Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Tyler Laundon reflects on equity performance in the first quarter, which ends Monday, and the impact of continued uncertainty stemming from Trump’s tariffs. He breaks down some of the projections after the auto tariffs were announced yesterday then touches on the latest inflation expectation data, which is responsible for Friday’s market retreat. Tyler flags typically conservate stocks, like dividend payers, utilities and insurance stocks, as holding up. But concedes that it’s been very challenging in the growth stock realm. He highlights a few names that are bucking the trend, as well as a number of gold stocks, but concludes that its still time to remain defensive, at least through the end of Q1 and Trump’s next tariff announcement.
Stocks Discussed: AXZGN, GDXJ, AGI, RGLD, PPTA, FNV, WPM, PRMB
Cabot Street Check (Podcast)
This week on Street Check, Larry Cheung joins for an extended conversation about investing in Chinese stocks. We discuss his recent experience in Hong Kong, the importance of catching early momentum in Chinese stocks and indexes, the evolution of China’s stance on AI, and the individual stocks he likes best right now (and how to trade them). To learn more about the offer mentioned on this episode, visit cabotwealth.com/street. For more of Larry’s insights, follow him on YouTube, Substack and social media @larrycheungcfa.
Cabot Summit: Investing Masterminds 2025
Join us in Salem, Masachusetts this summer from August 13-15 for our Investing Masterminds Conference and unlock powerful market strategies, top stock picks, and expert analysis. Engage with the Cabot Wealth analysts and connect with other investors to share insights and strategies. Click here to Register.
Cabot Webinar
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts is now available for you to listen to at your convenience—click here for access. This private call with our analysts is one of your exclusive Cabot Prime Pro member benefits.
RECENT BUY AND SELL ACTIVITY
This table lists stocks bought or sold in the most recent Issues or Updates.
Portfolio Updates This Week
Cabot Growth Investor
Bi-weekly Issue March 20: After a punishing three-week decline, the market has stabilized a bit, and we’ve actually seen some secondary positives, too, with a short-term positive divergence in our Two-Second Indicator, falling Treasury rates and some big dips in investor sentiment. That said, both the markets intermediate-term and longer-term trends are pointed down now, and while there are some resilient stocks out there, most names are also buried beneath key levels. A bottom-building process could be underway, and big-picture, we don’t view this downturn as unusual (see more on that in today’s issue), but for now, we’re staying defensive with a big cash hoard, waiting for the market to change character.
Bi-weekly Update March 27: WHAT TO DO NOW: Remain defensive. The market has gotten off its duff somewhat this week, but as seen the past couple of weeks, there’s still plenty of selling and news-driven action out there. We do think it’s possible a repair process has begun, but right now, the trends of the major indexes and most stocks are pointed down, so we continue to advise a defensive stance. We’ll again stand pat tonight with our four small-ish positions and our big cash position, though we’ll be on the horn if we have any changes (including possibly re-jiggering the portfolio a bit) in the days ahead.
Cabot Top Ten Trader
Weekly Issue March 24: Nobody is going to claim that the past couple of weeks have been perfect, but given where things stood following the market’s three-week mini-crash, the recent action has been constructive; short term, we’d expect more upside testing, too. That said, on an intermediate-term basis, there’s much more work to do, as the trends remain down, most indexes have recouped easily less than half of their prior declines and the majority of stocks are actually still below 200-day lines. We are going to bump up our Market Monitor a notch to a level 4 to respect the action, but overall we remain cautious as we wait to see how this bottom-building process develops.
This week’s list has something for everyone, though all of them have shown some intriguing strength of late as the market has found support. Our Top Pick has pushed back to its old highs on great volume after some positive news last week.
Movers & Shakers March 28: The major indexes hit a low on March 13 and bounced for eight days through Tuesday, though that bounce has run into another wave of selling, with the major indexes retrenching the past three days. Overall, the major indexes are about flat on the week after this morning’s modest down opening.
Cabot Options Trader and Cabot Options Trader Pro
Cabot Options Trader Pro Weekly Update
Cabot Options Trader Weekly Update
Cabot Value Investor
Monthly Issue March 6: U.S. markets are in a tailspin, and previously hard-charging growth stocks are leading the slide. But two asset classes that have often been overlooked in recent years are off to very good starts in 2025: value stocks and European stocks. Having just “retired” a European value stock that reached our price target in last week’s update, today we add a Dutch-based mid-cap with an almost identical profile – but at a time when undervalued European stocks are getting treated like U.S. growth stocks.
Details inside.
Weekly Update March 27: The last two months have felt historically volatile.
Since Donald Trump took office for a second time and immediately started handing out tariffs like they were surprise take-home prizes at an Oprah taping (“YOU get a tariff, and YOU get a tariff!”), the market has been unsettled. And indeed, from mid-February through mid-March, things weren’t simply unsettled – they were bad. Both the S&P 500 and the Nasdaq entered correction territory – the fifth-fastest correction in the last 75 years, in the case of the S&P. Fears of higher inflation and possibly recession have come rushing back to the surface, consumer confidence is at a 12-year low, and interest rate angst is back in full force.
And yet, actual volatility – as measured by the VIX, a.k.a. the “investor fear gauge” – has been … fairly muted?
Cabot Stock of the Week
Weekly Issue March 24: Calm has been restored to the stock market, at least for now. And while stocks haven’t exploded to the upside, it does appear as if a temporary bottom has been put in. With that in mind, today we add a pure growth stock – a cybersecurity play with plenty of momentum, recommended by Mike Cintolo to his Cabot Top Ten Trader audience last week. We also have no sells from our own portfolio, as many of them have been in full recovery mode the last week or two.
Details inside.
Cabot Explorer
Bi-weekly Issue March 27: The markets continue to lack direction and are buffeted by uncertainty regarding tariffs, taxes and spending, debt and conflict, but yesterday came to life as concerns over some of these risks were mollified. Nevertheless, broadening and diversifying your portfolio makes sense to maintain an objective of growth while also being mindful of protecting your wealth.
This brings us to gold - and today’s recommendation.
Bi-weekly Update March 20: I’m in Japan this week as Warren Buffett indicated that his Berkshire is raising its stakes in Mitsubishi, Marubeni, Mitsui, Itochu and Sumitomo. Berkshire’s average holding across the five stocks increased by just over one percentage point to about 9.3%. This comes as financial pundits continue to determine the meaning of why Berkshire has accumulated a massive cash position.
Perhaps Buffett is betting that America’s share of global equity indices may be close to peaking at almost 70%.
Cabot Small-Cap Confidential
Monthly Issue March 6: Today’s addition is a profitable small-cap MedTech company specializing in products to treat peripheral nerve injuries.
Management has a number of growth-oriented irons in the fire. And I think the company could be an attractive acquisition target.
While the sock has been relatively stable in this increasingly volatile market, we’ll still start with a half-sized position, just in case.
Weekly Update March 27: The S&P 600 Small Cap Index is flat over the last week.
The upside move from the extreme oversold conditions that began two
weeks ago has faded as the market grapples with tariff uncertainty.
Cabot Dividend Investor
Monthly Issue March 12: This is the worst market we’ve seen in a while. And the ugliness could last a while.
Tariff talk is all the rage. The economy is slowing. Nobody is sure about inflation or interest rates. It all adds uncertainty. The market had been riding high for more than two years. A comeuppance has arrived. How long will it last and how deep will it be?
During times of maximum uncertainty like this, healthcare stocks are a great place to be. That was the topic of last month’s exquisitely crafted issue. But there is another industry with both defensive and growth characteristics that’s ideal for uncertain times – garbage.
We live in the garbage capital of the world. This country generated 292 million tons of waste in 2018, up from 251 tons in 2012, and nearly double the waste produced in 1980. That’s enough waste to produce a pile long enough to go to the moon and back – 29 times. And that’s every single year. Waste services are big business. In 2023, the U.S. waste management services industry generated $145 billion in revenue. That was up from $137 billion the prior year and that number is likely to keep rising.
Garbage will continue to pile up regardless of where interest rates go, the level of economic growth, or the fallout from tariffs. The market could soar, or the world could go to Hell in a handbag. Either way my wife will nag me every week to take out the garbage.
Bank on a company with certain earnings and revenue in uncertain times. Defensive stocks tend to outperform during and after volatile markets. In this issue, I highlight a company that is the unquestioned leader in waste services. The stock has a strong track record which could get even better in the years ahead.
Weekly Update March 26: The market has been recovering since it fell into correction territory earlier this month. The S&P was up for the week last week for the first time in a month and Monday was a strong day. But we might not be out of the woods yet.
Even if the bottom is in (which it might not be), it is unlikely that stocks can generate lasting upside traction until there is more clarity on the tariff situation. But the market really hasn’t been as bad as it might seem.
Cabot Early Opportunities
Monthly Issue March 26: The first quarter of 2025 has been interesting, to say the least. We wrap it up with the March Issue featuring names across the software, security, coffee chain, specialty metals and sports betting markets.
A few familiar faces, and a few new ones, should mean something for everybody. Details inside.
Cabot Profit Booster
Weekly Issue March 25: Despite some more worrisome price action throughout the week, the three leading indexes were able to eke out gains last week. For the week the S&P 500 gained 0.5%, the Dow rallied 1.2% and the Nasdaq advanced by 0.2%.
Cabot Income Advisor
Monthly Issue March 25: After falling into correction territory earlier this month, the S&P 500 came off the bottom and has been trending higher. Is that the end of the selling? I don’t think the market has decided yet.
Some tariff clarity could arrive soon. Stocks rallied strongly to start the week partially on news that pending tariffs will be more “targeted.” Technology stocks also rallied on the perception of higher-than-expected AI demand. But the market is very headline sensitive. And the headlines are likely to keep on coming.
If I had to bet, I would say the market probably made the bottom for now and is more likely to trend higher. But I don’t have a high degree of confidence right now. A couple of negative headlines could send stocks plunging to new lows.
There are some select stocks that are actually near the 52-week high. I’m more comfortable selling a covered call on a stock with recent strong performance than initiating a new stock position at this point. In this issue, I highlight a covered call for the biopharmaceutical company AbbVie Inc. (ABBV).
Weekly Update March 18: The S&P 500 officially hit correction territory last week, down 10% or more from the high. While the bulk of the selling might be near the end, stocks are unlikely to gain significant and lasting upside traction until current uncertainties dissipate.
Last week’s inflation report was good. The CPI number was better than expected and showed a decrease in the level of price increases for the first time in several months. The economy appears to be slowing, but investors are likely okay with that if there isn’t a recession. Those two things add up to lower interest rates. But the tariff uncertainty seems to be preventing any kind of positive new narrative from taking shape in the market.
Cabot Turnaround Letter
Monthly Issue March 26: In uncertain times like these, it’s only natural that defensive-minded investors are gravitating to healthcare stocks. After all, this space is characterized by consistent demand for essential products and services that millions rely on, regardless of the state of the economy. (Additionally, many of the companies in this category offer dividends that can be considered quite attractive during market sell-offs.)
While the sector itself has only lately returned to favor, a number of consumer-facing healthcare companies remain out of Wall Street’s good graces and under the public’s radar—including some which provide critical staple products for the everyday needs of consumers.
One of those companies is today’s turnaround recommendation.
Weekly Update March 28: In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including GE Aerospace (GE), Paramount Global (PARA), SLB Ltd. (SLB), Starbucks (SBUX) and UiPath (PATH).
This month’s catalyst report features a mixed bag of longer-term attractive turnaround candidates in industries ranging from car rentals to dental equipment to semiconductors.
Cabot Cannabis Investor
Monthly Issue March 26: The cannabis sector remains unloved as investors abandon hope that President Donald Trump will come through on his campaign promise to reschedule the drug.
Moving cannabis to Schedule III from Schedule I under the Controlled Substances Act would help cannabis companies by obviating an IRS rule that prohibits them from deducting operating expenses (Rule 280E).
I continue to think Trump will live up to his “promises made, promises kept” mantra. It will take some time, because he’s obviously active on many fronts, and cannabis reform does not rise to the level of top priority. Polls continue to show the majority of voters favor reform, particularly younger voters. So, there’s a favorable political angle for conservatives in cannabis reform. Cannabis sales growth continues to be particularly strong (6.2%) in Missouri, a red state.
Monthly Update March 12: It’s cannabis company earnings season. So, I highlight fourth-quarter results in this issue.
Before we get to the details, here are the key takeaways from earnings reports:
* Price compression continues, creating an ongoing “Hunger Games” environment in which only the financially strong will survive, given the debt levels at a lot of cannabis companies. Much of this debt comes due over the next two years. Bankruptcies might be the clearing event that helps bring an end to price compression. None of our names appear to be at risk, but no guarantees.
Cabot Money Club
Monthly Magazine April: Buffett, Graham, Icahn, Templeton ... these are just a handful of seven legendary investors that have helped define what investing success means for generations. In this month’s issue, we’ll investigate the strategies that made these investors titans of the industry, what they have in common, and how you can adopt those strategies to achieve greater profits in your own portfolio.
Stock of the Month March 13: I don’t know about you, but these market swings are definitely making me dizzy! Tariffs, inflation, the reemergence of recession fears—are all serving to rattle investors.
This morning’s inflation report, however, did push us into somewhat positive territory, with February’s CPI rising 0.2% (2.8%, annually), a bit less than the 0.3% forecast and considerably better than the 0.5% rise in January.
Also, on the good news front, mortgage rates have finally begun to decline, with the average 30-year interest rate now at 6.72%.
Ask the Experts
Prime Question for Mike: Hi, I was reading a newsletter that states the Dow Theory turned bearish on March 14. Put any credence in that indicator? Thanks
Mike: (The Dow Theory is) not part of our system – but our Cabot Trend Lines (long-term trend) turned negative a couple of weeks ago, so it sounds like it coincided with that. Doesn’t predict anything, but reaffirms a defensive posture makes sense for now.