The 5% GDP Call Everyone Doubted – Now the Data Confirms It VIEW IN BROWSER Folks, we’re not even halfway through January, and one of my boldest predictions for this year is already coming to fruition. About three weeks ago, I went on Fox Business to have a discussion with Maria Bartiromo. And one of the things I said that caught her attention was my prediction that the U.S. economy would be on track to achieve 5% annual GDP (gross domestic product) growth in 2026. Many people doubted this prediction, claiming it was too far-fetched. But last Thursday, the Atlanta Fed raised its estimate of fourth-quarter GDP growth to a 5.4% annualized rate. Now, it will be a while before we get final GDP numbers for the fourth quarter. But the revision was primarily due to booming exports in the pharmaceutical industry, onshoring and a shrinking trade deficit. However, there is also an increase in productivity, thanks to AI, which is making labor more efficient. So, what drove me to make such a big prediction in the first place? And what does this mean about my prediction for 2026? In this week’s Navellier Market Buzz, I went into more detail about what led to my prediction, how calls for more aggressive rate cuts signal a shift in the Federal Reserve and previewed a few upcoming earnings in the bank industry as earnings season starts to kick off. Click the image below to watch now. To see more of my videos, click here to subscribe to my YouTube channel. Also, we just introduced a “Mid-Week” edition of Navellier Market Buzz, which will come out every Wednesday. If you missed our first “Mid-Week” video that we made last week, check it out here. Plus, the grades in Stock Grader (subscription required) have been updated this week! Click here to plug in your own stocks and see how they rate. The Risk No One Is Talking About The latest GDP data confirms that parts of the U.S. economy are performing better than many expected. That’s because artificial intelligence is reshaping both the economy and corporate profits. But that growth isn’t happening everywhere. As I mentioned earlier, it’s being driven by very specific areas of the economy, not the market as a whole. Most investors don’t realize this. They see strong growth numbers and assume their portfolios will naturally keep up, so they stay invested the same way they always have – without realizing that only a small group of stocks is responsible for most of the gains. But here’s the dangerous part about this that most investors don’t realize. When too much money flows into the same small group of companies for too long, returns tend to flatten out. And in 2026, I expect a major shift to happen, where a new set of winners leads the market – while yesterday’s leaders decline or stagnate. The result? A “hidden” crash that catches millions of investors completely off guard. In a special presentation, I explain how nearly half of American investors are at risk. But the good news is the real opportunity lies elsewhere. A different group of stocks are benefiting directly from where economic growth is actually coming from today. Click here to learn how to position yourself to profit before it’s too late. Sincerely, |
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