By Louis Navellier

The world seems to have been turned upside down, and we are suddenly all living in “Opposite Ville.”

Let me elaborate. First, the September inflation data looked horrific, but Treasury yields declined in a historic reversal. Second, many AI and data center stocks announced strong sales and earnings but were punished on mythical cash funding fears that have not materialized. Also, the Trump administration asked Ukraine President Zelensky to stop attacking Russia’s energy infrastructure, but Zelensky continued to attack Russia and then ran to Brussels to seek EU support for his continuing attacks on Russian energy.

This trip to “Opposite Ville” cannot persist forever, especially with today’s election ending the uncertainty and putting a halt to most of the Chinese anti-AI bots. I remain immensely proud of our fundamentally superior stocks and apologize that the Chinese bots have taken over the Internet and news media with a negative narrative about the AI boom, even while we enjoy another stunningly powerful earnings season.

I realize parts of the world are in a mess, but that applies more to Europe and China than America, which is an oasis for global capital. The U.S. dollar remains very strong due to our GDP growth as well as the fact that we do not have the level of social unrest that is undermining some of the largest economies in Europe. As the EU struggles, I expect the international capital flight to America in 2027 to be relentless.

Here are the most important developments recently and what they mean:

– This is expected to be a big rebound week. Apple (AAPL) announced that its latest quarterly revenue rose 12% to $114.48 billion and its operating earnings rose 14% to $2.10 per share. Apple posted a 0.9% revenue surprise and a 5% earnings surprise. The big news is that Apple’s free cash flow rose by $136 billion in its fiscal year, so it has plenty of money to spend on AI, potential acquisitions, etc.

– Palantir Technologies (PLTR) announced that its third-quarter revenue surged 96% to $2.31 billion and its operating earnings rose 95% to 44 cents per share. Palantir Technologies posted a 6.5% revenue surprise and a 7.3% earnings surprise. The good news is that Palantir Technologies’ commercial revenue rose 148% to $984 million, so it is becoming less dependent on government contracts.

– Any dips in Apple and Palantir Technologies are great near-term buys. We also have earnings announcements from Advanced Micro Devices (AMD) and Super Micro Computer (SMCI) to look forward to this week.

– What rattled some investors last week is that Amazon (AMZN), Google (GOOG), and Meta (META) all reported declining cash flow in the third quarter of $42.4 billion, $9.1 billion, and $2.12 billion, respectively, due to higher AI spending. While many on Wall Street see this as a negative development, in my opinion, the heavy AI spending is incredible news for AMD (AMD), Nvidia (NVDA), Micron Technology (MU), and all the memory companies, plus all the data center-related companies. Furthermore, Google’s cloud business surged 103% in the third quarter, while Amazon’s much larger AWS cloud business rose 39.3%, so clearly the data centers that feed the cloud computing industry are expanding at a rapid pace.

– I am fully expecting that we will have an “early January effect” in November that will set the stage for a potentially even stronger January effect in the New Year. Another Russell realignment to its 1000 and 2000 indices in November will also help to create buying pressure under many stocks. I should add that 2027 is the third year of a Presidential election, which is the best-performing year for the S&P 500 during the Presidential election cycle. I also expect that in the wake of the Conference Board’s strong report on consumer confidence, investor confidence will improve.

– It is now time to focus on the holidays, which are a happy time of year for most folks. As we focus on family, friends, football, and food, all the bogus narratives about AI and data center stocks are expected to largely disappear. That is just one reason that November is a seasonally strong month. We are also in the midst of robust GDP growth that appears to be accelerating as tech companies announce rising order backlogs.

– As evidence of strong GDP growth, the Institute of Supply Management (ISM) reported that its manufacturing index rose to 55.5 in October, up from 54.5 in September. The ISM manufacturing index was also well above economists’ consensus estimate of 54.5. This was the second-highest monthly reading in the past four years and the tenth straight month of expansion in the manufacturing sector. Fully, 12 of the 15 industries surveyed by ISM expanded in October.

– The upcoming G-20 meeting in Doral, Florida is shaping up to be very tense. At a preliminary meeting in Atlanta, top diplomats and envoys from China and Russia were not able to agree on much of anything. As an example, these rifts have apparently scrapped plans for a group photo session, since European diplomats objected to being photographed with Sergey Lavrov, Russia’s top diplomat. Secretary of State Marco Rubio chaired the Atlanta meeting, and it will be interesting what, if anything, the G-20 will be able to agree on and whether there will be a joint statement. Obviously, Rubio is a skilled negotiator, but the European funding to Ukraine to bomb Russian energy facilities is a rift that may not be able to be resolved.

In conclusion, as investors, we can choose to be manipulated by Chinese bots and naïve politicians repeating Chinese propaganda. Or we can choose to take the bull by the horns and control our own destiny. As always, our best defense is a strong offense of fundamentally superior growth stocks.