One sector about to produce an abundance of winners … it’s happened before, creating outsized returns for investors who saw what was coming … a special live event today with all the details

 

Last night, the Georgia Bulldogs beat the Alabama Crimson Tide to win the 2021 College Football National Championship.

It’s just the latest win in a long history of domination…by the Southeastern Conference (SEC).

For all you non-football fans, both Georgia and Alabama are part of the SEC. This means that regardless of who won last, this elite football conference added another National Championship to its list.

And quite the list it is.

Below, we look at which school took the title each year since 2006. A SEC school has won it 12 of those years. Only Clemson, Ohio State, and Florida State have won the title from a non-SEC conference during this period.

Now, as you might suspect, lots of championships corresponds with lots of great players.

So, if you’re a talent scout in the National Football League (NFL), are you going to pay attention to players coming out of the SEC?

Obviously.

That’s why the SEC has the most former student-athletes in the NFL, more than any other conference (Alabama takes the top spot with 53 players on active NFL rosters).

And as a scout, are you going to spend more time analyzing players from the SEC than, say, the Sun Belt Conference?

No disrespect to the Sun Belt, obviously. It’s just that it’s not on the same level as the SEC when it comes to generating football stars.

So, yes, when you find a conference that produces an abundance of winners, you’d make it your focus. Giving equal research time to lesser conferences just wouldn’t make sense.

Let’s back up a moment…

What in the world are we talking about? Why are we starting today’s Digest with football?

Because there’s a similar dynamic in investing. Every now and then, a sector or trend emerges that produces an abundance of winners. Far more than is typical.

When that happens, it creates a “make hay while the sun shines” environment for investors. It’s a temporary moment of focused outperformance that can transform portfolio returns.

And legendary investor, Louis Navellier, sees a red-hot sector setting up today to produce a slew of such winners.

Here’s how he views these opportunities:

(When I find a dominant moneymaking trend) I don’t just recommend a stock or two and call it a day.

I analyze these trends from every conceivable angle.

I ask myself: Who are the main players? The manufacturers? The suppliers? The distributors? Are there elements or precious minerals that will be in demand as a result of this trend? Are there other new technologies that will develop? What small, off-the- radar companies with a competitive advantage will corner a significant portion of this new market?

I look at it all. Once I see one of these trends developing, I don’t stop digging for “gold.”

I mean, why have one or two massive winners when you can have eight or nine?

Today at 4 PM ET, you’re invited to a special, live event called the Big Bet Summit, in which he’ll be profiling the specific trend that has him so excited.

***The analysis behind a red-hot sector

For newer Digest readers, Louis is a legendary quantitative investor. “Quant” simply means he uses numbers and algorithmic rules to guide his investment decisions. Forbes even named him the “King of Quants.”

As you might expect, quantitative analysis is at the heart of how Louis finds a dominant, moneymaking trend. Here he is describing his process:

I dive into the numbers, focusing on eight key factors:

• Sales growth.
• Operating margin growth.
• Earnings growth.
• Earnings momentum.
• Earnings surprises.
• Analyst earnings revisions.
• Cash flow.
• Return on equity (ROE).

This investing approach, along with my proprietary market-beating formula, helps me find companies with excellent fundamentals that attract strong institutional buying pressure.

That buying pressure, in turn, dropkicks and drives my stocks higher.

But every now and then, Louis’ system will unearth an entire sector of potential winners. It’s a rarity that happens when a dominant trend arises that’s capable of producing fundamentally strong winners across the board.

It’s the SEC sending not just one player to the NFL per season, but dozens upon dozens.

***History shows that mining a hot sector for all its winners can be incredibly lucrative

Back to Louis:

I have been making big sector bets my entire career. Every now and then I see exceptional numbers lighting up an entire sector.

That’s when I stop and take notice.

For example, in the mid-2000s, my system spotted a massive trend of rising energy prices well ahead of time.

My analysis helped me find big winners like XTO Energy for 287% gains… Tesoro Corp. for 150% gains… Valero Energy for 180% gains… Holly Corp. for 457% gains…

You see, my computer programs are operating at the speed of light. They’re crunching millions of data points on thousands of stocks every day. In this way, my systems constantly have “feelers” out there that are highly tuned to what’s going on in the financial world.

For another example, we could look at how Louis’ system fared during the rise of internet stocks.

His algorithms helped him spot an internet networking firm called Cisco Systems, Inc. (CSCO), before it soared as high as 16,000%.

There was also database innovator Oracle Corporation (ORCL), before it went up as high as 8,196%…

And he recommended Amazon.com, Inc. (AMZN) at $46… before it shot up as high as $3,400.

Back to Louis:

Just like with energy stocks and PC stocks, when the internet arrived, I went all in, recommending stocks with incredibly diverse product and service offerings – from e-commerce stores to search engines – all of which benefited from the rise of the internet.

The bottom line is that I found a revolutionary sector that was poised to soar, where massive amounts of money was flowing in.

As a result, folks who followed my recommendations had the chance to make incredible gains.

***There’s a new sector lighting up Louis’ quant charts today

Louis believes we’re in the early stages of a similar dominant trend that’s going to produce significant winners. Given this, as the name of today’s event suggests, he’s making a “Big Bet” on this sector:

The time has arrived again. One very important sector of the market is about to go through a major technological transformation.

It’ll remake whole industries, completely changing thousands of businesses and our daily lives.

In the coming months and years, how we shop, communicate, and travel will never be the same again once the technology from this market sector starts taking hold.

It truly unprecedented.

This afternoon at 4 PM ET, Louis will be revealing the details in his Big Bet Summit. It’s a free event, you just need to click here to reserve your seat and find out how to attend.

History has shown us that these sector-wide growth stories can be massive wealth-generators – and usually in shorter periods than gains from the broad market.

Perhaps most exciting is that Louis’ system suggests this specific growth story could be the biggest of his investment career. Join us today at 4 PM ET to get all the details. We’ll see you there.

Have a good evening,

Jeff Remsburg