The Data Confirms It: You Need to Be Ready for This

Editor’s Note: I’ve talked to you before about the record amounts of cash sitting on the sidelines. In fact, I just updated my Quantum Edge Pro readers about it today.

Some estimates are as high as $8.8 trillion. When we add cash-like securities to the Federal Reserve’s data showing $6.4 trillion in money market funds, it’s entirely believable.

This tells me a) that a lot of investors have missed out on big profits, and b) there are huge opportunities ahead as that cash flows back into stocks.

I’m not the only one who sees this.

Louis Navellier also sees it.

If you’re not familiar with Louis, he is a legendary quant investor whom I admire, consider a mentor and friend, and continue to meet with weekly. He and I like nothing more than geeking out over numbers… and one number that has blown us both out of the water is that mountain-sized chunk of cash.

Today, I want to let Louis share some of his insights on what he and I are calling the “cash bubble”…

I’ve been in the investing game since the late 1970s, and I have made several big predictions that came true during my 40-plus investing career. Here are a few examples…

  • The market collapse of ‘87
  • The dot-com bubble burst
  • The 2008 Financial Crisis
  • The rise of the longest bull market in stock market history – just 10 days before it began

Today I’m sharing another big prediction with you: That $6 trillion cash bubble Jason mentioned is poised to burst. And when this happens, it will inject a flashflood of capital into the market – especially one small corner of the market.

And the reality is, most investors won’t grasp the full impact of what’s about to happen until it’s far too late, especially those with a decent chunk of money on the sidelines.

This shift has been brewing for a few years, but it’s only now about to hit its tipping point in the next few months as interest rates come down. And when it does, many could see their wealth evaporate.

But that’s just one side of the coin.

On the other side, wealth will be transferred to those who are “in the know.”

I saw the writing on the wall the last time this happened and recommended a string of small-cap stocks that turned out to be the famous FAANG stocks – Meta Platforms, Inc. (META),, Inc. (AMZN), Apple Inc. (AAPL), Netflix, Inc. (NFLX), and Alphabet Inc. (GOOG).

So, what led me to recommend these stocks?

My Breakthrough Stock-Picking System

It all boils down to a breakthrough stock-picking system I developed 40 years ago…

Back in college at Cal State Hayward in the late ’70s, everyone believed it was impossible to beat the market without taking on excessive risk.“

“Sure,” many said, “some traders can be lucky for a while, but no one can consistently beat the market.” At that time, most investors were content to invest in index funds like the S&P 500.

Thankfully, I was taught by a group of open-minded professors who offered me the investing chance of a lifetime. They gave me unprecedented access to Wells Fargo’s mainframe computers to build my very own stock selection models. This was before laptops, so this was a tremendous privilege.

With only a calculator and limited access to the computers, I actually started my first newsletter in my dorm room at school. I spent countless hours learning how to read and research market data, and I built a stock selection model designed to mirror the S&P 500.

I worked like an investigator who had to re-enact the crime, generating the precise conditions of the S&P – the same level of risk as the index and the same industry weighting as the index.

But things didn’t turn out as I planned. When I ran the model, my returns came out considerably better than the S&P 500! I was stunned by such results – and naturally determined to get to the root of what happened.

What I found was that a select group of stocks consistently outperformed the S&P in my model. These were smaller, supercharged companies that all had certain factors in common. 

  1. Increasing Sales Growth 
  2. Expanding Operating Margins 
  3. Earnings Growth 
  4. Positive Earnings Momentum 
  5. Positive Earnings Surprises 
  6. Positive Earnings Revisions 
  7. Free Cash Flow 
  8. Return on Equity 

My quant system runs a score on these eight parameters, every week, for more than 6,000 stocks. From there, I’m able to analyze the data at a glance. The most important factors to me are sales growth and earnings growth.

Out of all eight fundamental factors, those are the keys.

How to Be an “In the Know” Investor

As a regular reader of Jason Bodner’s Power Trends, you already know the importance of quantitative analysis and high-powered systems that analyze the right data the right way.

It’s all about the highest probability of making money.

If you want to make sure you’re on the right side of this wealth transfer, then be sure to attend my Emergency Cash Bubble Briefing on Wednesday, March 13, at 1 p.m. Eastern time. (You can reserve your spot now simply by clicking here.)

During this briefing, I’ll review:

  • The cash bubble and what it means for investors.
  • My investing gameplan.
  • And I’ll share the name of a stock that’s poised to benefit – absolutely free.

Just click here now to reserve your spot so you don’t miss out. What I share during this Emergency Cash Bubble Briefing could help you build an entire retirement nest egg with just a few small moves.


Louis Navellier

P.S. Jason here again. I’ll be back tomorrow with the next edition of Power Trends+, our new video issue where we analyze stocks and the market.