Donald Trump’s Election Surge: Billionaires Win Big as Markets Rally
With a significant push from the world’s wealthiest individuals, Donald Trump is poised to return to the White House in January.
Elon Musk also reaped rewards from this political shift.
The Market Reaction
On Wednesday, November 6, the day after the election, stock markets experienced a remarkable increase.
The S&P 500 climbed 2.5%, the Dow Jones Industrial Average advanced 3.6%, and the tech-heavy Nasdaq Composite surged nearly 3%.
Musk, holding a considerable share in Tesla Inc. (TSLA), saw his net worth spike by approximately $26.5 billion that day, as reported by the Bloomberg Billionaires Index.
This boost brought his total wealth to around $307 billion, though it has slightly decreased since then.
Musk wasn’t the only billionaire to profit from this Trump wave.
Bloomberg estimates that the ten wealthiest individuals globally added about $64 billion to their fortunes on the day following the election.
Wealth Defined
It’s evident these billionaires far exceed any traditional notion of “wealth.” Their immense resources give them power to influence markets and beyond.
However, the “average wealthy” person lacks such influence. An individual with $1 million, $2 million, or even $3 million invested is dwarfed by large institutional investors.
Known as the “elephants” of the market, these money managers operate large pools of assets for mutual funds, hedge funds, sovereign wealth funds, pension funds, and insurance companies.
One institutional investor may control over $10 billion in assets, making a wealthy individual with $5 million seem negligible by comparison—the institutional investor is 2,000 times larger!
While individual investors can’t notably affect stock prices, institutional players can drive prices up significantly with their large investments.
The Norwegian sovereign wealth fund is a prime example, boasting over $1.7 trillion in assets in 2024, a staggering sum compared to a typical $10 billion fund.
In essence, institutional investors possess a monumental amount of capital. Their collective actions are vital for any significant stock market movement.
The Power of Tracking Institutional Investors
Knowing what these large money managers buy can provide a substantial advantage in the market. With our methods, we can track their investments and potentially capitalize on their buying power.
Using my Quantum Cash system, we identify stocks that fit the criteria desired by these institutional managers.
What is Alpha?
In finance, “alpha” reflects an investment’s performance relative to a market benchmark like the S&P 500. A positive alpha indicates that a stock has outperformed its benchmark.
For instance, if the S&P 500 rises by 10% and a specific stock climbs by 12%, that stock has an alpha of 2.
The Quantum Cash system analyzes the market for stocks with higher alpha. We also consider volatility, as many higher-performing stocks are more volatile than the overall market.
Yet, my research reveals that some of the best growth stocks outperform the market while exhibiting lower volatility.
We evaluate stocks based on their alpha and volatility, prioritizing those that deliver strong returns with minimal risk. This is where institutional managers are directing their substantial capital.
Successful Examples of Our Strategy
Our “elephant tracking” approach led us to recommend Spotify Technology S.A. (SPOT) in November of the previous year. Following an earnings report, its stock jumped over 10% after the market close on Tuesday, translating to over 170% gains since we added it to our Buy List.
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M-tron Industries and Revolve Group Surge After Strong Earnings Reports
Exciting Developments for M-tron Industries Inc. (MPTI)
My Quantum Cash system led us to discover M-tron Industries Inc. (MPTI) in October of last year. Small-cap stocks like MPTI are often referred to as “bunny” stocks; they may remain stagnant for some time but can quickly “hop” upward in response to positive news or unexpected earnings.
After announcing earnings that exceeded analyst predictions on Wednesday, MPTI’s stock jumped nearly 10%. This impressive performance has resulted in a remarkable total return of over 140% within just a little over a year!
Revolve Group Inc. (RVLV) Also Makes Gains
In September, I recommended investing in an online retailer, Revolve Group Inc. (RVLV). This stock recently reported outstanding earnings that were 50% above analyst expectations. As a result, we’ve already seen a gain of over 30% on our position in less than two months.
The Value of Tracking Institutional Investors
In the world of institutional money management, some investors concentrate on high-dividend stocks, while others focus on blue-chip stocks like The Walt Disney Company (DIS), Apple Inc. (AAPL), and JPMorgan Chase & Co. (JPM). However, many large investors seek growth stocks that have the potential to significantly increase in value. These investors aim to identify the next big success story, similar to Apple or Disney, by looking for clear signs of growth in revenue and earnings.
The successes of MPTI and RVLV demonstrate the rewarding potential of investing in rapidly growing companies. By identifying firms with robust earnings growth, large upside potential, and substantial institutional support, investors can achieve remarkable results.
It’s essential to remember that large money managers, often seen as the “elephants of the stock market,” have resources many times larger than an average investor. This makes tracking their investment movements crucial. My Quantum Cash system utilizes an “alpha/volatility” metric to follow these institutional investors closely. Effective tracking can provide insights into which stocks are being favored by significant market players.
While predicting the future remains a challenge, knowing which stocks institutional investors are buying—and when—can significantly inform individual investment decisions.
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Unlocking Big Profits with Quantum Cash: A Formula for Successful Investing
The key to successful investing lies in knowing what stocks to buy, which can give you a significant advantage. It’s a fundamental strategy that can transform small investments into substantial profits.
Introducing the Quantum Cash System
At the heart of this financial strategy is the Quantum Cash system. This innovative method employs advanced algorithms that analyze vast amounts of data to identify promising investment patterns, particularly those indicating a stock might be on the verge of a significant increase.
Real Results from Quantum Cash
Thanks to Quantum Cash, many investors have seen impressive returns. For instance, someone who made an initial investment of $7,500 in previous successful recommendations could have earned $3,375 in just one month, $4,650 in three months, and a remarkable $16,875 within 11 months.
Enhance Your Portfolio
If you’re interested in gaining an additional edge in your investment portfolio, consider exploring the benefits of the Quantum Cash system. I recently held a presentation where I discussed the intricacies of this method and its potential to bolster your investment strategy. Don’t miss out on this opportunity.
Click here to watch my presentation on how the Quantum Cash system works.
Best regards,
Louis Navellier
Editor, Market360
Disclosure: As of today’s date, I own the following securities discussed in this analysis: M-tron Industries, Inc. (MPTI), Revolve Group, Inc. (RVLV), and Spotify Technology S.A. (SPOT).
