Louis Navellier sees attractive conditions for equitiesâ¦ how to prepare for 2022â¦ where VC pros are looking for the big winners of tomorrow
I expect the current âGoldilocksâ environment of robust GDP growth, low interest rates and an accommodating Fed to persist for the foreseeable future, and that’s great news for us. the stock market.
This forecast comes from the legendary investor, Louis Navellier. It was part of his Accelerated profits problem earlier this week.
Let’s go back with Louis on why we shouldn’t worry about hawkish surprises from the Fed:
Federal Reserve Chairman Jerome Powell was recently reappointed for a second four-year term. Thus, the Fed should remain accommodating.
Yes, the Fed’s quantitative easing was cut from $ 120 billion per month to $ 105 billion per month, but the drop was smaller than many economists had anticipated.
The Fed’s ultra-low interest rate policy also remains in place, with our central bank only due to hike rates by 0.25% in 2022.
*** In the meantime, there is some positive news on US consumers and businesses
In Louis’ update, he highlights how Adobe Analytics predicts Americans could spend $ 207 billion in November and December, a 10% year-over-year increase. Louis thinks this shopping season could break all records.
On the US business side, the Commerce Department said durable goods orders rose 0.5% in October. This exceeded economists’ estimates for an increase of 0.3%.
Since the start of the year, durable goods orders have jumped 22.1% and shipments have jumped 13.1%.
Back to Louis:
When consumers and businesses are healthy, it effectively acts like the one-two punch to propel the US economy considerably higher …
Now, I know I don’t feel like investors are flocking to the stock market right now, given all the wild swings of the past week and the dismal start of the market in December. But the first half of December is historically weaker than the second half of the month.
The stock market tends to resume its ascent as we approach Christmas, as the holiday spirit of Main Street rubs off on Wall Street. As a result, according to Yardeni Research, the S&P 500 has posted gains in December 73% of the time since 1928.
So, I encourage you not to let the daily gyrations of the market scare you off from the market.
*** If you want even more insight into what’s in store for inventory, through 2022, we’ve got you covered.
Yesterday afternoon we had a special live conference called Early Warning Summit 2022, which turned into one of the biggest events in InvestorPlace history.
Thousands of attendees showed up to listen to Louis, Eric Fry and Luke Lango discuss what is coming in 2022 for the investment markets and how to position your wealth accordingly.
These expert analysts discussed the main issues facing investors today – inflation, Fed policy, the impact of the pandemic on growth, and more. They even gave tickers for four different stocks set to skyrocket in 2022.
If you missed the event, you can watch the replay by clicking here.
Ultimately, if you’re worried about recent volatilityâ¦ if you don’t know which sectors are likely to perform better for your money next yearâ¦ if you just want to find out how three professional fund managers see today’s markets. , be sure to watch the replay of Early Warning Summit 2022.
*** Change of year, how would you have liked to invest in Coinbase in 2013 at $ 1 per share?
This is exactly what legendary venture capitalist Andreessen Horowitz (a16z) did.
So when Coinbase went public earlier this year at a price of $ 381 per share, a16z made a gain of $ 9 billion.
Yes, we believe this decade will see incredible returns from some areas of the public market. But there’s no denying that investing in a small private start-up – which will eventually grow into a huge publicly traded company – produces returns that eclipse anything you’d get from investing after the IPO.
It is obviously too late to see this type of payoff from Coinbase, but would you like to know where a16z is putting its money to profit today?
Our venture capitalist, Cody Shirk, just shed some light on the answer in his latest issue of Venture capital collection.
For the most recent Digest Readers, Cody is a seasoned venture capitalist who has completed deals around the world, which has earned him a growing list of over 1000% of venture capitalists to his name.
In its free newsletter, Venture capital collection, he shares tips and tricks on private investment … the trends he follows … even the transactions that catch his eye. Cody’s Digest is a fantastic way to take the pulse of the venture capital world.
In last week’s issue, he highlighted where a16z is now looking for tomorrow’s $ 9 billion windfall.
Right now, a16z is raising money for a new fund and hopes to raise up to $ 1.5 billion.
Development? Health and biotechnology.
To be clear, we are not talking about traditional investments in health care.
Instead, a16z and other large venture capitalists are targeting cutting edge companies that challenge the traditional ways we take care of our bodies.
What types of businesses are we talking about?
We will take a look.
*** Cody presents three private companies: DeepCure, Isomorphic Labs and Rigetti
Deepcure is using artificial intelligence (AI) to rethink the science of drug development. The company’s vision “is to use AI-based discovery to create better molecules and faster treatments for every protein target relevant to disease.”
Isomorphic Labs is “a commercial enterprise with a mission to reinvent the entire drug discovery process from first principles with an AI-driven approach and ultimately to model and understand some of the fundamental mechanisms. of life “. By the way, it’s a Google spin-off.
Finally, Rigetti is building quantum computing technology that âcombines advancements in engineering, physics, computing and manufacturing. Integrating all these specialties under one roof and in a technological stack allows us to go further, faster.
Let’s get back to Cody on why he finds this third venture particularly interesting:
First of all, Rigetti is not necessarily a biotechnology company. Instead, Rigetti is focusing on building quantum computers that can be applied to everything from optimizing food production to financial modeling. But their main target is the huge biotech industry.
The second and most notable reason why Rigetti is interesting is that a16z has already invested in this company through its previous biotech fund.
And guess who is going to go public through a SPAC (ad hoc acquisition company) sure to be lucrative for early investors?
That’s rightâ¦ Rigetti.
By the way, we talk a lot about overgrowth trends here in the Digest. Keep your eyes peeled for all things “quantum computing”. It’s happening – and it’s going to transform our world and our daily lives. More on this in an upcoming Digest.
*** As we have already noted, the technological advancements we are going to see this decade will be mind-boggling
And we are fortunate to invest in many of them from an early age.
The amount of wealth that will be created when a handful of these small private companies transform into mega-cap stocks will be extraordinary. So if venture capital investing is out of place in your current portfolio, please start learning more. If you look at the portfolios of elite, ultra-wealthy institutions and billionaire hedge funds, they all have significant private equity exposure.
I’ll give Cody the last word:
In the years to come, there will be medical breakthroughs that we simply cannot comprehend.
Breakthroughs like 3D printed organs, cures for previously incurable diseases and even a reversal of the aging process.
Quantum computing, AI and other technological advances will completely revolutionize the entire medical world …
And we’ll be there to invest along the way – early.
Have a good evening,