More Articles | Free Reports | Premium Services By Louis Navellier, Editor, Breakthrough Stocks Dictionary.com defines distraction in two ways: 1) “A thing that prevents someone from giving full attention to something else.” 2) “Extreme agitation of the mind or emotions.” Both clearly represent what’s happening on Wall Street regularly these days. Last week, the market wasn’t happy with Wednesday morning’s inflation report. The latest Consumer Price Index (CPI) data showed prices rose 0.5% in January over the previous month, compared with economists’ expectations for a 0.3% increase. It was the largest monthly increase since August 2023 and was up from the 0.4% rise in December. And before that, investors reacted emotionally to the DeepSeek AI drama and President Trump’s trade tariff threats. Fears about artificial intelligence not requiring as much computing power and concerns that increased tariffs on America’s two biggest trading partners could ignite inflation blocked out all rational thought. During all three rounds of distraction, investors’ knee-jerk reactions drove the major indices sharply lower… before they regrouped. Folks, this is a good time to remind you that Wall Street is a manic crowd – and crowds tend to “react” first and “think” later. Now, I could tell you that when volatility hits, you should “stay calm” or “ignore the noise.” But I realize words aren’t enough. We’re emotional beings… We need strategies for when we get distracted. So, today, I want to lay out the two-part strategy I use to stay focused on what matters… and to make profits while doing so. I’ll also show you where and how I put these two moves to use – and where you can, too. Let’s get started… Recommended Link | | He’s been out in front every step of the AI boom. From calling an AI data center stock before it jumped 112%, to recommending an AI server stock before it climbed as high as 1,900%, to nailing an AI chip stock before it surged 37,000% for those who held on, Louis Navellier has been on fire. And yet, today, Louis believes a new era of AI is underway, and the gains will DWARF what’s come before. In fact, he’s identified 7 under-the-radar AI stocks with 10-bagger potential. Go here now for the full story. | | | The “Trump Two-Step” – and other Distractions The reality is that fears over DeepSeek, tariffs, and inflation are vastly overblown. It appears that the AI that DeepSeek uses may simply optimize various packets of data, which wouldn’t use a lot of computing power. However, other kinds of machine learning use a lot more computing power. That’s why more data centers and an enhanced electrical grid are still necessary. With more folks starting to understand this, AI-related stocks are firming back up, especially in the wake of positive quarterly results from market leaders. Meanwhile, fears surrounding the Trump 2.0 tariffs were mostly squashed within a day of their announcement. Trump’s threats of implementing 25% tariffs on the U.S.’s two biggest trading partners, Canada and Mexico, seemed to be a negotiating tactic. After conversations with both Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, he got some major promises to significantly increase border security. The president did what some are now referring to as the “Trump Two-Step,” providing both countries with a 30-day extension. I bring all this up not only to point out the major distractions that hit Wall Street… but also to show you the two strategies I use to stay focused on the job at hand: making money. Here’s how I do it… The “Navellier Two-Step” First and foremost, our best defense against distraction remains a strong offense of fundamentally superior stocks. That’s why, instead of using my gut to pick stocks or trusting what companies say in their annual reports, I study data on almost 6,000 stocks every week and use my proprietary algorithm to run the stocks through eight filters. These eight factors – fed into my Stock Grader system – sort stocks with no alpha from stocks with good alpha from stocks with super alpha. Think of “alpha” as the stock’s speed compared to the general market… how much better does it perform than expected. If it has a high alpha, that means it’s doing better than the market. If it has a low alpha, it’s doing worse than the market. Unfortunately, most people can never find “alpha” until long after the stocks have taken off. But, if you have an accurate way of finding “super alpha” – as my Stock Grader model does – you can often spot bull markets and manias long before they develop. The second part of the “Navellier Two-Step” is to invest in the bull markets and manias – the predominant trends – for as long as you can. The reality is that there are a handful of trends currently in play and/or developing that could significantly boost fundamentally superior, high-alpha stocks more this year. We all know that Trump 2.0 and his pro-business administration aims to trigger an economic resurgence. He’ll do so through slashing regulations, shrinking the size of the federal government, lowering taxes… and even those tariffs the market hates. Like them or not, I suspect President Trump is using them to push more U.S. companies to “onshore” their manufacturing operations. The fact is that President Trump wants to end the more than two-year manufacturing recession in the U.S. and reignite overall economic growth. So, if the tariff situation plays out in Trump’s favor, and a lot of companies onshore their operations in the upcoming months, it could trigger an economic resurgence. And President Trump will go down in history as a great leader. But Trump 2.0 isn’t the only predominant trend out there… From “Cool Tool” to Crucial Tech We all know the global AI race is on – and that it’s already created many new millionaires and billionaires – but what a lot of folks don’t know is that we’re standing at the precipice of what I call “AI’s Crossover Moment.” This is the point where AI stops being a “cool tool” and starts actively transforming industries, infrastructure, and daily life. Explosive gains in speed and processing power are colliding with breakthroughs in data deployment, unlocking capabilities that, just months ago, felt like pure science fiction. How big is this? Well, according to Nvidia CEO Jensen Huang, this crossover could amount to a $100 trillion opportunity. That checks out because, if history has taught us anything, it’s that the biggest booms don’t happen when a technology is first invented. They come when it moves from concept to real-world adoption. In my Breakthrough Stocks service, we dance this “Navellier Two-Step” all the time. We invest only in fundamentally superior stocks… and we invest only in high-alpha stocks benefiting from one of these two predominant trends. I’ve used this two-part strategy to give my followers a shot at recent gains as high as: -
112% on an AI data-center play… -
275% on an AI energy play… -
And 1,900% on an AI server play. All we need to do from here is keep placing our bets on fundamentally superior stocks benefiting from Trump 2.0 and/or AI’s Crossover Moment… and then hang on and watch our portfolios grow. To help you do that, I have recorded an urgent AI Crossover broadcast to explain what’s happening and how folks can play this predominant trend for an unprecedented wealth-building opportunity. Already, my system is lighting up seven AI Crossover plays, and I’ve issued Buys on each. Go here now to see this special free broadcast. And I look forward to being invited back here to talk with you again soon. Sincerely, |
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