Navellier Growth: your source for market-beating growth stocks

I have to admit that I sympathize with Bertrand Des Pallieres. In case you're not familiar with Mr. Des Pallieres, he's a London-based hedge fund manager who had his $160,000 Maserati Cambiocorsa impounded because he neglected to pay thousands of pounds in parking tickets.

Gee, that's a tough break, but the thing was, Des Pallieres didn't realize his car was missing for three months! He just forgot about it. But it was Pallieres' excuse that caught my attention:

"I was distracted by the market turmoil."

Yep, the stock market has a lot of folks on edge lately. Jim Cramer is screaming (even more than usual). The Fed just lowered its discount rate. The Europeans are injecting gobs of cash into their market. Heck, even Donald Trump is getting in on the drama by calling for the Fed to cut rates by a full percentage point.

So you can see why a fellow might not notice a growing mound of parking tickets on his windshield.

Consider that in the last six months, the Dow has closed up or down 280 or more points six times. In the three years prior, the Dow has never done that. Not once. What's more, the Dow is becoming even more erratic. Five of those six big swings have come in the last six weeks.

Fortunately, I consider myself a calm fellow (especially in comparison to Trump and Cramer), but I must admit that this market has gotten me tremendously excited too, only in a very upbeat way. Unlike our friends Messrs. Trump, Des Pallieres, and Cramer, what has me wound up are all of the great opportunities I'm seeing right now. In fact, there are several stocks on my buy lists that have the potential of making you 40% richer by the end of the year. How could I not be thrilled and sitting at the very edge of my seat in anticipation of days to come?

You may recall that last week I discussed why a stock's fundamentals are so important and how this fact should be the focus of your investment strategy. This week, however, I want to show you how I pinpoint key areas of the market for specific profit opportunities. I'll give you a perfect example of the kinds of stocks and sectors I'm talking about. One area of the market that looks especially attractive right now are the sectors that cater to Baby Boomers.  

Not only are Baby Boomers a huge demographic—there are 76 million of us—but they're also largely unaffected by the subprime mess that's rocking markets around the world. Think about it Baby Boomers are folks who've already paid off their mortgages and have disposable money that they're ready to spend. These are the people who weren't targeted with "no interest loans."

One of my favorite Baby Boomer stocks right now is Stryker (SYK), which I currently recommend in my Blue Chip Growth service. Stryker is one of the world's leading orthopedic companies. The company is an expert at making all those knee and hip replacements that we Boomers need to repair our aging bodies.

We may be feeling the aches and pains of growing older, but we're also still very active and that's what being a Baby Boomer is all about. That also helps explain why Stryker has been one of the most spectacular stocks of the last generation. Since 1979, shares of SYK have gone from about seven cents to nearly $70—that's a 1,000-fold increase! You can see there's a huge profit opportunity in this sector.

Make no mistake, Stryker isn't done yet. The company had another excellent earnings report on the exact same day that the stock market peaked. And yet, Stryker's stock is down with everyone else. This makes no sense to me, but this is Wall Street's "shoot first, ask questions later" mentality. It won't last long, however.

Stryker is due to report earnings again in October, and I'm expecting another blowout earnings report. Stryker is growing its earnings-per-share by over 20%, yet the shares are well off their high point. Right now, I rate Stryker as a buy anytime the stock is below $72 a share.

Another great Baby Boomer stock to pour money into is InterContinental Exchange (ICE), also located on our Blue Chip buy list. As someone who's been a professional investor for 30 years, I can tell you that the revolution in personal finance is one of the most stunning developments I've witnessed. The Old Guard on Wall Street is crumbling all around us, and there are fortunes waiting to be made. I'm amazed that this story hasn't received the kind of press coverage it deserves.

ICE is at the center of this revolution. The company is one of the world's leading electronic marketplaces for trading futures and energy contracts. With the surge in energy prices, ICE has made a windfall. The company went public less than two years ago and it's already upending the old order. Earlier this year, ICE bought out the New York Board of Trade. That's a firm that dates back over 130 years, and it was taken over by a company that's just a child in comparison. Don't expect these takeovers to slow down though; in fact, ICE nabbed the Winnipeg Commodity Exchange yesterday. This is one of those stories that people will be kicking themselves for missing. ICE is a great buy below $147.

Next week, we'll get an important report on the second-quarter GDP, plus a report on the core PCE, which is the Fed's favorite inflation gauge. My bet is that the Fed will cut rates at its next meeting on September 18. Plus, I think there will be another rate cut in October. Combined with the strong earnings environment, this could send Wall Street soaring. For now, I recommend focusing on strong niche plays like Stryker and ICE.

I'll have more for you in next week's "What's Working on Wall Street Now."

Sincerely,

Louis Navellier

P.S. Stryker (SYK) and InterContinental Exchange (ICE) are Blue Chip Growth stocks set to profit from the "Baby Boomer" market and help you become 40% richer by the end of the year.  I'm recommending a number of other sector bets that are positioned for big profits this year — all the details are in the just-released September issue of Blue Chip Growth.