Navellier Blogs

Pluginomics

Fri, 06 Nov 2009 16:12:00 +0000

When it comes to taking chances with other people’s money, there’s no one better at it than the government. In this case, we’re talking about what’s going on with plug-in cars. An October 19, 2009 Wall Street Journal article concerning the...

Russia’s Gasonomics

Tue, 03 Nov 2009 16:19:00 +0000

Remembering back to the end of last year and into the frozen early months of 2009, the world continues to get a little taste of Russia’s clumsy, heavy-handed, KGB style international politics. In January of this year, Russia shut off gas flow...

The Answer to Global Warming, Plug-in Cows?

Thu, 29 Oct 2009 16:36:03 +0000

With all that nasty gas in the air creating an atmospheric hot zone that’s slowly cooking everyone and everything, the conscience of the world has been shaken. The main culprit seems to be fossil fuels. Electric plug-in and hybrid cars are a...

Is China Still the Clear Favorite in the Global Market?

Tue, 27 Oct 2009 17:55:00 +0000

China’s economy once appeared unstoppable. Posting a growth rate of 6.1-7.9% during the second quarter of 2009, China not only remained economically stable during one of the worst parts of the global recession, but it remained profitable (read...

China Keeps on Truckin’

Thu, 22 Oct 2009 17:30:00 +0000

One could say that the amount of small trucks on a nation’s roads is directly proportional to the relative prosperity of its people. This less-than-scientific proposition is not necessarily sustainable under scrutiny, but neither is it without... ...

The Sauerkraut-for-Clunkers Program

Tue, 20 Oct 2009 14:28:00 +0000

There’s something sour in Germany, and it’s not kraut. It’s the residue of its version of the cash-for-clunkers program. Germany was the first to come up with the program, with the U.S. and others following the model. In a study conducted by a... ...

The Iran Comedy Show - A Final Episode

Thu, 15 Oct 2009 15:26:01 +0000

Not to belabor the point about Iran’s global comedy show, but a final installment cannot be neglected. There is really nothing funny about the funny-business coming out of Iran. But the portrayal of this oil-rich nation as an economic developer... ...

A Bicycle Built for Two

Tue, 13 Oct 2009 15:46:02 +0000

In last Thursday’s installment of Iranian “Monkey business,” when we left our sad-sack, Middle East, finance-laden urban developers, they were departing the shores of Nicaragua rejected and repelled. The Homeric travelogue continues. This time...

Monkey Business, Iran Style

Thu, 08 Oct 2009 13:44:00 +0000

The story is so ridiculous it’s hard to know where to begin. It’s all about Iranian economic development abroad. One thing is for sure—it is Monkey business in the most literal terms. A story appeared on the front page of the Wall Street Journal... ...

Brazil Nuts at the G20

Tue, 15 Sep 2009 14:13:02 +0000

By all accounts the upcoming G20 meeting in Pittsburgh should be a little “nuts” – Brazil nuts, to be exact. That’s because the country’s colorful, interesting, and effective President, Luiz Inacio da Silva, will head the Brazilian delegation.... ...

What constitutes a good hedge fund?

Thu, 05 Nov 2009 01:31:00 +0000

We get frequent inquiries from clients about hedge funds. While for regulatory reasons we cannot discuss the funds we run, we can talk generally about hedge funds and why they are, for some investors, an investment choice that should be...

Did You “Sell in May and Go Away”? (Sorry if you did)

Thu, 05 Nov 2009 00:56:00 +0000

One of the most widely-touted market calendar myths is that you should “sell in May and go away.” This system apparently worked well from 1950 until 2004. The theory runs like this: Brokers love to enjoy the summer market doldrums at the beach...

Let’s Stop Celebrating Dismal Days - Here are Some Alternative Dates to Honor

Thu, 29 Oct 2009 00:00:00 +0000

“October is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” -- from “The Tragedy of Pudd’n’head Wilson” (1894) by Mark...

We’re Overdue for a Technological Miracle

Wed, 21 Oct 2009 20:41:02 +0000

Can you name one technological breakthrough of the 21st Century? (Don’t say “Internet.” It was almost fully active by the end of the 1990s.) We’re 98% deep into the first decade of the 21st century, but where is the first scientific “Eureka!”...

Can Gold and Stocks Rise Together?

Fri, 16 Oct 2009 05:39:00 +0000

The Dow regained its 10,000 benchmark, up over 55% since its March lows. Meanwhile, gold was consolidating its all-time highs above $1,060, having risen over 30% in the last nine months. In past decades, investors had assumed that these two...

Three Moments of Stark Terror

Thu, 08 Oct 2009 01:22:00 +0000

After last week’s column (“Budget Deficits Could Shrink Dramatically…), I received a thoughtful response which deserves an equally thoughtful answer. A principal of an asset management firm wrote: “Thank you for your weekly blogs. I enjoy... ...

Budget Deficits Could Shrink Dramatically, 2010-2015, Sending the Stock Market to New Record Highs

Thu, 01 Oct 2009 06:28:00 +0000

This is the transition week between two federal fiscal years. Fiscal 2009 ended yesterday, September 30, and fiscal year 2010 starts today. The final 2009 accounting won’t be available for a month or two, but the red ink for FY’09 could be...

While Everyone Fears the 1930s….the 1970s May Return

Thu, 24 Sep 2009 03:03:00 +0000

In nearly every article on trade wars or stock market history, we hear the words “Smoot Hawley” – that infamous 1930s trade bill that turned a routine market panic into a decade-long Depression. But so far, I haven’t seen anyone cite the...

Merger activity may be on the rebound

Tue, 22 Sep 2009 20:05:00 +0000

While many debate the longevity of the current market rally from the March 9th lows, merger activity may be a wildcard in supporting or boosting market performance in coming months. Bloomberg reports that the current corporate cash and...

The Mob Got it Wrong …. Once Again

Wed, 16 Sep 2009 13:58:01 +0000

The average investor too often gets it wrong. You can’t blame the media, the government or Wall Street. We have to examine our own tendency toward fear and greed. We sell near bottoms, out of fear, and we load up on leverage...

Ultra-low Resource Utilization Limits the Federal Reserve

Fri, 06 Nov 2009 19:23:00 +0000

Resource utilization (industrial capacity utilization plus the employment rate) is bouncing off a quarter century low. However, as Yardeni Research points out, such a low utilization rate may act to limit the ability of the Fed should they... ...

Are deficits pushing gold prices?

Thu, 05 Nov 2009 20:15:00 +0000

With the notable exception of the early 1980’s price spike, gold appears to have a reasonably strong relationship to the U.S. budget deficit. While it can be argued that there are many factors that influence the price of the gold, the...

Painful losses can require steep gains to break even

Wed, 04 Nov 2009 19:52:00 +0000

The importance of preserving capital in a market downdraft is vividly illustrated in the graph below. The greater the downside, the greater the return requirements to break even. While some might not appreciate the ever increasing...

Silver is Sparkling

Wed, 21 Oct 2009 19:12:00 +0000

With all the financial media attention focusing on the recent price action of gold, silver has actually been a superior performer in 2009. The 55% return for silver is more than double the percentage return of gold so far this year. ... ...

Mean Reversion May Benefit High Quality Stocks

Fri, 16 Oct 2009 18:58:00 +0000

For much of 2009 low quality stocks have been among the best market performers. Obviously such a market anomaly is particularly frustrating for money managers (such as Navellier) who concentrate on identifying stocks that have exceptional... ...

Risk/Return and Efficient Market Theory

Tue, 13 Oct 2009 18:31:00 +0000

Recently market researcher Ned Davis made the observation that over the past ten years the risk (as measured by standard deviation) of owning gold or stocks is about the same. However, the returns are dramatically different (negative for... ...

Retails Sales on the Mend

Thu, 08 Oct 2009 20:13:00 +0000

The recent positive news on retail sales was greeted enthusiastically by the stock market. Given that consumers accounts for roughly two-thirds of U.S. economic activity, retails sales is a valuable indicator of consumer behavior. ...

CFOs Economic Optimism at Five Year high

Mon, 28 Sep 2009 19:31:00 +0000

Ned Davis Research recently updated a business outlook survey of chief financial officers that was conducted by Duke University and CFO Magazine. Interestingly, compared to last quarter, the net number of CFOs who were optimistic as to the... ...

Playing with trade tariff fire

Tue, 22 Sep 2009 17:11:00 +0000

President Obama recently decided to place a 35% tariff on tires manufactured in China. This action was reported to be at the request of the United Steelworkers union. In response, China is reviewing U.S. subsidy polices with respect...

Debt “Bombs Away”

Tue, 15 Sep 2009 17:35:00 +0000

The United States is on track for a record budget deficit in fiscal year 2009. In fact, it will easily triple the fiscal 2008 budget deficit of $459 billion. Many analysts expect the deficit to surpass $1 trillion for fiscal 2010 as... ...