Louis Navellier Newsletter and Recommendations

October 2, 2008

Don't Let This Buying Opportunity Pass You By

I know I don't have to say this, but we're witnessing one of the most volatile periods in market history. It may seem like ordinary investors don't stand a chance right now, but don't despair. I'll admit it's hard to spot the opportunities amidst the chaos, but there are opportunities and I'm here to find them for you.

Consider Warren Buffett's actions lately. In late September, Buffett's Berkshire Hathaway invested at least $5 billion in Goldman Sachs to stave off fears that the large investment bank could face the same squeeze as Bear Stearns and Lehman Brothers. Berkshire also dipped into its cash cauldron when its MidAmerican Energy unit announced that it would purchase troubled utility Constellation Energy Group (CEG). And just yesterday, Buffett said he will buy $3 billion in preferred shares of General Electric (GE) because "GE is the symbol of American business to the world."

Is Buffett offering up this money as charity? Hardly. He's trying to profit—something he's pretty good at doing. And believe me, Buffett is definitely on to something.

Here's one of my tricks to finding great profit opportunities—watch the panic levels. The panic on Wall Street has been laid on thick in recent weeks. When the fear is this pervasive, almost everyone who is going to sell stock has already sold. More bad news will only push stocks down by so much. Case in point: GE has always been a market mover. When the company missed earnings in April it dragged the Dow down by 2%. But last week GE slashed its guidance for the third quarter and the whole year, and Wall Street didn't bat an eye. On the other hand, in these challenging times a handful of good news can make a stock feel like a real winner. And when that happens, we see stock prices skyrocket! Buffett is too smart to think that GE's current troubles will last forever, and is banking on huge returns once the stock recovers. Obviously, most of us can't buy a HUGE ownership stake in a company like Buffett did. But now more than ever is! the time for long term investors to "lock and load." A year or two down the line it'll be the smartest move you ever made!

This is one of the best buying opportunities we'll see in our lifetimes. The earnings environment is about to improve and there's still nearly $4 trillion in cash sitting on the sidelines waiting to flood back in.

Our strategy is clear. Those stocks with the strongest sales and earnings will lead the way when investors begin to jump pack into the market. As a Blue Chip Growth subscriber, you know that we've identified several stocks that are poised to rally in the weeks and months ahead. When markets recover, it usually isn't a graceful move up. It's a mad dash for stocks that leaves the timid holding cash and missing out on all the fun.

I believe that most of us will look back on this period as the best buying opportunity for fundamentally superior stocks in our lifetimes. And I don't want you to miss out!

I'll have the next issue of What's Working on Wall Street Now next Thursday, October 9.
Sincerely,Louis Navellierhttp://www.navelliergrowth.com/