Navellier Growth: your source for market-beating growth stocks

Last week, I told you that the stock market had gone crazy. Well, that craziness seems to be contagious. Yesterday, the Federal Reserve cut interest rates by another 0.5%, and the stock market responded…how? With one giant yawn!

We got a decent rally today, but I think most traders are already focused on Sunday's game. Vegas likes the Pats (by 12-1/2 points), but all the traders I know are Giants fans. No one, it seems, is betting on Ben Bernanke. In just eight days, he's slashed rates by 1.25%, and the market still isn't happy.

At this rate, they'll soon be giving money away. In fact, Wal-Mart has already cut its rates to 0%.  The retailer said it is "charging no interest for 18 months on purchases of $250 or more with a Wal-Mart credit card." Perhaps we should move the Fed to Arkansas.

This looks to be the worst January for stocks on record. I know these are confusing times for investors, so this week, I want to help guide you through the fog covering Wall Street.

The Ag Chemicals Boom

If you're a regular reader of "What's Working on Wall Street Now," I'm sure you've heard me talk about the seismic shift on Wall Street. I'm specifically referring to the money that's poured out of value stocks and gone into growth stocks. This is probably the biggest underreported story of the past few months—and this style shift has only escalated as the credit crisis has worsened. 

The good news for us is that our Emerging Growth stocks have been major beneficiaries of the shift toward growth stocks. I'll give you a great example. We've been making huge profits in the sector of agricultural chemicals. Boring, right. Hardly! In the last five months, one of my favorite ag stocks in Emerging Growth has doubled. That's right, 100% in just five months. Compare that with a "new economy" stock like Yahoo that's plunged. If that's the new economy, count me out!

I'm currently working on the February issue of Emerging Growth, and it will be sent out to subscribers tomorrow. I have to be honest with you, I'm very excited for this issue, and I want all individual investors to read what I have to say this month. In it, I'm going to feature my Top 10 stocks to buy right now. You need to sign up to read the whole thing, but I'll give you a sneak preview. The Top 3 stocks are all ag chemical stocks. That's how strongly I feel about this sector.

You can sign up now to receive one full year of Emerging Growth for $995. Or you can get a three-month trial offer for just $295. Remember, our track record is the gold standard in the industry. Since 1985, our legendary Buy List has multiplied investors' wealth by more than 50-fold. We've lapped the overall market, not once, not twice, but three times. And we're close to a fourth! I hope you join us today.

Don't Blindly Chase Dividends

As for our markets, there's already plenty of cash to fuel a rally. Based on the latest data, money market funds now represent 22% of the value of the Wilshire 5000. You have to go back to March 2003 to find similar cash levels. But before the rally can begin, we need investor confidence to improve.

Some investors are now attracted to the big dividend yields at stocks like Bank of America and Wachovia. Do not blindly follow high dividends. This is very dangerous. Many of these banks will soon cut their dividends as a result of their large mortgage losses. Already, Citigroup, Freddie Mac, MBIA and Washington Mutual have all slashed their dividends. This is a warning sign that it can be futile to chase big dividend yields at financial stocks with excessive mortgage exposure. 

If you're looking for a big fat dividend yield, I have better alternatives in my Emerging Growth newsletter. For example, Terra Nitrogen (TNH) is an Iowa-based ag chemical stock, and it currently yields nearly 6%.

Buying value stocks right now, especially financials, is very dangerous.  Remember: When the Fed cuts interest rates, growth stocks have historically beaten value stocks. Knowing this will set you apart from the average investor who has no idea what to do when the Fed makes a policy change. This is all part of our strategy at Emerging Growth that has given us a market edge for nearly 30 years.

We're now in an incredible buying opportunity. Historically, the stock market heats up just before the national political conventions. Also, the Fed seems to be focused on keeping the "pump primed" heading into November. There's no doubt that the Fed is trying to help the economy.

Please remember to not be tempted by rich dividend yields. There will be more mortgage losses in the months ahead. Focus on growth sectors like agricultural chemicals instead. I'll have more for you in next week's "What's Working on Wall Street Now."

Sincerely,

Louis Navellier

P.S. I'll be sending you next week's issue from the World Money Show in Orlando, Florida.  With the market as it is, it should prove to be an exciting show.  Attendance is free for investors. I hope to see you there.