How to Profit from the Interest Rate Panic

Louis Navellier here.

Interest rates are going UP…and there are TWO crucial facts that you need to know about rising interest rates that can make you A LOT of money in the next 12 to 24 months:

Fact #1: When interest rates go up, investors briefly panic…and the market becomes more volatile. We’ve seen that yet again in recent weeks.

Fact #2: Rising interest rates are NOT correlated with stock market crashes but are usually followed by huge market GAINS.

That’s right: The last time interest rates rose significantly, beginning in 2004…the stock market rose nearly 50% in value!

Between July 2004 and August 2007, the Fed Fund rate skyrocketed 400% — from 1% to 5% — yet the S&P 500 rose from the 1050 level all the way to 1550!

That’s been a pattern historically.

  • In 1995, the Fed increased the Fed Fund rate 1.6 percentage points…and the S&P 500 rallied 37.6%.
  • In 1989, the Fed Fund rate increased 1.6 percentage points, and the S&P 500 rallied 31.5%.
  • In 1980, the Fed Fund rate jumped an eye-popping 2.2 percentage points, and the market responded by rallying 32.4%!

And as I explain in my blockbuster new report
— The Best Stocks for Rising Interest Rates —
we’re about to see the same thing again

We now have a HUGE opportunity going forward to buy some fantastic stocks at bargain basement prices…and then cash in as the market continues its climb upward.

Subscribers to my Blue Chip Growth advisory service are already gobbling up record profits.

In recent months, we’ve taken profits of 151.86% on Apple…85.91% on Limited Brands…81.76% on Alexion…49.75% on CF Industries Holdings…29.49% on AutoZone…and on and on.

So far in 2013, we’ve also bagged 161.14% on American Beverage…86.47% on O’Reilly Automotive…48.64% on Seagate…and 39.31% on Ross Stores.
And that’s just a few of our winners!

Of the 35 stocks we currently own, two have already doubled our money with a 100% total return…two have returns of 50% or higher… 14 have double-digit returns and 5 have single-digit gains.

These top performing stocks are in divergent industries. But they are all making money hand over fist…even as interest rates rise and despite the recent volatility…just as they always have.

Don’t Let Short-Term Volatility
Cheat You Out of the Biggest
Investing Gains in a Decade!

And that’s what I want to talk to you about today.

Too many investors may be spooked by the rise in interest rates, falsely believing that rising interest rates mean they should stay out of stocks.

That’s actually the WORST possible thing they could do.

That’s because when interest rates rise, traditional income investments — bonds, high-yield dividend stocks, REITs and some MLPs — plummet.

The safe haven is blue chip stocks — the “steady Eddy” conglomerates that are not nearly as vulnerable to short-term fluctuations in the capital markets as are small businesses or income investments such as REITs.

That’s why I’ve decided to create a brand-new special report that tells you about the best stocks for an era of rising interest rates.

It’s called (you guessed it) The Best Stocks for Rising Interest Rates. (Blue Chip Growth members can access this report now by logging into our secure website here.)

Here are a few samples…

Rising Interest Rates Stock #1:
A Biotech Stock That Has Averaged
15.97% a Year…for 18 Years!

My first pick for an era of rising interest rates — and one almost certain to boost the performance of your portfolio in 2013 — is the global biotech company Amgen (AMGN).

A year ago at this time, you could have pick up shares of AMGN for around $65. As I write these words, it’s selling for $100. That’s a total return of 53.8%.

Why is Amgen on such a tear?

Well, the long-term prospects of the world’s leading biotech stocks continues to improve. Their business models don’t really depend all that much on borrowed money.

Drug companies and biotech firms don’t care whether their medications are purchased by individual patients, Uncle Sam or private insurers. The profits are the same for them either way!

What’s more, Amgen in particular has a great track record of beating expectations.

At the end of April, the company reported that its profits grew 21% over the same period a year ago. Clearly, the recession didn’t keep this stock from growing sales and profits.

AMGN earned $1.96 a share in the fourth quarter, twelve cents ahead of the consensus estimate. Revenue grew 5% to $4.24 billion.

Amgen has also reported good progress in its long-term growth goals. Many biutech companies are lucky to get one or two drugs approved by the FDA. Amgen has ten, with names such as Enbrel, Aranesp, Epogen, Neulasta, Neupogen, Prolia, and Xgeva.

That’s one of the reasons why the company expects 2013 sales in a range of $17.8 billion to $18.2 billion, with earnings in a range of $6.85 to $7.15 per share.

For investors who prefer a Warren Buffett-like “set-it-and-forget-it” investing style, Amgen makes particular sense.

Despite all the ups and downs of the market over past years…despite the “tech wreck” of 2001 and the credit wipeout of 2008-2009, Amgen has been a consistent performer.

It’s averaged an annual return of 15.97% a year…for the past 18 years!

The Best Stocks for Rising Interest RatesI’ll tell you all about Amgen in your free copy of The Best Stocks for Rising Interest Rates.

I’ll also tell you some other highly profitable blue chips that could make you a pot of money as interest rates rise, including…

  • Another pharmaceutical company that has made important advances in the treatment of one of the leading causes of blindness and which has seen its stock DOUBLE in value since I recommended it in 2012…
  • A $23 billion tobacco giant that covers five of the top 10 best-selling American cigarettes, pays a respectable dividend and is up 89% since I recommended it…
  • One of the world’s leading producers of insulin (and a major player in the war on diabetes), that has DOUBLED investors’ money since I recommended it…
  • Perhaps the largest wholesaler in the U.S. with an estimated 56 million customers in 40 states as well as Australia, Britain, Canada, Japan, Mexico, Puerto Rico, South Korea and Taiwan.
  • And many more!

Rising Interest Rates Stock #2:
A $14 Billion American Food Company
That Has Seen Its Shares Jump 35% Since
Last August!

My second example of a stock that will likely do well as interest rates rise has serious brand power.

It’s one of America’s best known food brands, a manufacturer of everything from breakfast cereals to granola bars.

The company’s snacks are marketed in more than 180 countries…and counting. Over the past 11 years, it’s seen its business in emerging markets (Latin America, Asia, South Africa, the Mediterranean and Russia) boom 140%!

That’s because the company has been expanding past the cereal business through a series of high-profile acquisitions.

In 2001, the company acquired a cookie and cracker manufacturer for $3.86 billion. Since then, the company has also acquired a series of well-known cookie and snack brands.

Finally, with its 2012 acquisition of a gourmet potato chip company, this conglomerate is now the second largest snack food company in the world, second only to PepsiCo (PEP).

This momentum shows no signs of slowing. The company recognizes that consumer tastes are changing—many snackers are now swapping traditional snacks for healthier options and bolder flavors.

In June alone, the company unveiled several exciting new products, including chipotle cheese snacks, hummus chips, and a new line of hot cereals.

This translates into strong profit potential: The company pulls in $14 billion annually with gross profits of $5.4 billion. What’s more, sales are up…12.2% year over year.

Not surprisingly, this American mainstay is one of the best performing stocks you’ll ever find — in good times and in bad. The company has a strong track record of raising dividend payments — its quarterly dividend has risen nearly 75% in the past decade.

The Best Stocks for Rising Interest RatesThe stock has averaged better than 10% a year over the past four years – and since last August, the stock is up 35%.

So whether you’re looking for strong growth potential or a solid dividend, you get the best of both worlds with this conservative stock.

I’ll tell you all about this growing food company in your free copy of The Best Stocks for Rising Interest Rates.

I’ll also tell you about…

  • A retail company that operates roughly 2,000 home improvement stores throughout North America and profits from the rising tide of “do-it-yourself-ers”…with a stock that has risen 37% since I recommended it in late 2012.
  • One of the world’s largest and most successful generic drugmakers, with its name on everything from antibiotics to contraceptives to smoking cessation treatments…
  • Perhaps one of the most compelling profit opportunities to come out of the housing recovery. That’s because this company operates 4,000 paint stores and facilities worldwide, and its product has all but been flying off the shelves.

And many more!

Rising Interest Rates Stock #3:
An Oil Refinery Stock That Has DOUBLED
Investors’ Money in the Past 12 Months!

My third example of a stock likely to do well as interest rates rise is an oil refinery company that operates several refineries in the Gulf Coast and Midwest, with a total capacity of 1.7 million barrels of crude oil a day.

This company refines everything from gasoline to propane to special products like asphalt.

On top of this, the company distributes its refined products through its fleet of barges and trucks as well as 8,300 miles of pipeline, supplying petroleum supplies to about 5,100 of its own gas stations as well as 1,400 affiliated gas stations in the U.S.

This company is actually a spin-off of a much bigger energy corporation. In June 2011, the parent company took the refining part of its operation and turned it into its own company.

At the time, I didn’t recommend my readers add shares of the new spin-off because there simply wasn’t enough earnings data at that point to make an informed judgment.

However, I liked the refinery division of the business, and now that we’ve had over a year’s worth of earnings data, we can see that this is a premium stock on its own.

The most recent report was very strong, with the company earning $725 million, a 22% jump over the year before.

On a per-share basis, the company earned $2.17, up sharply from $1.70 per share the prior year.

Growth won’t continue at that pace, but I expect it to remain solid, and analysts have been upping their estimates. I also like that the company’s operating margins are improving due to the glut of light sweet crude oil in the U.S.

And get this: The company’s stock has DOUBLED in value since May of last year — jumping from $35.24 a share on May 29th to $71.80 today.

The Best Stocks for Rising Interest RatesI consider this company a STRONG BUY right now in my stock grading system, one of my Top 5 picks in fact, and we also get a decent dividend yield of about 1.9%.

I’ll tell you all about the exciting opportunity with this refinery stock in your free copy of The Best Stocks for Rising Interest Rates.

I’ll also tell you about…

  • A electronic payments processor that can handle over 24,000 transactions per second! Since I added it last December, the stock has gained over 30%.
  • The country’s top consumer healthcare company that believes in itself so much it continually buys back more and more of its stock and rewards its shareholders with a 3% dividend yield.
  • A risk management expert with strong ties to the nation’s top insurers, mortgage companies and healthcare businesses. Flush with cash, this company just added $300 million to its ongoing share repurchase program.
  • One of the largest and most popular non-alcoholic beverage makers that just added $1 billion on top of its existing $2 billion stock buyback program…seeing its stock jump from $12 a share in 2009 to $45 a share today.
  • Not one but two cable companies with aggressive stock buyback programs…and industry leading dividend yields.
  • And lots MORE!

It’s NOT Different This Time:
Slow and Steady Investment in Quality
Companies is the Path to Real Wealth

Now, let me say a few words about my advisory service, Blue Chip Growth.

According to Hulbert’s Financial Digest, my Blue Chip Growth newsletter has outperformed the S&P 500 by $3-to-$1 since 1998…

That’s important to me, but here is what’s more important:

According to Hulbert’s data, we’ve also beaten the S&P 500 by $3-to-$1 even over the past 10 years, when the stock market has taken the worst beating since the Great Depression.

Despite the 2008-2009 stock crash, our Blue Chip Growth portfolios have posted an average annual return of 11% a year even including the crash!

To put that in perspective, an 11% average annual return is enough to turn every $100,000 portfolio into $283,942 in 10 years and into $806,231 in 20.

More realistically, if you start with a nest egg of $100,000 and add only $1,000 a month to it, in 20 years you’d have $1.7 million.

And as far as “what have you done for me lately,” consider this:

Our average return from the closed positions in 2013 is a whopping 40% — with only three stocks in the red, two single-digit gainers, seventeen double-digit gainers and two triple-digit winners!

Systematic and steady growth…taking advantage of market trends rather than fighting them…is the secret to real wealth.

Now More Than Ever, You Need Someone
to Guide You Through the Mine Field

I can honestly say that the next 12 to 24 months could end up being one of the most profitable periods we’ve seen in years.

The combination of a rock-bottom dollar…soaring corporate profits…HUGE stock buybacks…and rising interest rates…all point to some very nice gains.

It’s time to make some serious money!

But…there is one caveat: you have to be very careful as well. The opportunities have rarely been more spectacular but the dangers are greater as well.

That’s why I’d like to offer you a zero-risk trial of my Blue Chip Growth investing service.

You see, I’ve been doing this a very, very long time.

I can tell you sincerely that, once you try all of the fads and gimmicks — once you invest in sector ETFs and emerging markets and this system and that contrarian approach — it all comes back to basics.

If you want to make money consistently, year after year, you have to invest in quality companies in expanding markets and that produce growing profits — top-tier blue chip companies like the ones we recommend in Blue Chip Growth.

The proof is in the pudding. As documented by Hulbert, we’ve consistently outperformed the market by 3-to-1 since 1998 — year after year.

And don’t take my word for it.

Here are what some ordinary investors have to say…

Folks like Rosemary B., a long-time member of my Blue Chip Growth advisory service from Florida, who recently wrote to report:

“In the two years since we subscribed, our net worth has more than doubled.”

And like Pearl P., another Blue Chip Growth member from Ohio who boasts,

“My broker used to give me advice. Now he asks me what I’m interested in. Mr. Navellier is my HERO.”

Join Me Now While Blue Chip Growth Is Less
Than 27 Cents Per Day: YOU SAVE HALF!

Normally, a one-year subscription to my Blue Chip Growth service would be a bargain at $199. (Other comparable services charge $499 or more.) But you don’t have to pay anywhere near that much.

For a limited time, you can take advantage of the best subscription deal we offer for Blue Chip Growth. By joining me now, you’ll SAVE $100 instantly and get a copy of The Best Stocks for Rising Interest Rates — a $39 value — FREE!

Want a better value? Simple: Join me for two years!

The regular price is just $299, but if I hear from you now, you’ll save half off — a full $174 — and receive The Best Stocks for Rising Interest Rates, PLUS THREE additional Bonus Gifts — valued at $126 — FREE:

BONUS GIFT #2: Create Your Own $1 Million Dollar Retirement Plan — a $29 Value, Yours FREE! No investor should believe they have to settle for tracking an index fund like the S&P. Here at Blue Chip Growth, we believe you should beat it at least three times over every year — without taking on undue risk!

As a result, I’ve prepared a special report that gives you a simple, step-by-step plan for beating the market by 3 to 1 and creating a $1 million retirement fund. Whether you are currently retired or simply actively planning for your retirement, this guide will give you the tools you need to growth your wealth three times faster than you otherwise would. You’ll discover…

  • The 8 fundamental factors to use when selecting stocks for your million-dollar retirement portfolio…
  • Why it’s important to divide your portfolio into three distinct "risk categories"…
  • The importance of proper timing when buying stocks…
  • How to know when it’s time to sell – and what you can do to maximize your profits.
  • How to use the Blue Chip Growth Buy List when designing your million-dollar retirement portfolio…
  • And much, MUCH more!

BONUS GIFT #3: The Great Energy Boom of 2013-2014– a $29 Value, Yours FREE! Make no mistake: a number energy stocks are about to take Wall Street by storm again — thanks to the Fed’s low-dollar and low interest rate policies. But not all energy companies are created equal. Crude oil has been even more volatile of late, so safety is the name of the game if you want to profit from energy stocks. As a result, I’ve evaluated the entire list of utilities and independent power producers in the entire country. And from that list, I’ve identified a handful that will not only buck the trend of lower energy costs but also profit from them. I tell you about…

  • More than 30 energy companies you should avoid at all costs…
  • The best energy infrastructure company — resilient to fluctuations in oil prices, but it still cashing in big time on the transportation and storage of crude oil, refined products and natural gas in the U.S.
  • A global oil company that is making so much money it pays out a 7.5% dividend like clockwork…
  • And more.

BONUS GIFT #4: — Better-Than-Bonds Dividend Stocks Every Investor Must Own — a $29 Value, Yours FREE! Dividend stocks pack a one-two punch of security and profit opportunity. As a holder of dividend stocks, you receive a steady stream of income from your investment. The cash payments these companies provide give investors the confidence they need to keep buying pressure behind the stock and keep volatility low. Now is a great time to focus on dividend stocks because they offer superior protection and many are trading at prices that make them some of the most attractive buying opportunities around! In this free bonus report, I reveal…

  • Why a company’s willingness to pay consistent dividends over many years is a pretty good indicator that it is on solid ground and that it is backed by strong fundamentals…
  • 4 criteria I use for selecting quality dividend stocks…
  • 2 rival companies that pay eye-popping dividends…
  • 2 Latin American companies with solid dividend growth…
  • Another beverage manufacturer that makes bigger profits as the dollar falls…
  • And more.

As I mentioned, over the past 13 years investing in top-quality blue chip stocks has resulted in my subscribers generating greater profits than the market, growing three times richer.

And if things go as I expect over the next several months, I expect that we’ll do much better even than that.

As I said at the beginning of this message, our top recommendations are ALREADY producing very handsome gains — 143% …201.68%… 141.15%… 100%…

I do NOT want you to miss out on this awesome profit opportunity.

As a result, I’ve created what I consider to be a truly “no brainer” offer:

Test Drive My Blue Chip Growth
Investing Service with ZERO risk
for a Full 90 Days!

I’m so sure your trial subscription to my Blue Chip Growth service will be worth every penny, I’m prepared to offer you the strongest money-back guarantee possible.

Try Blue Chip Growth with no risk or obligation. Read the special reports I’ve prepared for you. Use the subscribers-only website. Email me with any questions or comments you might have. Test my profitable email alerts.

Then, count your money: If you’re not absolutely ASTONISHED by the profits you’re making, let me know within 6 months of starting your subscription and I’ll send you a full, 100% refund. No questions asked, period!

Actually, I’ll go one step further than that: Even after the initial six month trial period, you may cancel at any time and receive a refund of the unused portion of your subscription.

In other words: There is no risk to you ever.

Bottom line: If the prospect of more than TRIPLING your wealth over the coming years is the least bit intriguing to you …

…if the opportunity to make ALL your investments safer and more profitable is important to you …

…then send for your FREE copy of The Best Stocks for Rising Interest Rates right away.

My ironclad 100% satisfaction guarantee means you have absolutely nothing to lose.

And as the explosive pent-up energy in the world’s greatest companies is finally unleashed this year…and the low dollar environment creates a veritable geyser of earnings… you’ll have the opportunity to enjoy truly life-changing profits.

I urge you: Join me.

Click on the button below. You have nothing to lose and prosperous future to gain.

Try my Blue Chip Growth
Risk-Free for 90 Days...

signed: Louis Navellier
Louis Navellier
Blue Chip Growth

P.S. Remember, by accepting a risk-free test drive of Blue Chip Growth, you’re not committing to anything. This is a purely provisional acceptance on your part. If you don’t see real money profits pretty quickly, and even up to a full 6 months, you may cancel and get all of your subscription price back. So, why not let me prove to you just how profitable the second half of 2013 can be? I think you’ll be amazed. Click here right now to accept your zero-risk test drive now.

More Louis Navellier



RSS Feed

Little Book

InvestorPlace Network