Editor's note: Louis Navellier, chairman of Navellier Associates, shares his investment outlook for the months ahead along with his top picks for CNBC Pro's Platinum Portfolio.
The stock market is now facing tremendous cross currents. The two best-performing stocks in 2015, Netflix and Amazon.com, trade at 316 and 917 times trailing earnings, respectively. They are unquestionably in a "valuation bubble" that is likely to be pricked.
A "dividend bubble" also formed under energy stocks as the ETF industry pushed high dividend yields. But now at least one major energy company, Kinder Morgan, has started to cut its respective dividend.
The dividend bubble is fizzling fast.
Due to the chaos in the energy industry, the biggest bubble that has already burst is in high yield. With a serious credit crunch now underway, it may well spread beyond the energy patch.
If these three bubbles were not enough of a distraction, the other conundrum the stock market is facing pertains to negative sales and earnings.
The one thing that has me especially optimistic heading into 2016 is that indexing is dead, since index investors tend to not pay attention to fundamentals.