Wall Street returned from the Fourth of July holiday weekend in quite the sour mood!

The broader market indices opened dramatically lower today. Now the selling wasn’t a complete surprise, as a consolidation following the holiday was expected, but the fact of the matter remains that investors are still worried about the weak economic data in Europe and recession talk here in the U.S.

The Atlanta Fed isn’t helping quell these recessionary fears either. Last week, the Atlanta Fed slashed its second-quarter GDP estimate, now expecting economic growth to contract at a 1% annual rate. That’s down from previous estimates for 3.3% GDP growth. The estimate of private economists is much more optimistic, with estimates that range from an annual pace of 1.5% to 4.7%. So, according to private economists, it appears the U.S. economy is in the midst of a “soft landing.”

While we wait for more economic data to support the recent claims that the U.S. is in a recession, I’m pleased to report that we are not in an earnings recession. In fact, the analyst community remains relatively positive about the upcoming second-quarter earnings season – and for earnings expectations in full-year 2022.

According to FactSet, the S&P 500 is expected to achieve 4.1% average earnings growth and 10.1% average sales growth in the second quarter. Looking further out, FactSet estimates earnings growth of 10.5% in the third quarter and 9.7% earnings growth in the fourth quarter. So, when you add it all up, analysts anticipate calendar-year earnings growth of 10.2%.

Now, the second-quarter earnings season kicks off in about two weeks, so it’s especially important that you begin adjusting your portfolio now to make sure that you’re invested in fundamentally superior companies – companies with strong sales and earnings growth and positive outlooks – as these will be the go-to names for investors once earnings season gets underway.

To help ensure that you’re staying away from the worst names, I decided to revise my Portfolio Grader recommendations for 57 blue chip stocks. Chances are that you have at least one of these stocks in your portfolio, so you may want to give this list a skim and act accordingly.

You can find the first 10 stocks to sell in the chart below. Click here for the full list of 57 stocks.

Now, if you’re looking for the best stocks to buy, look no further than my Growth Investor Buy Lists stocks. They’re chock-full of fundamentally superior stocks that I expect will post wave-after-wave of positive earnings results that dropkick and drive them higher.

I recently released three brand-new recommendations – an agricultural and food company, a semiconductor play and a marine shipping stock. These stocks represent an oasis for investors, as they remain characterized by steady sales and earnings growth.

I should also add that this Friday, July 8, I will be unveiling my Top 5 stocks. I’ll give you a hint… they’re domestic companies that benefit from higher energy, food, commodity and shipping costs and are some of the most attractive buys right now. Click here now so you’re ready for the big reveal on Friday.

Also, later this month, I’ll be sitting down with legendary investor Whitney Tilson, who CNBC dubbed “The Prophet” for accurately predicting so many market moves. While our investing strategies are different, we both have been following a massive trend for 40 years that could take a turn that will forever define who saw it coming, and had their money there first – and who missed it completely. I’ll have more details for you soon, so please stay tuned.

Sincerely,

Louis Navellier

P.S. Mark your calendar for Friday, July 8. A huge financial event is coming down the pike, one that could turn some stock market investors into millionaires – while bankrupting others.

I believe America is about to enter a “hard turn” that will devastate anyone holding the wrong investments.

These folks will be blindsided, which is why I’m releasing this free presentation. In it, I’ll lay out exactly what is happening, including several key steps every American should take now.

It doesn’t matter if you have $500 or $5 million… I’ll show you how to prepare.

It’s free to watch and by doing so I know you’ll be ahead of everyone else struggling to understand what is really going on.

Click here to learn more.

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns 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:

NIKE, Inc. (NKE), Adobe Inc. (ADBE)