Navellier Growth: your source for market-beating growth stocks

 

What do you think the prognosis is for the stock market in 2008?

From 1999 through 2006, value stocks led the overall market. But in 2007, a major "seismic shift" occurred as institutional investors moved their money away from value strategies and put it into growth stocks. Of course, my readers and I were perfectly positioned to profit.

Those investors who are plugged into the market's strongest sectors will see profits regardless of what the rest of the market does in 2008. However I do expect that the overall market will narrow, and the number of stocks leading the market will get smaller and smaller. We’ll also see the seismic rotation out of value stocks and into growth stocks continue.

In addition, I expect to see the Federal Reserve continue to cut interest rates in 2008. The Fed doesn’t like to fight the market and the Fed Funds rate is still well above market interest rates (as determined by the 3-Month Treasury bill).

The final aspect about 2008 is that it’s an election year, which are historically good for the stock market. Politicians like to keep voters happy—especially when they go to the polls.

Q&A Archive

• Q&A on Investing the Navellier Growth Way
• Q&A on Today's Market
• Q&A on Specific Stocks