Cabot Dividend Investor Weekly Update
Earnings have been sensational. Reported earnings for S&P 500 companies have grown an average of 2% in the fourth quarter, compared to an expected -11%.
Read More
Stock market corrections are a fact of life if you invest. And they can be pretty scary. More specifically, market corrections are when a major stock index suddenly plummets more than 10% from its most recent high.
Long-term investors, especially those with high-quality stocks in their portfolios, can usually wait out a correction. Even if you do some selling, the most important thing to remember is: Don’t Panic! It’s very possible you could miss out on major gains if you preemptively sell stocks whenever market corrections threaten.
For that matter, some very successful investors suggest that you hold your stocks during periods of market volatility so that you can reap the eventual rewards of increasing stock prices.
But let’s talk about buying during market corrections. When shareholders panic and sell, portfolio managers are forced to sell their cream-of-the-crop stocks based on the panicked behavior of uninformed investors. That’s why stock prices of good companies fall during market downturns.
That’s also why those stocks’ prices can rapidly rebound. Investment professionals know which stocks are excellent bargains after the market falls. They have their shopping lists ready, as you should! And you can look forward to buying shares of your favorite stocks after they’ve fallen.
The caveat is that you can’t just buy any random stock and expect that stock to rise with the eventual rebound in the broader market. There’s an art to successfully buying low among stocks, and one key facet of that decision is sticking with stocks that fell, but didn’t plummet. In that light, look for stocks that fall 10%-15% during a stock market correction.
Remember, too, that if you seriously expect to own a stock for just a few days or weeks, you’re not an investor, you’re a gambler. Investors should have a several-year timeframe with no immediate need to spend their invested capital.
To learn more, download our free report, 10 Forever Stocks to Buy Now–and How to Find the Best Growth Stocks.
Earnings have been sensational. Reported earnings for S&P 500 companies have grown an average of 2% in the fourth quarter, compared to an expected -11%.
Read More
The stock market is clearly accelerating the “reopening” trade. Small cap and cyclical stocks as well as commodity prices are surging, interest rates continue to tick up (the 10-year Treasury yield is now 1.38%, up from 0.92% at year-end), and novel financial vehicles SPACs,...
Read More
With the shares continuing to surge past our recently raised 65 price target, and now being priced at a premium to even our upgraded valuation metrics
Read More
With this week’s recommendation, I’m swinging back to the more conservative side with a solid technology company poised for big gains from the 5G communications rollout.
Read More
Stock Recommendation Tracker
The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More
Stock Recommendation Tracker
The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More
Earnings have been sensational. Reported earnings for S&P 500 companies have grown an average of 2% in the fourth quarter, compared to an expected -11%.
Read More
With the stock market regularly surging to record highs, it may seem like an unusual time to focus on valuation. After all, many stocks are remarkably expensive on traditional measures, and even somewhat lofty on non-traditional measures. But valuation still matters, especially if market...
Read More
This week’s recommendation is a small company with no earnings, minimal revenues and a lot of competition.
Read More
Stock Recommendation Tracker
The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More
Stock Recommendation Tracker
The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More
Simply Put: Very Impressive Action
Two weeks ago, the major indexes and some individual stocks began to flash abnormal action, a couple of key leaders were threatening to break down and some late-in-the-advance type of action (heavily shorted stocks going nuts) was occurring. Importantly, the...
Read More
Last week, we outlined four ingredients of a market bubble that were usefully outlined in a recently published book1”and briefly described how it clearly appears that our stock market is in a bubble. These ingredients include easy trading of assets, cheap and easy rising...
Read More
Today I’m swinging back to pure growth with a very interesting stock that has a great story—and no direct competition.
Read More
Stock Recommendation Tracker
The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More
Stock Recommendation Tracker
The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More
The fourth quarter earnings season is well under way and the results have been somewhat spectacular so far, and much better than expected.
Read More
With the now-infamous Reddit trades unraveling, and the rebalancing done, the market is free to rebound.
Read More
The market’s main trend remains up, and thus I continue to recommend that you be heavily invested.
Read More
Stock Recommendation Tracker
The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
Read More