Core Viewpoint - Louis Navellier maintains a bullish outlook for the stock market in 2026, expecting double-digit returns despite concerns about stagflation and recession risks in the U.S. economy [5]. Economic Indicators - Effective tariff rates have increased significantly to 16.8% from 2.4% in January, the highest level since 1935, contributing to rising inflation [3]. - The unemployment rate has risen to 4.6% from a low of 3.4% in 2023, with layoffs exceeding 1.1 million, marking a 54% increase from the previous year [6]. Federal Reserve Actions - The Federal Reserve has been on the sidelines but cut rates at three consecutive FOMC meetings in September, October, and December due to job losses [3]. - Navellier argues that the Fed should cut key interest rates four more times in 2026 to achieve a neutral rate, suggesting that further cuts may be necessary if deflationary pressures increase [7]. Market Outlook - Despite various economic challenges, Navellier believes that the headwinds from tariffs and inflation are temporary, paving the way for profit-friendly rate cuts, higher GDP, and share price gains [4]. - The forecast for 2026 includes expectations for another year of double-digit returns, contrasting with prevailing bear-market concerns [5].

Market Trends & Industry Dynamics - China's property market downturn will continue [1] - The downturn will worsen deflationary pressures [1] Potential Risks & Opportunities - Former Finance Minister Lou Jiwei called for more stimulus to cushion growth [1]

Industry Performance - China's industrial companies experienced a profit decline for the third consecutive month [1] - Deflationary pressures and intense competition among producers are intensifying economic strain [1]