Friday's Decline Began with Brexit, then Fell Further on Virus Fears

Excerpt from Louis Navellier's Marketmail - 02/04/2020

The market closed January with mixed results. Thanks to Friday’s 603-point decline, the Dow dropped 2.53%, while NASDAQ gained 1.99%. The S&P 500 was flat (a -0.16% decline), gaining 3% in the first half of the month, then losing those gains in the second half. Some big flagship stocks reported better-than-expected sales and earnings last week, including Apple, Microsoft, and Tesla. This is good for the stock market. Facebook also reported market-beating results, but many analysts did not like its guidance.

Navellier & Associates owns AAPL, MSFT, and FB, in some managed accounts and or sub-advised mutual fund but does not own TSLA. Louis Navellier and his family own AAPL in personal accounts and but they do not own TSLA, MSFT, or FB.

I’ll have more on Tesla later, but the big news last week was the continuing collapse of interest rates that briefly caused the Treasury yield curve to invert. This interest rate collapse began in continental Europe, which is still smarting from Brexit finally happening – as well as a lack of confidence in the European Central Bank (ECB). Furthermore, as coronavirus fears have spread, emerging markets took a big hit.

Here is a link to my podcast on coronavirus. Then, on Friday, I recorded a second podcast. In addition, our other analysts cover other angles: Bryan Perrylooks at the latest bond yield decline to examine three high-tech REITs for dividend growth and capital appreciation. Gary Alexander takes a long-term view of peace and prosperity since World II, showing how peace (not war) clearly boosts markets more. Ivan Martchev is watching the price of oil, copper, and other industrial commodities for clues to China’s fate, while Jason Bodner called this correction a month ago and is now examining the optimum re-entry point.

In This Issue:

A Look Ahead

By Louis Navellier

A Deeper Dive into Tesla's Quarterly Report

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Income Mail

By Bryan Perry

High-Tech Income Looks Terrific Right Now

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Growth Mail

By Gary Alexander

Ending the Scourge of the Four Horsemen