Well, the second quarter is over and the talking heads can't stop yapping about how horrible the year has been so far. Although it's true June was a down month, that doesn't mean everybody lost their shirt on the stock market. In fact, the second quarter was great for our Navellier family of portfolios. And it's all because growth investing is winning out over value investing as financial stocks continue to drag down Wall Street.
What is the difference between "value" and "growth" investing, and why is one better right now? Simply put, value investing is hunting for a stock that's a bargain because Wall Street has undervalued it. Growth investing, on the other hand, is putting your money behind companies that grow faster than the rest of their sector and the market in general, resulting in skyrocketing stock prices. (For a more detailed description of these strategies and other terms, check out my free investment glossary here at www.NavellierGrowth.com).
As a longtime growth investor, I'm very optimistic we will continue to substantially outperform value investors in 2008 and over the next few years. The problem with value investing right now is that so many companies are doing poorly, it's difficult to see who's a bargain and who's on the verge of collapse. Badly beaten companies in the aerospace, automotive and financial sectors are trading at historic lows, but that doesn't mean you should buy in and expect to profit from a turnaround! Companies like General Motors (GM) or Citigroup (C) are going to be down and out for a long time.
The bottom line is that growth investing has shifted front-and-center. My Blue Chip Growth, Emerging Growth, Global Growth and Quantum Growth services are all performing substantially better than the S&P and the Dow. And as we look forward to the second-quarter earnings announcement season that commences in mid-July, we'll really see our portfolios shine!
Here's why: as apprehension grips Wall Street and analysts continue to lower second-quarter earnings estimates, a great opportunity emerges for growth investors like me. Conservative estimates are easier to beat with fundamentally superior stocks, and our outstanding companies are poised to blow Wall Street's predictions out of the water. Navellier growth portfolios will likely post anywhere from 40% to almost 100% surprises on earnings and sales! And you know what happens after you beat analyst expectations? The stock goes up, up, UP! Since we invest before the good news, we're prepared to ride these high-performing stocks all the way to the top of the market.
If you're wondering, "How do you know which stocks will grow?" The answer is simple: The numbers don't lie. I dissect more than 5,000 companies every week based on earnings, sales, operating margin, past earnings surprises, and other fundamental factors. Then, I select only the crème de la crème across all these categories for my portfolios. You can see for yourself how this works by checking out my free PortfolioGrader Pro tool. All you have to do is sign up and use it to rank your own stocks at no cost, and with no commitment to buy anything from me!
How does your portfolio rank? If you get less than an "A" for every stock, there's much to be desired. Take my Blue Chip Growth portfolio, a large-cap investment service that has beat the market 4.7-to-1 for the past 10.5 years. Some stocks have doubled in value in the past three months despite the current market slump that included the worst June since the Great Depression! Take National Oilwell Varco (NAV), which is up to date more than 60% from the end of March! That is the kind of exemplary growth I'm talking about. There are many more companies like this, but you'll have to join Blue Chip Growth to find out what they are!
Don't sift through the bottom of the barrel with value investing. Now is the time for growth, and you can get in on the ground floor of tomorrow's market leaders today! Just sign up for my Blue Chip Growth service and watch as our Buy List soars to new heights this earnings season. But remember, the window to cash in on earnings reports is brief: it opens in July and closes in August. So don't delay or you'll miss out!
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| Video Demo |
| Stock | Symbol | Grade | |
|---|---|---|---|
| Continental Ai | CAL | C | HOLD |
| General Electr | GE | D | SELL |
| Goldman Sachs | GS | B | BUY |
| Hewlett-Packar | HPQ | B | BUY |
| Honda Motor Co | HMC | B | BUY |
| Starbucks Corp | SBUX | D | SELL |
| Suncor Energy | SU | B | BUY |
| Stock | Symbol | Grade | |
|---|---|---|---|
| Baidu.com Inc. | BIDU | A | BUY |
| Google Inc. (C | GOOG | B | BUY |
| Netease.com In | NTES | A | BUY |
| SINA Corp. | SINA | B | BUY |
| Sohu.com Inc. | SOHU | A | BUY |
| Time Warner In | TWX | C | HOLD |
| Yahoo! Inc. | YHOO | C | HOLD |







