Election season is now in full swing. In less than seven weeks, or only 49 days, the country will select its next president, representatives from all 435 House congressional districts, 35 senators and 12 state governors.
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Markets were abuzz this week with talk of a “tech meltdown,” with Tesla (TSLA) getting hit rather hard on Tuesday, falling more than 20% before bouncing back 10% yesterday.
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The recent (and ongoing?) tech momentum reversal appears to be due to a variety of concerns ranging from doubt about valuations, worries about the pace of the economy’s recovery, the lack of another stimulus package and slowing growth in the Federal Reserve’s asset purchases.
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Don’t Fight the Fed?
The U.S. Federal Reserve Bank, called by its colloquial name “the Fed” even on its website, made its informal but landmark policy change official last week. For the foreseeable future, the Fed will keep interest rates near zero, focusing almost on...
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The Cabot Global Stocks Explorer portfolio had another good week, with four stocks all making major moves.
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Starting next Monday, August 31, before the market opens, the Dow Jones Industrial Average will have a new look.
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2020 has surely been one for the record books—the sharpest selloff in history from a record high to a bear market and then the sharpest rebound in history from a bear market to a new record high.
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Second quarter earnings season is winding down. It was quite a quarter! We’re impressed that so many companies have aggressively reduced their operating costs in the recently completed quarter.
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Markets are showing great resiliency as the S&P 500 nears a record and stocks have risen all but one day in August. Optimism about an eventual stimulus bill and the prospect of declining Covid-19 cases and a vaccine are still supporting the economy markets...
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We are mostly through the bulk of earnings season and it has been enlightening, particularly as we learn about the pandemic’s effects on profits. Earnings season should be a period when company results can be clearly measured, especially since we are dealing with numbers.
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A Few Thoughts on Rising Market Speculation
The stock market continues to favor high-tech “digital economy” growth companies, particularly after the remarkably strong earnings reports from Apple, Amazon and others. The performance spread between “digital economy” stocks and “physical economy” stocks suggest that speculative is...
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Earnings reports have been mixed and market activity muted this week, but today the four technology giants will report after the market closes. Germany reported that its economy contracted the most on record, shrinking 10.1% in the second quarter.
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By far the worst performing sector in recent years has been the energy sector. From its peak in mid-year 2014 when oil prices reached over $100/barrel to its current state of complete disarray, the S&P Energy Sector index has collapsed 63%. For comparison, broad...
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The title of this note might be, “What to expect when you’re expecting … earnings.” As companies in the Cabot Undervalued Stocks Advisor portfolio start reporting earnings this week, let’s look into what is behind the results and estimates.
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The Cabot Global Stocks Explorer portfolio did well this past week even though markets were a bit choppy, in line with mixed data and expectations about how fast growth will return.
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Earnings season is upon us again. This quarterly ritual, when all public companies report their most recent results, is when investors can see hard facts about revenues, profits and balance sheets, as well as hear softer commentary from management about their explanations, outlook plans.
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Stocks produced one of their strongest quarters in living memory, with the S&P 500 returning 20.5% in the period ending June 30. The index has nearly fully regained its previously-lost value, declining only 6% for the first half of the year. Investors frequently how...
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As we move into the third quarter, analysts at Goldman Sachs write that their baseline forecast is for the S&P 500 to gain 5% in the second half of the year. In their “vaccine upside” scenario, stocks rise by 14% from here; in “virus...
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How to Learn More about the Companies You Own
As the new Chief Analyst for the Undervalued Stock Advisor, I’d like to thank you for reading this month’s letter. I know you have many sources of investment ideas and advice, and I appreciate your in...
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There have been so many changes in 2020, it pains me to heap another change onto your laps, and yet it is time for me to do so. I’ve implemented the next phase of my longtime career plan by establishing a U.S. equity fund...
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