Remember when your mom would revise your allowance based on how well you cleaned your room? Well, that’s basically what just happened to 93 major stocks, except instead of mom, it’s legendary stock picker Louis Navellier, and instead of room-cleaning, it’s about whether companies can actually make money.
Here’s the deal: The Federal Reserve is about to cut interest rates for the first time in forever (okay, it’s been a while), and that’s got everyone scrambling to figure out which stocks are going to party hardest when borrowing money gets cheaper.
Why Rate Cuts Are Basically Stock Market Steroids
Think of interest rates like the cover charge at a club. When rates are high, fewer people want to invest because parking money in boring old bonds pays decent money. But when rates drop? Suddenly everyone’s rushing to the stock market dance floor.
The Fed’s been dragging their feet on cuts, but they’re finally out of excuses. Inflation is cooling off (translation: stuff isn’t getting more expensive as fast), and the job market is looking shakier than a house of cards in a windstorm.
Get this: The government just admitted they overcounted jobs by 911,000 over the past year. That’s not a typo – nearly a million phantom jobs that never existed. It’s like finding out your dating app matches were mostly bots.
The Great Stock Reshuffle of 2025
So Navellier took a fresh look at which companies deserve your hard-earned cash and basically gave 93 big-name stocks new report cards. Some got promoted to honor roll, others got sent to detention.
The winners? Eleven stocks got upgraded to “Strong Buy” status – think of these as the valedictorians of the stock world. Companies like Alibaba (yes, the Chinese Amazon), aerospace darling Howmet, and even a Brazilian water company made the cut.
But it wasn’t all good news. Twenty stocks got demoted from “Buy” to “Hold” – basically the financial equivalent of “we need to talk.” And nine poor souls got the dreaded downgrade to “Strong Sell,” which is Wall Street speak for “run away, run away now.”
What This Means for Your Wallet
Here’s the thing about rate cuts: they’re like adding rocket fuel to stocks that already have their act together. Companies with solid fundamentals (fancy talk for “they actually make money and don’t spend it all on office ping-pong tables”) tend to soar when borrowing gets cheaper.
September is usually when the stock market goes to therapy – it’s historically a rough month. But this year might be different. Between the rate cuts and what some are calling the “Trump Shock” (a potential economic boom from new policies), we might actually see stocks climb instead of crash.
The smart money is already positioning for this. Institutional investors – the folks managing pension funds and university endowments – are quietly buying up shares in companies with strong fundamentals. They’re basically the cool kids who know which party to show up to before it gets crowded.
The Bottom Line
If you own any of these 93 stocks (and statistically, you probably do), it might be worth checking where they landed on Navellier’s new list. Some of your holdings might have just gotten a promotion, while others might need a performance improvement plan.
The Fed’s rate cut party is about to begin, and like any good party, showing up with the right crowd makes all the difference. Just remember: even the best stock picker can’t predict everything, so don’t bet the farm on any single recommendation. Diversification is still your best friend – think of it as not putting all your eggs in one very expensive basket.