Based on the full parking lot at the Gaylord Palms Hotel in Orlando, there was no doubt that the World Money Show enjoyed record registration earlier this month. The World Money Show is the only place where people like you and me have access to world-class investment professionals who reveal their recommendations and strategies for profiting in today's market. The Orlando show proved the point that investors want solid information about what is going on in the stock market–especially in the housing and financial sectors. Of course, when the conversation led to housing and bank stocks, folks inevitably talked about a possible recession. Interestingly enough, one question that was asked in several different sessions was: "Can we talk ourselves into a recession?"

The popular consensus was yes–we can all jinx ourselves. And if consumers become persuaded by all the gloomy headlines and decide to seriously cut back their spending, our economy will slow down to a halt, and the nation could fall down the deep, dark recession hole.

Am I worried? Well… not yet. The Federal Reserve has already slashed interest rates and loosened monetary policy. Keep in mind that it takes a few weeks for the economy to feel the effects of changes from the Fed, so it's no surprise that many are worried. I believe that their attitude will change for the better once the new lower interest rates work their way through the economy. Low interest rates spur spending. And when consumers can spend–we're all happy!

So which expert was truly a show standout? I have too many favorites to count, but I have to say that Louis Navellier, editor of Blue Chip Growth Letter had a unique perspective on the free fall in financials and buying bloodied bank stocks.

Buck the Banks

Louis Navellier is a bull at heart. But I was surprised to hear that he strongly objects to the bulk of others speaking in Orlando who told folks that it was time to go "bargain-hutting" in financial stocks–especially major banks.

Louis believes that profits have essentially been wiped out in the financial sector and are now back to where they were more than 20 years ago. He sees continued write-downs (mostly due to escalating mortgage woes) over the next five to six quarters. Ouch. In fact, he's betting that the housing market may not improve until late 2009 due to excess inventories.
Are Financials "Free-Fallin"?

During several different sessions at the Money Show, Navellier commented that much of the free fall in the operating profits of the financial sector is attributable to the collapse in derivative securities, especially Collateralized Debt Obligations (CDOs) and Structured Investment Vehicles (SIVs).

The only bright spot that he could see is that the massive multi-billion write-downs from major banks and financial institutions might get a bit smaller in the upcoming quarters. But Navellier's not betting on it. In one session, he even argued that the "seismic shift" out of value and into growth would continue to persist due to the fact that the Russell value indices are dominated by financial stocks (30% to 38%), predominately banks.

Say Bon Voyage to Bank Stocks

Navellier believes that due to the overweighted "anchor" that financial stocks will likely continue to have on the U.S. economy, it looks like the overall stock market will likely have to "retest" its recent lows and then trade within a wide range.

So what does he recommend investors do now? Sit tight and wait out the storm with A-rated blue chip stocks that will keep your portfolio afloat. Then, after all of this volatility finally dies down, look for solid buying opportunities in black and white. He expects the fall sometime between mid-March and early May, after the Fed makes more rate cuts, on March 18th. Until then, he is telling his subscribers to bank on "A"-rated stocks from his Blue Chip Growth portfolio. To see who made the grade this week, click here for your free trial to Louis Navellier's PortfolioGrader Pro!

Louis Navellier has been beating the market 3-to-1 for 10 years now. Find out how you can join in with his large-cap focused advisory Blue Chip Growth. Increase your profits by 50%–guaranteed!  Plus, when you sign up for your no-risk trial subscription today, you'll  receive 7 of Navellier's latest special reports, including, 10 Top Megatrend Stocks for 2008 and Beyond–FREE! Join today!