Eric Fry and Louis Navellier of InvestorPlace recently released a presentation dubbed “Tech Crisis 2022,” where they detailed their latest stock market predictions for 2022.
In particular, they discussed Eric Fry’s “Technochasm” thesis, which centers around accelerating technological innovation and adoption.
And despite fears of increasing inflation, interest rate hikes, and the recent selloffs, they are both very bullish on certain tech and growth stocks in the year ahead.
Given Fry and Navellier are both tech-investing gurus, it’s hard to imagine them ever being bearish on the tech sector. But they did make a compelling argument about why they’re bullish and specifically mentioned two stocks they’re tracking.
In this post, I’ll walk you through what they’re predicting for 2022, show you what stocks they mentioned, and give you an overview of the service they’re pitching.
Tech Crisis 2022: All You Need to Know About Louis Navellier & Eric Fry’s 2022 Predictions
Tech Crisis 2022 is an event (AKA video presentation) featuring Louis Navellier, Eric Fry, and host Miriam Isa that takes place on the InvestorPlace website.
Eric Fry began by talking about how he’s been warning Americans about the Technochasm for over two years and how the Technochasm is now entering a “new critical phase.”
What is the Technocahsm?
I first heard of the Technochasm in a different Eric Fry presentation I wrote about called the Wealth Acceleration Summit. In short, it centers around the idea of a technological “chasm” (or divide), which Eric Fry says is “splitting the world and stock market in two.”
According to Eric Fry, it explains why some companies are growing faster than ever, and others are going bankrupt in the blink of an eye.
“The Technochasm explains how technology is splitting the world and stock market in two…
And creating a deep chasm or divide between the best performing and worst performing stocks in the market.
The Technochasm explains why certain companies are growing faster than ever before, while others are going bankrupt in the blink of an eye.”
Why does he believe this is happening?
It all comes down to exponential progress in both tech innovation and adoption.
“At the heart of my Technochasm thesis is something called exponential progress.
More specifically, how exponential progress impacts innovation and rate of adoption.”
Eric Fry argues that technology is accelerating exponentially (non-linearly) and that this is separating successful companies and investors that are embracing this change from those that are ignoring it, especially as we enter the “next phase” of the Technochasm.
According to Louis Navellier, “Phase One” of the Technochasm involved things like wireless internet, smartphones, and cloud computing, which were big in the mid-2000s.
Whereas he says that a “new phase has been emerging” over the past couple of years, which includes tech like artificial intelligence, 5G, the Internet of Things, and driverless cars.
Eric Fry suggests that, as a result of the Technochasm, half of today’s Fortune 500 companies will be replaced by startups we’ve never heard of, and while this will no doubt be less than ideal for some, he says there’s a “massive upside” for those who know what’s happening.
“Half of today’s Fortune 500 companies will die off in 10 years and be replaced by startups we haven’t even heard of yet.”
“There’s a massive upside to the Technochasm for the entrepreneurs and investors who understand what’s happening.”
What he’s saying could well be true, but with recent selloffs in tech and growth stocks, rising inflation, and interest rate hikes, many investors are spooked. And both Louis and Eric address this in the Tech Crisis 2022 event, so let’s dig into that now.
Eric Fry and Louis Navellier’s thesis on inflation
During the presentation, Eric Fry pointed out that “inflation has become a serious problem in America” and that many are concerned about rising rates.
However, he also says that technology will keep marching forward despite this:
“But despite the immediate challenges that face the market, technology and innovation will keep marching forward…if not sprinting forward.”
Eric Fry explains that right throughout history, technology innovation has continued despite economic ups and downs, inflation, or any other factor.
What about Louis Navellier?
Regarding inflation, Louis Navellier explains that technology is “the most powerful antidote” to inflation because it increases productivity while lowering the cost of production.
“A lot of people don’t realize this, especially investors, but technological progress is the most powerful antidote to inflation, not the Fed.
Technology has drastically boosted productivity while simultaneously lowering the cost to produce goods and services.”
He makes a good point, too. Examples of technology bringing costs down and therefore being deflationary are everywhere. For instance, look at what Uber did to the taxi industry, what Airbnb did to hotels, and what Netflix did to video rental stores like Blockbuster.
And as Louis Navellier points out, automation is a trend that will likely continue to grow, which means companies will be spending less to make money.
“With each passing year, the automation economy continues to grow, and companies will continue to make more money while spending less.”
Long story short, Navellier believes that as new technologies “upgrade” the global economy, inflation will settle down, and innovative tech stocks will prevail.
“So, as new technologies like AI, 5G, and the blockchain upgrade the global economy, inflation will be tamed, and innovative tech stocks will win big.”
Of course, nobody has a crystal ball. Inflation could keep rising in the short-to-medium term. But technological deflation, something I first learned about through a book called The Price of Tomorrow by Jeff Booth, is a strong force that will likely win. The only question is when.
What about interest rate hikes?
Eric Fry’s thesis regarding interest rate hikes, according to the presentation, is that it has been priced into the markets for months.
And he suggests that, while rising rate expectations could cause volatility over the next 12 months, it will also present opportunities.
“The reality is the markets have been pricing in numerous rate hikes for months.
It should hardly come as a surprise anymore.
But even with this expectation, the markets will obviously remain very volatile over the next 12 months.
Which will present investors with great opportunities in select corners of the market.”
Louis Navellier shares a similar viewpoint.
He says that worrying about major Fed hikes is “like worrying about a bogeyman hiding under your bed.” And he believes that if rate hikes threaten the economic recovery, we could see “very easy money policies come back in a nanosecond.”
What Trends Are They Watching for 2022?
Eric Fry believes that “right now the FOMO trade is dead” and suggests that it’s time to look at things like revenue, income growth, and profit margins.
He also says that what excites him and Louis now are “small, innovative companies at the heart of the new multitrillion-dollar trends that are reshaping our future.”
For example, trends like AI and 5G.
And Louis Navellier says that right now is a good time to buy promising growth stocks and that selloffs should be viewed as a “gift.”
In other words, he sees market declines as a potential buying opportunity.
“We believe that right now is an incredible time to buy some of the world’s most promising growth stocks.
We believe you should view the selloffs that have taken place this year and the insane volatility as a gift…
… As the last chance you’ll get in your lifetime to buy some select companies with astronomical upside potential… for very good prices.”
Eric Fry summed up his thoughts on his 2022 prediction by stating that there are three main points he recommends everyone watching the “Tech Crisis 2022” presentation understand.
First, he recommends being greedy when others are fearful:
“First, you need to remember that one of the best ways to make money in the stock market is to be greedy when others are fearful.
I know this saying is a bit cliché but applying this simple mindset to your investing can work wonders for your wealth-building potential.
Fear is everywhere right now…which tells me there’s lots of opportunity.”
Second, he talked about the importance of buying stocks at the right price:
“You will likely always make your money when you buy not when you sell.
This just simply means that the price you pay for an asset is the biggest factor that determines how large your profit will be.
It follows the saying ‘buy low and sell high.’
It’s important to never overpay for an investment, even if it’s an innovative growth stock.
If you can continuously buy great companies at great prices throughout your investing career, you’re likely going to succeed.”
And third, he reiterated the importance of the Technochasm:
“Your success at building wealth in the 21st Century comes down to understanding the Technochasm phenomenon…
If you remember one thing from this event, it’s that innovation never sleeps.
It powers ahead 24 hours a day, seven days a week…no matter what else is happening in the world.
If we want to build wealth, we need to strap ourselves to this unstoppable force…and then ride it to investment success.
The Technochasm phenomenon will create more than $68 trillion in new wealth over the two next decades or so…”
So, he’s more or less suggesting that now is a good time to buy high-quality, innovative tech stocks given prices have fallen recently. That’s my take, anyway.
And Louis Navellier summed up his thoughts in the Tech Crisis 2022 video by talking about the importance of the network effect and how this is what he and Eric look for.
“If your goal is to rack up enormous investment gains, then you must focus your attention and capital on the innovative companies that will benefit from something called the network effect.”
In short, a network effect is a self-reinforcing cycle where adding more users to the network makes the network more valuable, which attracts more users, and the cycle repeats, resulting in massive growth.
And according to Louis Navellier, this is what he and Eric Fry look for when trying to find “the fastest growth stocks of tomorrow.”
Recommended: Go here to see my #1 rated stock advisory of 2022
What Stocks Are Eric and Louis Recommending?
During the Tech Crisis 2022 presentation, Louis and Eric say they are bullish on four stocks each. And unfortunately, they don’t reveal what these are.
Nor do they provide any tangible clues about them.
Instead, they detail their stock picks and research in the following reports:
- Eric Fry’s report (“Four Phase 2 Stocks for the Next Tech Boom”).
- Louis Navellier’s report (“PHASE 2: Four Top-Rated Growth Stocks for 500% Gains or More”).
And the only way to access these reports is to sign up for a subscription to The Speculator, a stock advisory Eric Fry runs that they’re running a sale on for $1,799.
I’ll discuss that more shortly, but first, I want to give you the heads up about two stocks they shared in the presentation for free.
Eric Fry’s pick (MAXR)
Eric Fry’s “Tech Crisis 2022” pick is Maxar Technologies (ticker: MAXR).
“One stock I think our viewers should consider buying is a company called Maxar Technologies.
The ticker symbol is MAXR”
This company is in the space technology industry and, according to Eric Fry, “built the infrastructure that helped send astronauts to the moon.”
He also says they provide data critical to global 5G deployment and believes that its earnings growth could “rocket higher” in the future.
Louis Navellier’s pick (WIRE)
Louis Navellier’s pick is a U.S. company called Encore Wire Corp (ticker: WIRE), a manufacturer of copper wiring.
“One company I like right now is a U.S. company called Encore Wire Corp.
The ticker symbol is WIRE”
According to Navellier, the company has a “strong foothold” in industries like solar, electric vehicles, and battery storage. And he says that despite its share price taking a hit (like most stocks) it has increased its revenues substantially.
So, that’s two of their picks.
But Eric and Louis are interested in eight other stocks, which they detail in the reports I mentioned earlier that come with a subscription to The Speculator.
What Is The Speculator?
The Speculator is an InvestorPlace stock advisory service edited by Eric Fry focused on technology trends like the ones he discussed in the Tech Crisis 2022 video.
And according to Eric Fry, it’s where he publishes his “detailed analysis and highest conviction buy recommendations for the Technochasm.”
He also claims it can produce both short-term and long-term gains:
“It’s where I recommend the truly dynamic, innovative stocks that can produce outsized investment gains over the short-term, and extreme wealth over the long term.”
Aside from stocks, the InvestorPlace website says that Eric Fry shares recommendations related to options, bonds, commodities, and currencies if he believes the trade “offers the ideal risk-to-reward profile.”
As part of the Tech Crisis 2022 presentation, you also get one year’s access to Louis Navellier’s advisory service, Accelerated Profits.
According to InvestorPlace, Louis Navellier uses his “proprietary stock-rating system” to find stocks with strong momentum and fundamentals with this service. And it covers “small, innovative tech stocks that are quickly growing revenue and profits.”
Aside from that, you get the two reports I mentioned earlier that detail four stocks Louis is bullish on and four stocks Eric is interested in. And a couple of other reports that detail different stocks they are tracking.
How much does it cost?
The Speculator normally costs $3,000 per year, but as part of the Tech Crisis 2022 presentation, it’s $1795. And you get a year’s access to Accelerated Profits, so the saving is pretty substantial when you factor that in.
The only downside is that there are no refunds on this offer, although InvestorPlace does have a “Beat the S&P 500 by 10X or More” policy in place:
“If the 7 new buy recommendations in The Speculator don’t produce an average gain in our model portfolio that is at least 10 times greater than what the S&P 500 Index produces over the next year, we’ll provide a second year of The Speculator service at no charge.”
Either way, there’s no guarantee you’ll make money following their stock picks. And it’s possible you could lose money, as with any investment research service.
But if the service doesn’t live up to what it says above, you could end up getting a second year of The Speculator at no extra cost which is cool.
Is it legit?
I haven’t joined either of these services, but I am familiar with Eric Fry and Louis Navellier; I’ve written about some of their stock picks and other services on this site.
I’m also familiar with InvestorPlace. It’s a reputable, Baltimore-based financial publishing company that sells many different advisories.
So, to answer the question, yes – the service is legit. And as I’ll now explain, both Eric Fry and Louis Navellier are genuine experts, so while there’s no guarantee you’ll make money following their investment ideas, they are legit and both have a solid track record.
Who Is Louis Navellier?
Louis Navellier is a professional money manager and lead editor of InvestorPlace’s flagship Growth Investor service. He also edits Breakthrough Stocks, Accelerated Profits, and others.
All told, Navellier has almost four decades of experience, and his specialty is helping investors make money from growth-related stocks. He’s also known for his work in quantitative analysis and for outperforming the S&P 500 for many years.
Aside from stock picking, he runs a money management firm called Navellier (AKA Navellier and Associates). According to the InvestorPlace website, the firm manages over $5 billion in mutual funds and institutional accounts.
And he’s published a best-selling book called The Little Book That Makes You Rich and been featured on financial media, including Fox Business and CNBC.
Who Is Eric Fry?
Eric Fry also works with InvestorPlace, and he runs a well-known advisory called Fry’s Investment Report and another service called The Speculator.
His area of expertise is similar to that of Louis Navellier in that he’s known for picking stocks at the forefront of major emerging trends. According to InvestorPlace, many of his picks have seen 1,000% gains over the years, to the point he earned the nickname “Mr. 1,000%.”
Of course, that doesn’t mean his picks will help you make money. And not all of his stock picks have worked out that well. But like Navellier, Eric Fry is a genuine expert.
He has over 20 years of experience, and before getting into financial education, he was a money manager who specialized in international equities.
The Tech Crisis 2022 event, which first aired on March 16, 2022, is an investment presentation where Eric Fry and Louis Navellier discuss their outlook on tech and growth stocks for the year ahead. And they each shared a stock pick.
To recap, they both recognize that things like inflation, interest rate hikes, and stock market declines have caused panic, but they believe there’s a lot of opportunity in the market if you know where to look.
In particular, they are bullish on “Technochasm” stocks, which are essentially companies at the forefront of emerging tech trends like 5G, artificial intelligence, and automation.
At the end of the day, nobody knows what will happen next in the market. Some suggest we’re headed for a recession; others think inflation will run higher and hard assets are the only way to go, and yet others are bullish on tech stocks.
But either way, it was an interesting presentation. And I think it’s worthwhile to get different perspectives on these things, especially from veterans like Fry and Navellier.
What do you think? Are tech stocks a good idea right now? Or is now a time for being conservative and “playing it safe?” Let me know in the comments below.