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How to Join and Stay on the Right Side of the Technochasm

There is a huge and rapidly growing divide caused by technological disruptions happening right now. Soon, it will be so large that those on the wrong side won’t be able to make the jump.

I call it the Technochasm.

Simply put, the world is going through a process of computerization, automation and mass technological adoption. With every passing day, it seems like technology companies are taking over more and more of the American economy, and quickly climbing to $100 billion companies and beyond.

Apple (AAPL) has taken over our phones, Amazon (AMZN) is dominating online retail, Uber Technologies UBER) has virtually replaced the old cab companies, and Google (GOOG) has massive market share in the online search industry. Everywhere you look, in sector after sector, tech companies are grabbing market share, and generating rivers of cash flow. And the shareholders backing these tech giants have reaped the rewards.

Meanwhile, these new businesses and technologies are wreaking havoc on the established infrastructure. And it’s ripping the stock market in two. It certainly explains why tech stocks have rebounded to new highs after COVID-19 first began spreading around the globe.

Technology keeps advancing, while both creating and destroying businesses at an incredible rate, so much so that it’s creating a wealth gap between the 1% and the other 99% in America. On one side of that divide are certain tech companies that are growing faster than ever before. On the other side are the companies going bankrupt in the blink of an eye.

The good news is I’ve uncovered a technique to help keep you on the right side of this technology divide by finding big gains that investors would have never thought possible in the short term.

I call it Project Lightspeed.

With this technique, by putting up a little amount of money you can control—and see potential gains from—a large amount of money. In other words, by using the

“leverage” this technique gives you, you can see gains out of proportion to your initial investment. I’m talking about back-tested gains of 967%, 1,329%, and even 1,711%. And you can do it many times, in less time than it would take you with a normal growth stock.

I spent hours using my proprietary system to assess loads of data, exploring one of the most profitable (and controversial) corners of the market. This is an area I’ve rarely – if ever – written or talked about before.

Not a lot of people take the time to assess stocks this way – much less find a way to make short-term aggressive gains in the process.

Sincerely,

Signed:

Louis Navellier

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How to Put Your Retirement Into Hyperdrive

There’s no denying that the coronavirus pandemic took a significant toll on the U.S. economy. It triggered a recession as states shut down, restrictions were imposed, businesses closed, and tens of millions of people found themselves out of work.

The good news is the U.S. economy is beginning to recover. The Atlanta Fed is now estimating 9.5% annual first-quarter GDP growth. In addition, retail sales surged 5.3% in January after declining for three-straight months. This was significantly above economists’ estimates for a 1% rise in retail sales. Unemployment at 10 million is still high, but better than the 30 million last April.

The bad news is about 63% of Americans are still living paycheck to paycheck, leaving little room to squirrel away money for retirement. In fact, just having enough for emergency savings is proving to be difficult. More than 47% of folks said they had to use all of their emergency savings.

Saving for retirement is already difficult, as people are living longer, healthcare costs keep rising, more people are in debt and many companies are not offering 401K plans. The Federal Reserve Bank of New York found that U.S. household debt sits at a stunning $13.29 trillion, up $618 billion from $12.68 trillion in 2008. 

So, it’s no surprise that not being able to retire is American’s number-one financial fear, according to a GOBankingRates survey, especially when it will cost anywhere from $500,000 to $1,000,000 to retire comfortably. The Retirement Insecurity 2021 survey noted that about half of its respondents weren’t sure they’d be financially secure in retirement. And, because of the pandemic, about two-thirds of those surveyed had to push back their retirement dates.

The bottom line: We have a retirement crisis in America today.

Now if you find yourself in this camp, then my Project Lightspeed initiative is for you.

With this project, I took my proprietary stock-finding system to the next level. I crunched trillions of data points, exploring one of the most profitable (and controversial) corners of the market. This is an area I’ve rarely – if ever – written or talked about before.

With Project Lightspeed, I uncovered a technique to help find big gains that investors would have never thought possible in the short term. I’m talking about back-tested gains of 967%, 1,329%, and even 1,711%. And you can do it many times, in less time than it would take you with a normal growth stock.

Gains like these would not only help you make up a lot of ground on your retirement but potentially shorten the gap by years.

I should note that with Project Lightspeed my focus is not on stocks, but rather something more potentially profitable. The reality is if you want to live a rich retirement, index funds and mutual funds aren’t going to get you there; bonds aren’t going to do it; dividends aren’t either.

This is, by far, my most aggressive, but also my most lucrative research.

So, if you’re looking to catch up on retirement or put it into hyperdrive, you don’t want to miss out on my special Project Lightspeed event, where I’ll discuss my newest initiative and why I consider it a “potent weapon” that will give investors the chance to rack up triple-digit winners.

Sincerely,

Signed:

Louis Navellier

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Emotions and the Stock Market Should Never Mix

An important, often overlooked step that is crucial to becoming a great investor is understanding why we make the decision we make.

Take this situation for example: Say something dramatic happens on Wall Street. A lot of folks like to play the “blame game.” It can get very philosophical. But I’ll let you in on a secret: At the end of the day, the culprit is almost always the same…

Emotions are what’s driving our behavior.

That’s true today, and it was true in 100,000 B.C.

Imagine you and your hunter/gatherer tribe are out and about… moving to a place with more fresh water.

On your way, you see three dozen terrified members of your neighboring tribe running for their lives. It’s a human stampede.

Your instincts will tell you to run like the wind. Your instincts will say there’s a good reason three dozen people are running for their lives. It doesn’t matter if you can’t see a saber-toothed tiger or a rival tribe with spears… you just know it’s time to run.

This reason – survival – is the core reason why humans find comfort in crowds. It’s how we survived in the wild and became the dominant species on Earth. To this day, we know having your own crowd – your family, friends, and coworkers – leads to longer, better lives.

However, the desire to be part of a crowd can kill your stock portfolio. Going your own way can save it.

Bottom line: The human brain is a marvelous tool for creating art, music, language, and engineering feats, but it’s a terrible tool for investing.

The more you know about the workings of your own mind, the “bugs” inside it, and how they work against our investment performance, the more you can develop strategies to mitigate the negative effects of those bugs.

In today’s Market360, I’ll detail Crowd-Seeking Bias, how it works, and how you can neutralize its negative effects.

The Problem with Crowd-Seeking

A lot of you are probably fans of momentum investing. The truth is, I am, too. You always want to capitalize on a trend, and trends are made up of people.

But while following the crowd CAN result in great momentum plays…you don’t want to do so blindly.

The crowd-seeking I’m talking about – follow the herd, think later – is responsible for a lot of failed investments. It means you won’t pick up on a shift in the trend. Thus, you’ll get your timing all wrong. You’ll often end up buying near the highs and selling near the lows.

With Crowd-Seeking Bias, even the best investing ideas can become a losing proposition.

The flip side is to be a contrarian. In other words, to buy the dip and sell the highs.

As we’ve established, though, it goes against our instincts. That’s why everyone isn’t Warren Buffett. But you can get his level of returns (or better) by checking your emotions at the door – and sticking with a pattern that works.

The premise is simple:

Look for a company that’s still growing like crazy – in terms of sales, operating margins, and especially earnings. Whenever its stock experiences a sell-off…then that’s a great opportunity. And those fundamental factors are exactly what I’ve designed my system to detect.

You only want the highest-quality companies, which my proprietary system has helped me find for over 40 years now. 

Operating margins, sales metrics, earnings projections…it all sounds pretty boring, I know. That’s exactly the point. These factors don’t activate your feelings.

But now, I am breaking from the crowd even further.

If you’ve followed my advice or my Market360 articles, then you know how important my system is. But recently, I’ve uncovered a radical new financial discovery using my quant-based systems.

I call this initiative Project Lightspeed. 

With Project Lightspeed, I uncovered a technique to help find big gains that investors would have never thought possible in the short term. I’m talking about back-tested gains of 967%, 1,329%, and even 1,711%. And you can do it many times, in less time than it would take you with a normal growth stock.

I spent hours using my proprietary system to assess loads of data, exploring one of the most profitable (and controversial) corners of the market. This is an area I’ve rarely – if ever – written or talked about before.

Not a lot of people take the time to assess stocks this way – much less find a way to make short-term aggressive gains in the process.

It’s a great way to beat the Crowd-Seeking Bias we discussed today…and end up with huge gains in half the time.

Sincerely,

Signed:

Louis Navellier

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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.

Sincerely,

Signed:

Louis Navellier