Last call for tonight with Louis Navellier… the top market headlines… how stocks have really performed for three decades… Jonathan Rose and Luke Lango agree about this drone maker
We begin with a reminder…
Tonight at 8 p.m. Eastern, legendary investor Louis Navellier is going live – and if you missed his recommendation to buy Nvidia almost 4,000% ago, he sees the possibility for similar gains today.
As a quick recap, Louis says that we’re less than two weeks away from the Trump administration revealing its brand new “grand strategy” involving AI, China, and a small group of stocks.
Louis believes a tiny handful of companies – less than 2% of the overall market – has the potential to produce Nvidia-like returns.
Here’s Louis:
The stocks I’m focused on are not AI companies. They’re the suppliers to the AI boom. They make essential materials for AI chips, batteries, robots, and data centers.
I’ve now been a professional investor for over four decades. I’ve seen this same strategy play out during the dot-com boom in 1990s, the internet infrastructure revamp in the 2000s, and the EV boom in the 2010s – all of which rewarded overlooked plays over headline tech names.
And because the stocks I’m targeting now are not AI stocks, they’re still trading for pocket change. And that’s the only way to potentially see 10x to 100x returns again.
Tonight at 8:00 p.m. Eastern, Louis will get into the details. He’ll even give away the name and ticker of one of these potential 100X winners.
You’re not too late. Just click here and you’ll instantly be registered to join Louis for all the details.
Quick market round-up
The stories are coming fast and furious these days. Here’s a brief tour through the headlines to make sure you’re in the know.
First, the tariff letters. President Trump has now sent out at least 21 letters to countries that are set to face steeper blanket tariffs on August 1 if trade deals aren’t reached.
As I write Wednesday, there are seven new ones: Philippines, Brunei, Moldova, Algeria, Iraq, Libya, and Sri Lanka. There could be more by the time you read this.
So far, the tariff rates for the 21 countries in Trump’s crosshairs range from 20% to 40%, though the letters include that the U.S. will “perhaps” bring down the tariff level “depending on our relationship with your Country.”
Meanwhile, copper prices are easing after surging yesterday in the wake of Trump saying he would impose a 50% tariff on imports of the metal.
Over in tech, this morning, NVIDIA broached the $4 trillion market cap, becoming the first to reach this milestone. It’s just more evidence of how the market is rewarding AI leadership.
Also worth noting: Treasury yields keep drifting lower – the 10-year Treasury yield is down to 4.35% as I write. Meanwhile, oil rallied yesterday on news that the Energy Information Administration forecasted that the U.S. will produce less oil this year than previously expected. West Texas Intermediate Crude is approaching $70 again.
And over in crypto, Bitcoin is trading above $111,000, flirting with setting a new all-time high.
We’ll dive into the details of some of these headlines later this week, but for now, consider yourself caught up.
A three-decade “sucker’s” bull market – and what to do about it
If you’d invested in the S&P 500 30 years ago, you’d be up more than 1,000%.
Source: StockCharts.com
Amazing, right?
But let’s view this from a different angle with very important implications for your wealth.
When we think about the price, we think about the value of an object or asset – for our example, let’s say gold – manifested in dollars.
When the price of gold changes, the unspoken implication is that what’s changing is the inherent value of the gold. The dollar is the sturdy, fixed point in this comparison. The North Star.
But let’s switch this…
What if gold was the asset maintaining its value? What if it was the North Star?
Well, that would mean that what appeared to be a rising gold price was actually a decline in the value of the dollar.
Now, imagine you measured your stock portfolio in gold, the storehouse of value for thousands of years – instead of dollars.
What would that look like?
To find out, let’s return to that 1,000%+ return for the S&P 500 over the last 30 years
I want you to take a guess…
If we substitute gold as our new fixed point of reference instead of the dollar, how much has the S&P returned in three decades?
Now, I’m going to tweak our timeline so that it ends at the recent Liberation Day panic selloff. I’m doing this for dramatic effect. I’ll give you the full up-to-date return in a moment.
So, what’s your guess?
How much has the S&P returned in gold over the last 30 years?
Congratulations if you said “4%.”
Source: StockCharts.com
And don’t forget how the average investor woefully underperforms the market year in, year out. In other words, the average investor has likely made no real stock market gains relative to gold in 30 years.
If we extend our timeline from July 10, 1995 (July 9 was a Sunday) to today, the return bumps up to 31%. Still, that’s nowhere near the 1,000%+ return when measured in the greenback.
The dollar is the real “fool’s gold.”
Adding insult to injury, the dollar just notched its worst first-half return in 52 years
It fell nearly 11% against a basket of global currencies.
Source: TradingView
You have to go back to 1973 to find an equally bad performance.
And there’s little reason to think this will change as we get into the back half of the year. Sure, we’re due for an oversold rally, but there appears to be little fuel to drive a sustained bullish move.
For one, Washington just passed another “Big Beautiful” spending bill – a fiscal boondoggle that only adds to the nation’s already massive deficit problem. That kind of unchecked government spending isn’t doing the greenback any favors.
Then there’s the Fed…
While they’ve been dragging their feet on rate cuts, odds still favor two quarter-point rate cuts before year end.
Now, consider how foreign central banks – from the ECB, to the BoE, and beyond – have been cutting rates all year, while the Fed has been on hold. That should have helped the dollar, at least on a relative basis. And yet, the greenback has still been sucking wind.
So, what happens when the Fed actually starts cutting?
Add in persistent risk-on behavior in the markets with money flowing into equities, emerging markets, and crypto, and the case for a meaningful dollar rebound gets even weaker.
Bottom line: unless there’s a sudden flight to safety or opportunistic mean-reversion forex trading, the dollar will likely limp into year-end. It’s yet another reason to get your money out of the dollar and into high-quality assets:
- Stocks with pricing power
- Gold/silver
- Well-positioned rental real estate
- Bitcoin/digital assets
Remember – keeping your wealth in dollar savings accounts always feels safer during volatility, but over the long-term, it’s the real wealth killer.
One stock that’s vastly outpacing inflation/dollar weakness today
Here at InvestorPlace, we’re thrilled to feature some of our industry’s brightest, most successful analysts. That’s why when two of them have flagged the same opportunity, we pay close attention.
Today, Jonathan Rose and Luke Lango have spotlighted drones – what Jonathan calls “one of the year’s biggest investing trends [that’s] flying under most investors’ radars.”
Here’s Jonathan:
Back in December 2024, I called out three major stock market trends for 2025.
I showed you one of the biggest trends really gaining momentum this year – drone stocks.
Military budgets are pouring into drones like never before.
The Trump administration just made drone development a top national defense priority. Plus, drones are getting smarter with AI integration, edge computing – and they’re way more energy-efficient than traditional tanks and aircraft.
This hits all the growth areas I’ve been watching closely.
Drones have been massively undervalued for years. But the markets are finally catching up to what I’ve been seeing all along.
Smart analysts and big institutions are positioning themselves now – before everyone else figures it out. We’re looking at what I call a “pre-pricing moment.”
Now, the specific drone maker that Jonathan highlights is the same one that Luke Lango put his Breakout Trader subscribers in two years ago – and they’re now up 208%…
Kratos Defense & Security Solutions Inc (KTOS).
Despite that triple-digit return, Luke sees higher prices coming for KTOS. From yesterday’s issue of Breakout Trader:
Our RSI is at 60, so healthy but not overbought… our MACD is elevated but not overly stretched… our MAs are waterfalling exactly as we like to see… and our price action is picture perfect with its series of “higher lows” and “higher highs.” Everything here says “bullish.”
So, what do we do with our winners? Traders who have been with us for a long time know the answer…
We let ‘em run.
Stay long KTOS.
Luke and Jonathan remain bullish on KTOS, but that’s not your only option if you want to get in now
In yesterday’s episode of Masters in Trading Live, Jonathan delved into the “Drone Revolution,” detailing nine different drone companies. If you’re considering drones today, this is a “must watch.”
And as a reminder, you can join Jonathan for his free Masters in Trading Live broadcasts at 11:00 a.m. Eastern time every day the market is open. They’re a fantastic way to learn more about trading, while also giving you the tools to put a wad of cash in your pocket.
By the way, if you want to dive into the specifics on how Jonathan trades drones, he’s put something together for you. From Jonathan:
If you’re interested in learning the best way to capitalize on the surge in drone stocks, I’ve got something special for you…
It’s all in one strategy I’ve honed over 27 years that thrives on divergences between stocks that usually trade together. I’ve put everything you need to know into one special presentation you can watch right here.
We’ll keep you updated on all these stories here in the Digest.
Have a good evening,
Jeff Remsburg
The post The Marketâs â1,000% Gainâ Lie appeared first on InvestorPlace.