Louis Navellier update for 11/07/08, conclusion...

We believe the stock market is in the process of mending. As you already know, but probably need to be reminded of in this highly volatile environment, the stock market moves ahead of the economy. It sells off before the economic data turn sour, and it rallies before they turn rosy.

This does not mean we expect the market to go straight up from here. We could very easily retest the lows, and possibly make new lows. But we think we’re very near the bottom, certainly low enough that these levels could look like a phenomenal buy a year or two from now.

More immediately, the economic data will get worse, and the market’s extreme rollercoaster ride will continue. Nevertheless, we think the trend is starting to turn upwards. Moreover, we believe the mood will improve with discussions of another stimulus package, another rate cut from the Fed on December 16, more rate cuts from foreign central banks, additional liquidity strategies from central banks, the holiday spirit, and year-end and first-quarter pension funding.

Have a good weekend.