The weakness that was troubling the market before last Wednesday’s unanticipated holiday worsened when markets opened again Thursday, and the major indexes are back at their correction lows. I was optimistic when the market strengthened two weeks ago, for now it’s time to defensive...
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With our mix of conservative, growth-oriented and high-yield investments, our portfolio continues to do well. Most of our non-Safe Income stocks are still on Hold, so it’s time to start thinking about becoming more aggressive, if the market becomes more constructive. But we want...
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Another Dow 30 Shakeup is Coming
November brought some significant news about General Motors (GM) and United Technologies (UTX), while General Electric (GE) continues to invite investor inquiries. As our portfolio stocks experience share price recoveries alongside the broader market, in the aftermath of October...
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The stock market slump that started last week has intensified in recent days, bringing the major indexes back to their October lows. I do have one rating change today, selling one third of a position, but the rest of the portfolio is in shape...
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After spiking last Wednesday, the major indexes have, predictably, pulled back over the past week. The market is likely to try to shake out weak hands a few more times before starting a sustained new uptrend. I have no rating changes today, but on...
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The market has rallied since the last update; all sectors except for utilities are higher over the last five days. Materials, energy, financial and consumer discretionary stocks have led the rebound. While it’s certainly possible that the end of October marked the end the...
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Apple (AAPL) Redux
Welcome to November, holiday season, winter’s coming, and mid-term elections! As if a stock market correction wasn’t providing enough excitement…
Today I’m doing something slightly different. I normally feature one stock from each of our three portfolios in the monthly issue. Today of...
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After a mixed performance last week, the market opened significantly lower yesterday, and the Dow and S&P 500 both hit their lowest level since the start of October. One of Cabot’s long-term market timing indicators just turned negative, which tells us it’s time get...
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We've had a fierce six-day selloff, but the market has managed to find support and is rebounding this week. But I still advise caution as things are still dicey. Most of the positions in our portfolio are on Hold, but we're adding one to...
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The yield on the 10-year Treasury hit its highest level in seven years and remains elevated as this week progresses. This interest rate surge has created some unusual ripple effects across growth stocks, utilities, financials, and energy stocks. Thankfully our diversified portfolio is well...
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General Electric: Still a Hot Mess
This week, General Electric (GE) announced that, after a brief tenure, CEO and Chairman John Flannery is being replaced by Larry Culp, former CEO of Danaher Corp. Don’t get all excited about Larry Culp, nor about yesterday’s jump GE’s...
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How to Exercise Caution While Riding the Bull Market
Many investors remember that late in the summer of 2017, I cautioned you that the stock market was due for a pullback. At that time, the market had risen steadily since November 2016, and showed sign...
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Valuable Investor Tools
If you’re not in the habit of listening to quarterly earnings conference calls, I suggest that you pick one of your stocks, and visit the company’s investor relations page. You’ll likely find their earnings press release, a webcast of the management call...
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Distinguishing Between Normal Equity Market Corrections, Bear Markets and Recessions
I’m going to make a really simple statement. Please read it three times and tell me if it helps you relax just a little bit:
The S&P 500 index rose 21.7% in 2017, and it’s 1.7%...
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News About International Trade Negotiations and NAFTA
The vast majority of Americans are not exposed to what’s happening in international trade negotiations, simply because the topic is too extensive to be covered by common news sources. So instead, Americans receive sound bites amounting to two...
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Stock Sector and Industry Trends
Energy stocks experienced lots of bullish price action in recent weeks. I expect most of them to pause in their uptrends, and that could include pullbacks, which would be perfectly normal. Use the pullbacks to add to your favorite stocks.
Yesterday,...
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My Favorite New Stock Today
Today I’m introducing three new stocks to the Cabot Undervalued Stocks Advisor portfolios, including footwear manufacturer Skechers USA (SKX), which joins the Buy Low Opportunities Portfolio. I’m especially pleased to recommend Skechers because I love their products. As we few...
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The Almost-Final Decision on the Section 232 Investigation
As expected, the U.S. government’s Section 232 investigation into the national security implications of international trade abuses in the steel and aluminum industries will likely result in tariffs on imported steel. No surprise there, because the Department...
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Interesting Times
Unexpectedly strong increases in employment and wages sent stock and bond markets tumbling last week, thus pushing Treasury yields higher in keeping with inflation fears. A strong economy is good for workers and companies, but as it fuels inflation, the Federal Reserve to...
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I’m plucking my Bank of America (BAC) stock review out of the Growth Portfolio section, and putting it right here in the editorial section of the weekly update. That’s because good news affecting BAC will also affect virtually all bank stocks.
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