Navellier Growth: your source for market-beating growth stocks

 

Hi Louis, at present I am just a little more concerned about the Energy and Metal sectors. There appears to be heavy selling in all of these. What are your thoughts?

This week was essentially a massive de-leveraging of many hedge fund bets in commodity and crude oil contracts. This was triggered by the fact that the Fed did not cut a full 1% on Tuesday, which signaled that they might actually care about the U.S. dollar. Additionally, the Fed opened its discount window for the first time to investment firms like Goldman Sachs (GS), so there was aggressive borrowing as these firms tried to shore up troubled markets with this latest infusion of liquidity.

Financial stocks rallied on short-covering and in my opinion, the sell-off in commodity and energy related stocks was just profit-taking. In fact, our commodity and energy related stocks will post stunning first quarter earnings in the upcoming weeks, so I am very optimistic that they will rebound shortly.

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