An important event today with Luke Lango … how “divergence windows” can create quadruple-digit returns … 3,000%+ forward returns coming?

The greatest stock market phenomenon in the history of capitalism has arrived on Wall Street for the first time in 14 years.

Investors plugged into this phenomenon could make a lot of money over the next 12 months.

Those unaware of it — and those who ignore it — could lose a lot of money over the next 12 months.

That’s from our hypergrowth expert, Luke Lango.

If you’re like me, you’re thinking this is a pretty massive claim. What’s behind it?

Specifically, what exactly is this market phenomenon? Why is it such an extraordinary investment opportunity? And what past examples do we have that can convince me of the moneymaking possibilities?

To begin, the phenomenon is something Luke calls a “divergence.”

We’ve been profiling this here in the Digest in recent weeks. In short, a divergence happens when a stock price diverges from a company’s core fundamentals.

Another way to look at it is as a decoupling of price and intrinsic value.

These divergences are an inversion of how the stock market usually works in normal, healthy times.

You see, long-term, prices and core fundamentals tend to mirror one another. But shorter-term, in volatile, down-trending markets, fear can lead to wide divergences – which seasoned investors see as a massive opportunity.

Here’s Luke with more:

The divergences always end with those individual stocks snapping back to their true stock prices, resulting in enormous returns for investors who bought during the divergence window.

We’ve made a lot of interesting discoveries about these divergences. They usually revolve around growth stocks. They usually last a few months. They usually result in 100%-plus gains in less than 12 months.

Today, at 4 PM, Luke is holding an urgent, live event that dives into this opportunity in great detail. But for now, let’s look at a few highlights as we prepare for the specifics from Luke in a couple hours.

***The divergence today dwarfs the size of other money-making divergences from past decades

Back to Luke:

The divergence we’re seeing emerge right now is the biggest one yet?

That’s right. We saw huge divergences in 1988, 2001, and 2008. But what we’re seeing in 2022 is a bigger divergence than any of those by a wide margin.

Before we look at why this divergence might be the biggest, let’s get some context by analyzing a past divergence.

In recent days, Luke has pointed toward the divergence in 2001.

Older investors will remember that period marked the collapse in technology stocks. Yesterday’s Digest included my personal collapse story involving Nokia.

But the 2001 meltdown punished the entire sector – which included specific companies that were growing their revenues and earnings during this meltdown. This resulted in a stark divergence between price and fundamentals.

Here’s Luke with more details:

A few stocks that experienced this divergence phenomenon in 2001 were Amazon (AMZN), F5 Networks (FFIV), and eBay (EBAY).

Look what happened to those stocks throughout 2001 and 2002.

While the broader market kept reeling during that period — the Dow Jones dropped 16%, the S&P 500 dropped 24%, and the Nasdaq collapsed 27% — these divergence stocks soared by an average of more than 90%.

While folks invested in the market lost more than 20% of their wealth, divergence stock investors basically doubled their money!

Source: YCharts.com

***What makes Luke believe that today’s divergence will be the biggest one yet?

To answer that, Luke provides a scatter plot that graphs the size of various divergences (the x-axis) alongside the size of the 12-month forward returns in those divergences (the y-axis) across multiple historical examples from 1988, 2001, and 2008.

You might have trouble seeing this chart (below), so I’ll clarify that there is a positive relationship between divergence and returns. The bigger the divergence, the bigger the forward returns.

Here’s Luke with the takeaway:

…What we’re observing today across the market are some of the biggest divergence examples we’ve ever seen…

Right now, we’re seeing some stocks reporting divergence magnitudes of 500 percentage points or more.

Those are the stocks that stand to win the most in Divergence 2022 – and they are the stocks I’m researching intimately right now.

If you’re having trouble seeing the chart below, a divergence magnitude of 500 percentage points is a massive outlier compared to the cluster of data points related to most divergence magnitudes.

Today’s divergence opportunity is more understandable when you realize just how much destruction has occurred in the tech-heavy Nasdaq in the last 12 months.

We made the following point in yesterday’s Digest, but it bears repeating.

Jason Goepfert from SentimenTrader provided the following statistics last week about the carnage going on inside the Nasdaq:

More than 45% of stocks down 50%

More than 22% of stocks down 75%

More than 5% of stocks down 90%.

The only comparisons are Oct 2000 – Oct ’02 and Nov 2008 – Apr ‘09.

I hope you’re seeing how rare today’s divergence is – and how it’s also potentially one of the best buying opportunities in decades after it bottoms out.

***An example of a hypergrowth tech leader experiencing a divergence today

To illustrate one opportunity from today’s divergence, Luke points toward Roku.

Here he is describing the company:

Roku is a streaming device maker that operates a connected TV software ecosystem that connects consumers to their favorite streaming services. It is the “cable box of streaming TV.”

The company has always, still is, and will continue to grow like wildfire as more and more users, content, and ad dollars shift into the streaming TV space.

You wouldn’t think this by looking at its recent stock price.

Below, you can see Roku losing 79% of its value since July of last year.

Back to Luke:

The stock price has collapsed recently — without a drop in revenues — creating an enormous divergence.

Our numbers indicate that this is one of the largest divergences in history and will result in a fast, 200%-plus rally in Roku stock.

Source: YCharts.com

The list goes on and on.

Across the stock market today, we are seeing some huge divergences emerge in individual stocks with great growth potential.

This is creating an ultra-compelling investment opportunity, the likes of which we haven’t seen since 2008.

***Join Luke today at 4 PM ET for more details on the stocks most likely to see triple- and quadruple-digit returns

Yes, the divergence opportunity could mean you double or triple your money over the next year or so. But what I find more eye-popping are the longer-term returns that Luke has found through analyzing past divergences.

Based on data from over 20 stocks through three different divergences stretched over 40 years, Luke found that the average forward 10-year returns were in excess of 3,000%.

Join Luke today at 4 PM ET to get all the details we don’t have time to cover in today’s Digest. This is truly a remarkable opportunity. Just click here to reserve your seat.

Here’s Luke with the final word:

We will unveil our top stocks to buy to capitalize on this rare market phenomenon — the stocks which, based on our models, are the most divergent in the market today, and therefore, have the most upside potential as this market anomaly resolves itself.

Trust me. This is a phenomenon you don’t want to — and, quite frankly, can’t afford to — miss.

Have a good evening,

Jeff Remsburg