Well, folks, it looks like the two-week ceasefire that started last week is already falling apart.
This morning, President Trump ordered the U.S. Navy to blockade the Strait of Hormuz after peace talks with Iran failed to produce results over the weekend.
The ultimate goal is to increase pressure on Iran to reopen the critical oil route. But the announcement sent crude oil prices surging above $100 per barrel, reigniting concerns about inflation and global economic growth.
So, I understand if some of you are feeling frozen right now. But believe it or not, there is an opportunity here.
In this week’s Navellier ÃÛÌÒ´«Ã½ Buzz, I talk about three energy stocks that are positioned to win in this chaotic environment, along with my top pick out of the three. I also explain how the oil crisis is dragging down economic growth and preview upcoming earnings as the first-quarter earnings season kicks off this week.
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Where the Next Opportunity Is Now
While the headlines may be full of geopolitical drama, that’s not the real story right now.
The real story is earnings.
I’ve always said that our best defense in chaotic times is a strong offense of fundamentally superior stocks.
That’s especially important now.
According to FactSet, S&P 500 earnings are expected to grow 12.6% this quarter, and could come in as high as 19%.
But if you’re banking on the Big Tech names to deliver the goods for your portfolio this earnings season, that could be a mistake.
Most investors remain heavily concentrated in Big Tech names, which could become a problem if they release disappointing results.
And if market leadership is shifting like I think it is, it could be an even bigger problem…
When these major tech names no longer lead the pack, that kind of concentration often leads to small or even flat returns.
In a recent presentation, I explained how leadership may be changing and where I’m seeing stronger growth opportunities.
In fact, I identified five stocks in my portfolio that I call “Edge Innovators” – and I believe they could emerge as the market’s next leaders.
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Sincerely,
Louis Navellier
