On Tuesday, March 16, 2010, Lenny and Robin Lipari, Craig and Nancy Landry, and David Brady of Action Specialties, LLC attended a market outlook presentation hosted by DSF Wealth Management, LLC at Café’ Vermillionville in Lafayette.The guest speaker was Louis Navellier, Chairman of the Board, Chief Executive Officer, and Chief Investment Officer of Navellier & Associates, Inc., a premier money management firm advising individual and institutional clients for more than 20 years.Mr. Navellier has made appearances on CNBC, Bloomberg, The Nightly Business Report, and Wall Street Week, as well as being featured in Barron’s, Forbes, Fortune, Investor’s Business Daily, Money, Smart Money, and The Wall Street Journal.
While there are still some economic hurdles to overcome in 2010, Mr. Navellier is still optimistic about his market outlook for 2010.Fourth quarter 2009 corporate earnings were the strongest in decades and expected to remain strong through 2010. Investments in bonds increased in 2009.Low quality stocks began showing growth in the later part of 2009.This has historically been a signal of upcoming growth in high quality stocks.In 2009, inventories were depleted to historically low levels.In 2010, these inventories must be replaced.Inventory rebuilding alone should maintain the gross domestic product (GDP) at least at a 3% growth rate.Because oil is traded in U.S. dollars, the weak dollar makes oil an attractive investment to foreign investors, and should also help boost corporate profits of multi-national stocks and make the U.S. more globally competitive.As long as these factors continue, the job market should begin to improve which will bolster the improvement in consumer confidence.
It is important for the Fed to keep rates low to maintain financial stability and repair the damage done by the recent recession.If that continues, Mr. Navellier is excited about the market growth expected in high quality stocks.
