaches, and demand emotional control.

But eventually, when viewed from a long-term perspective, they too will be completely forgotten, just like yesterday’s AWS meltdown.

Don’t believe me?

Below is the chart of the S&P 500 since 1872. Look at its lower-left to upper-right slope.

Now, in this entire period dating back to 1872, can you name, say, ten events – that’s only one for every 15 years – that caused a sustained, multi-quarter drop in the market?

If so, good for you, but you’re in the minority.

Viewed in the long-term, the market issues that terrify are forgotten. Markets churn higher.

One of the best investment books of all time is named “Triumph of the Optimists.” The name is a tribute to this long-term “up” nature of stocks that rewards optimistic investors who have the courage to stay the course.

***But this doesn’t mean investors are in for a smooth ride up as we move into 2022, or that all sectors or stocks are going to perform well

And it certainly doesn’t mean that foolish investment choices won’t destroy wealth.

As we stand as the cusp of 2022, we’re at a critical inflection point in the market. Next year, we’ll see fortunes made and lost as investors take opposite bets on how “curveball” issues will play out.

So, do you let this scare you out of the market? If so, and the market keeps climbing, you could miss out on significant wealth creation.

Of course, if you try to be an “optimist,” per the book title, yet pick the wrong investments, it could kneecap your portfolio.

What’s the answer?

How about not letting the curveballs scare you out of the market, but making wise investment decisions that protect your portfolio from their damage?

And that’s where this afternoon’s Early Warning Summit 2022 event with Louis Navellier, Eric Fry, and Luke Lango comes in.

With all likelihood, investing in 2022 won’t be as simple as “stay invested” or “move to the sidelines.” Some sectors will surge, other will languish. The challenge is creating a portfolio that navigates the specific conditions of 2020.

This afternoon at 4 PM ET, Louis, Eric, and Luke will be discussing just that – diving into inflation, the Fed, economic growth, a potential market correction, and most importantly, what you should be doing right now, in light of all of it, to prepare your portfolio for 2022.

Attendees will even get four free stock recommendations for the new year, simply for being a part of the evening. One of those four is a stock that Louis, Eric, and Luke believe could be the top pick of 2022.

***A preview of some of the big opportunities in front of investors today

Last week, our CEO, Brian Hunt, sat down with Eric to discuss opportunities heading into next year.

For newer Digest readers, Eric is our macro specialist. He also has more than forty 1,000% winners in his track record.

In the interview, Brian asked Eric about the electric vehicle sector, which you likely know, has been red hot this year.

Let’s jump in with Eric’s take on whether or not this is still an attractive sector for your money today:

A lot of times it’s difficult for investors to distinguish between what is a powerful, big-time secular megatrend and what is a powerful investment opportunity.

There’s no doubt that EVs and the associated industries of energy storage are a long-term, powerful megatrend. It doesn’t mean that you can just throw a dart at that sector and make money.

You have been able to do that for the last year or two, but now a lot of the stocks in that sector are extremely pricy.

So, is Tesla going to go from a $1 trillion market value where it is today to $2T trillion? Probably not soon.

If you fan out though, into some of the support industries, or support technologies, or battery metals plays, you do find opportunity there – today.

Those companies are tapping into this powerful trend, but they don’t have this marquee high-valuation that a company like Tesla does.

These are the types of opportunities Eric, Louis, and Luke will be discussing at their event – able to ride along with massive megatrends, but not burdened by the same nosebleed valuations that so many popular stocks carry today.

Now, you might be wondering, what about inflation and higher interest rates?

All signs point toward the Fed finally raising rates in 2022. Won’t that be a massive headwind to stocks – even reasonably-valued stocks?

***How bad will inflation get, and what does it mean for investment opportunities?

Last week, Brian also sat down with Luke to discuss this topic.

For newer Digest

 readers, Luke is our hypergrowth expert. He targets cutting-edge technology stocks that are positioned to experience extraordinary hypergrowth – aligning your money with these stocks is one of the best ways to accelerate your wealth creation.

We’ll jump in after Brian asks Luke if inflation is a worry, and how that affects his investment decisions today:

We’re not worried about inflation at all. I know everyone else seems to be worried about it. We’re not. There are two reasons for that.

The first is you have to look at why are we in a hyper-inflation environment today. It’s because demand is outstripping supply. Well, why is that? Where is global demand located?

It’s the United States, Europe, Canada, and developed economies that have the resources to – and have – tackled Covid-19. So, in those counties, the pandemic feels almost like old news and demand is back to normal. It’s booming.

But where is global supply located? It’s located in emerging economies. In China, southeast Asia, India. In those countries, they do not have the resources, like developed economies, to tackle Covid-19…

So, while demand is back to normal, supply is not. That creates the imbalance you’re seeing today which is causing the inflation we’re talking about.

We are confident that those emerging economies are getting the resources and the help they need to make Covid-19 a problem of the past, balancing things out in 2022…

Thereafter, we’re in a normalized period. What happens in that normalized period? Well, we’re going to go back to what happened in the 2010s, which is companies adopting cost-cutting and productivity-boosting technologies, automating labor, finding the cheapest way to produce goods and services…

You get past this imbalance, 2022+, and you’re looking at an environment where costs will be plunging.

Luke also sees rates from the Fed staying lower than expected for longer than expected. We don’t have room in today’s Digest to explain those details. But Luke will touch on it this afternoon.

***Finally, what does Louis Navellier see as the best place to make money in 2022?

For newer Digest readers, Louis is a legendary quantitative investor. In fact, Forbes called him “the King of Quants” and the The New York Times called him “an icon among growth investors.”

Brian also interviewed Louis last week. When asked about his favorite investment sector for 2022, Louis answered “Well, it’s clearly semiconductors because the acute shortage went from bad to worse.”

Louis jumps into details, discussing huge demand from electric vehicles, artificial intelligence, and other “smart chip” sectors. It’s a situation of massive demand meeting limited supply – which bodes well for prices.

From Louis:

This (market setup) is going to be lasting for some time, and I’m quite enamored with the semiconductor sector.

A lot of times when stocks double you think, “ok, that’s it.” These are much bigger gains.

***Join Louis, Eric, and Luke today at 4 PM ET for all the details we haven’t had room to cover

And remember, there will be four free stock recommendation giveaways – including one that all three analysts believe could be the top play of 2022.

If you’re unsure how to position your money today, join us this afternoon to discover how three world-class investors are sizing up today’s market risks and opportunities. It’s the best way we know to get ready for 2022. Just click here to reserve your seat.

We’ll see you there.

Have a good evening,

Jeff Remsburg