Louis Navellier warns of biggest mistake investors can make in 2026
The biggest investing mistake of 2026 isn't buying the wrong stock. It is staying too bearish.
As an example, the criminal conviction of short seller Andrew Left, who used to lead Citron Research for a "long-running market manipulation theme," has thrown cold water on short selling. I was certainly no fan of Citron Research, which attacked Super Micro Computer (SMCI) and Sezzle (SEZL) before the short seller shut down.
The primary reason that I rode through the gyrations that Citron Research caused for SMCI and SEZL was that the analyst community never cut their earnings estimates for these stocks, and the fundamental attacks were bogus.
Citron Research tied to prick bubbles in stocks that were going parabolic with bogus innuendos and alleged insider information. Since Citron Research predominantly used social media to spread its lies, the conviction of Left is a landmark case that will likely cause most short sellers to retreat, which is good news for the market, and that means good news for investors.
Related: Nvidia CEO Jensen Huang delivers sharp message to major customer
The bull case gets stronger
One thing that doesn't fit with the bearish narrative is the latest manufacturing data. The Institute of Supply Management (ISM) announced that its manufacturing index rose to a healthy 54% in May, up from 52.7% in April, the fifth consecutive monthly increase in the ISM manufacturing index. Fully 16 of the 17 manufacturing industries that ISM surveyed reported an expansion.
The other thing we have to look forward to is the anticipation of 5% to 6% annual GDP growth that should arrive no later than the third quarter. As evidence of accelerating GDP growth, the Commerce Department recently announced that durable goods orders surged 7.9% in April, up from a 1.3% increase in March. Economists were expecting a 3.5% annual surge, so the April durable goods report was much stronger than anticipated. Transportation orders surged 21.5% in April. Excluding transportation, durable goods orders rose at a robust 1.1% pace in April, which was much stronger than economists' consensus estimate of a 0.5% increase.
The booming order backlog for companies associated with data centers exploded in the first quarter, so it now looks like the AI-related data center boom will persist for at least the next three years. This data center boom, combined with the onshoring boom for semiconductors, pharmaceuticals, and the auto industry, bodes well for explosive GDP growth.
The trade deficit is shrinking due to booming energy exports, and this is also expected to boost GDP growth. Retail sales have been promising in the past couple of months, so that is another positive GDP boost. But by far, the biggest boost to GDP growth is productivity that should be at least 3% per year and may rise to 4% in 2027 and beyond, as AI makes America more productive.
We remain in the best investment environment for growth stocks since the Internet boom back in 1999. Use dips as an opportunity to buy fundamentally strong stocks. This is not the time to be sitting on the sidelines. This is a wonderful time to be an investor, so hang on and enjoy the ride.
Related: Louis Navellier sees major stock catalyst coming in June
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This story was originally published June 5, 2026 at 9:12 AM.