To view this email as a web page, go [here.]( [Power Trends] The Data Confirms It: You Need to Be Ready for This
Editorâs Note: Iâve talked to you before about the record amounts of cash sitting on the sidelines. In fact, I just updated my Quantum Edge Pro readers about it today. Some estimates are as high as $8.8 trillion. When we add cash-like securities to the Federal Reserveâs data showing $6.4 trillion in money market funds, itâs entirely believable. This tells me a) that a lot of investors have missed out on big profits, and b) there are huge opportunities ahead as that cash flows back into stocks. Iâm not the only one who sees this. Louis Navellier also sees it. If youâre not familiar with Louis, he is a legendary quant investor whom I admire, consider a mentor and friend, and continue to meet with weekly. He and I like nothing more than geeking out over numbers... and one number that has blown us both out of the water is that mountain-sized chunk of cash. Today, I want to let Louis share some of his insights on what he and I are calling the âcash bubbleâ... Iâve been in the investing game since the late 1970s, and I have made several big predictions that came true during my 40-plus investing career. Here are a few examples...
- The market collapse of â87
- The dot-com bubble burst
- The 2008 Financial Crisis
- The rise of the longest bull market in stock market history â just 10 days before it began
Today Iâm sharing another big prediction with you: That $6 trillion cash bubble Jason mentioned is poised to burst. And when this happens, it will inject a flashflood of capital into the market â especially one small corner of the market. And the reality is, most investors wonât grasp the full impact of whatâs about to happen until itâs far too late, especially those with a decent chunk of money on the sidelines. This shift has been brewing for a few years, but itâs only now about to hit its tipping point in the next few months as interest rates come down. And when it does, many could see their wealth evaporate. But thatâs just one side of the coin. On the other side, wealth will be transferred to those who are âin the know.â I saw the writing on the wall the last time this happened and recommended a string of small-cap stocks that turned out to be the famous FAANG stocks â Meta Platforms, Inc. (META), Amazon.com, Inc. (AMZN), Apple Inc. (AAPL), Netflix, Inc. (NFLX), and Alphabet Inc. (GOOG). So, what led me to recommend these stocks? RECOMMENDED LINK [Charlie Shrem: âThe Crypto Melt-Up has begun.â](
Crypto pioneer Charlie Shrem says a massive Melt-Up in crypto has begun. It could drive Bitcoin to $1 million. History shows that smaller altcoins could soar as high as 134X, 646X, or more. [Click here to find out which five coins Charlie thinks you should buy right now](. My Breakthrough Stock-Picking System
It all boils down to a breakthrough stock-picking system I developed 40 years ago... Back in college at Cal State Hayward in the late â70s, everyone believed it was impossible to beat the market without taking on excessive risk.â âSure,â many said, âsome traders can be lucky for a while, but no one can consistently beat the market.â At that time, most investors were content to invest in index funds like the S&P 500. Thankfully, I was taught by a group of open-minded professors who offered me the investing chance of a lifetime. They gave me unprecedented access to Wells Fargoâs mainframe computers to build my very own stock selection models. This was before laptops, so this was a tremendous privilege. With only a calculator and limited access to the computers, I actually started my first newsletter in my dorm room at school. I spent countless hours learning how to read and research market data, and I built a stock selection model designed to mirror the S&P 500. I worked like an investigator who had to re-enact the crime, generating the precise conditions of the S&P â the same level of risk as the index and the same industry weighting as the index. But things didnât turn out as I planned. When I ran the model, my returns came out considerably better than the S&P 500! I was stunned by such results â and naturally determined to get to the root of what happened. What I found was that a select group of stocks consistently outperformed the S&P in my model. These were smaller, supercharged companies that all had certain factors in common.
- Increasing Sales Growth
- Expanding Operating Margins
- Earnings Growth
- Positive Earnings Momentum
- Positive Earnings Surprises
- Positive Earnings Revisions
- Free Cash Flow
- Return on Equity
My quant system runs a score on these eight parameters, every week, for more than 6,000 stocks. From there, Iâm able to analyze the data at a glance. The most important factors to me are sales growth and earnings growth. Out of all eight fundamental factors, those are the keys. How to Be an âIn the Knowâ Investor
As a regular reader of Jason Bodnerâs Power Trends, you already know the importance of quantitative analysis and high-powered systems that analyze the right data the right way. Itâs all about the highest probability of making money. If you want to make sure youâre on the right side of this wealth transfer, then be sure to attend my Emergency Bubble Briefing on Wednesday, March 13, at 1 p.m. Eastern time. ([You can reserve your spot now simply by clicking here]( During this briefing, Iâll review:
- The cash bubble and what it means for investors.
- My investing gameplan.
- And Iâll share the name of a stock thatâs poised to benefit â absolutely free.
[Just click here now to reserve your spot so you donât miss out](. What I share during this Emergency Bubble Briefing could help you build an entire retirement nest egg with just a few small moves. Sincerely, [Louis Navellier]Louis Navellier P.S. Jason here again. Iâll be back tomorrow with the next edition of Power Trends+, our new video issue where we analyze stocks and the market. Get Instant Access
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