If you’re looking to buy a house, where would you start?
By identifying the neighborhoods where you want to live?
Or by or looking for the perfect house?
Both approaches work, but ideally you want both. You want the right house in the right neighborhood.
The same is true for investing. You can start with the big theme (the neighborhood) or you can look for individual stocks (the house).
When they come together, it’s investing magic …
I start with the neighborhood approach. When I research stocks, I look first at massive high-growth trends and then work my way down to individual companies. This is called a “top down” approach.
It’s different from many Wall Street firms, which use a “bottom up” approach. They pay less attention to the mega-trends and concentrate on the characteristics of a specific company, regardless of its sector.
There is a place for both in long-term investing, but you really have to sit up and take notice when they identify the same stocks as likely big winners.
That’s exactly why I was so excited to join forces with my friend and colleague Louis Navellier.
Louis has been in the business for 40 years and is a numbers genius. He’s had tremendous success with the bottom up approach, analyzing tons of data using computer models and artificial intelligence. He sets up sophisticated algorithms and lets the computers go to work sifting through piles of predictive data to generate the best investments in the market.
On the flip side, I start with the big-picture view and then put my boots on the ground to conduct in-person research. That extra layer to my top down approach is important. I travel extensively to meet with industry leaders and CEOs, attend conferences, and more.
For example, I flew to Portugal last month for the world’s largest technology conference, where I chatted with some of the most influential people in tech today. Their companies are changing the world. I got to look them in the eye, see firsthand what they are most excited about, and ask questions. I take that information and combine it with my big-picture, hypergrowth investing style to find the next big winners in the stock market.
Let me be clear that I also incorporate data … just as Louis does in his own research as well. I use computer models to help forecast future revenue and earnings growth, and I strongly consider a stock’s valuation before recommending it to my readers.
Louis and I have known each other for years, and we often have a similar view on the broad market. For some reason, we never considered combining our two systems. After we floated the idea a few months ago, we got to work and discovered something very exciting:
We may go at investing a little differently, but we ended up in the same place for the coming year for both the market and a select few stocks.
Louis and I recently sat down to discuss what our research reveals about the market in 2020. We both believe it will be one of the greatest years for stock investors. Both of our approaches tell us the same thing loudly and clearly — now is the time to be in stocks.
Even more amazing, some of the very same stocks came up as strong buys in my research as well as in Louis’ system.
Of the more than 5,000 stocks that we put through Louis’ high-powered computer models and my research, we narrowed them down to just nine stocks for 2020. We call them our Power Portfolio.
We actually just alerted readers to a new stock on Dec. 19. This one also flashed a “strong buy” signal in both of our systems, making it too good to ignore. That’s right … our Power Portfolio now consists of ten stocks!
Whether you like a top down approach or a bottom up approach, you need to be invested in stocks heading into 2020. And if you like the idea of investing in the best stocks from both of our systems, you can click here to learn more.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.