Why I Decided to Take My Quant-based System to The Next Level

Regular readers of mine know I’m a numbers guy.

I’ve been using advanced computer models to analyze the stock market for nearly 40 years.

My system helped me find the #1 S&P stocks for eight years in a row, from 2012 to 2019.

Everything I recommend goes back to the painstaking stock grading I do, the results of which you can see yourself in my Portfolio Grader.

The calculations are detailed, but what I’ve ultimately determined is that when a unique set of eight factors come together in a certain way for a stock, it leads to potentially enormous gains.

And of these eight factors, there’s one I consider even more important than my Fundamental Grade — I’m talking about my Quantitative Grade.

This measures a stock’s return, independent of the market. I also regress the stocks measured in the Portfolio Grader against different indices and always pick the one with the highest correlation. That way I don’t, for example, compare a small-cap stock to a big index. This would be like comparing a chihuahua to an elephant.

The bottom line is that the Quantitative Score helps me accurately determine the buying pressure from institutional investors behind a given stock.

But I’m always working to improve my calculations.

I’ve recently gone back to my computer systems and pushed them harder than ever before. I’ve crunched trillions more data points and explored the outer reaches of the financial world.

What I’ve come up with is a technique that can help you see gains you probably thought weren’t possible. And could help you catch up on your retirement. I’m calling my brand-new initiative Project Lightspeed.

Let me show you some examples of what it can do…

When my system alerted me to Intuitive Surgical, Inc. (ISRG), the first thing I noticed was that the fundamentals were strong. Net income and revenue were soaring into the hundreds of millions. Earnings per share was crushing expectations.

But just as importantly, the company’s surgical robot called the Da Vinci system was taking the health care industry by storm. In the previous year, the system was used in 650,000 medical procedures around the world.

After I recommended Intuitive, its stock climbed 160%–a great gain that would have more than doubled your money.

But that’s nothing compared to what you could have done by applying the techniques behind Project Lightspeed. My back test showed that you could have turned that 160% gain into a 399% gain…making nearly five times your money…with the same stock over a shorter time frame.

Here’s another example of what I’m talking about.

But, believe it or not, you could have made 1,329% gains instead on the exact same Noah Holdings stock, over the same time, using this new strategy.

As you can see, with this project, I took my quant-based systems to the next level, exploring one of the most profitable and controversial corners of the market — an area I’ve rarely, if ever, written or talked about before.

This may be the most audacious, most potentially lucrative research I’ve ever presented.



Louis Navellier