Ian Wyatt Interviews Louis Navellier

This week we're honored to feature Louis Navellier, editor of Blue Chip Growth. During his 27 years as an investor and investment expert, Louis has earned a national reputation as a savvy stock advisor and portfolio manager. Louis shares with us today his thought on growth oriented stocks and even shares a few of his best recommendations.

Ian:  Louis you're one of the best-known investment experts in America today with your best-known service, Blue Chip Growth, around since 1998. There's been a lot of talk about emerging markets, particularly China, as the place to be for growth. What do you see as the future for investing in solid, blue chip stocks?

Louis: You know I'm a growth guy through and through. I am extremely excited about the growth in China because it has created a real sweet spot for my strategy and my subscribers. That's why I've recommended a number of stocks that are either based in China or are U.S. stocks that are capitalizing on the growth there.

The average Chinese stock doubled from December 31 to August 1, and I expect a lot of future growth from Chinese blue chips in the coming months as industrial production increases. Due to a weak U.S. dollar right now, we should see China's exports really take off.

But I think China's explosive growth could be duplicated in other emerging markets, too, so I encourage investors to think about other regions as well. The bottom line is that if you want to be a successful investor in blue chip stocks, you have to keep an eye on your international exposure and make sure you have enough of it. But, China certainly isn't the only option for this right now. There's money to be made throughout Latin America and Asia.

For instance, I'm very bullish on Sociedad Quimica y Minera (NYSE:SQM). This Chilean chemical company is one of the world's top lithium suppliers. Lithium is used in electronics like laptops and cell phones, but most importantly is a component of the fast-charging batteries in hybrid autos. My Blue Chip subscribers have made a hefty 40% profit in just a few months in SQM, and the stock is one of my Top 5 Buys for October.

This is a perfect example of how to find the opportunity in international blue chips.

Ian: Your 2008 Winner's Circle stocks had quite a few technology stocks like Apple, Google, RIMM, and MEMC. Which sectors do you like for the remainder of 2009 and even more so going into 2010?

Louis: I still like tech. In fact, as part of Blue Chip Growth, I offer sector-based ETF recommendations that I call Advanced Sector Alerts. These are meant to indicate emerging sector trends and get us in the hottest industries first. And right now, we currently own the iShares DJ US Technology Sector Index Fund (IYW) and have made a nice profit of 17% since our July issue. No specific stocks have quite the numbers I'm looking for yet, but this ETF is a great way to play this sector with low risk. I expect winners from the tech sector will emerge as we get into 2010, so I'm more bullish on tech long-term.

If I had to choose my favorite sector, however, I would pick materials as the biggest profit opportunity right now. I'm talking stocks in the metal and mining business, oil companies and other commodity-based plays. Since materials like crude oil, gold, copper and steel are all priced in U.S. dollars, these commodities inflate in price as the dollar declines-and companies that deal in these goods naturally see their bottom lines increase. Remember the days of $150 per barrel oil in the summer of 2008? The weak dollar had a lot to do with that. The dollar is currently on the decline and has helped push precious metals like silver and gold to new heights.

Ian: Along those same lines, what are your favorite stocks right now?

Louis: My favorite stocks are the mix of those two strengths we talked about-international companies with a foothold in commodities...

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