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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Still the Same Story
Most times, the market environment is in a constant state of change, so when we report to you our latest thoughts on this page, there’s plenty to discuss—rotation among sectors, major moves in the indexes, earnings season or some big-picture that...
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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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Yesterday, after the market closed, rumors emerged that this portfolio stock is once again in talks to sell their gas stations.
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Much More Good than Bad
We believe it was the late, great Marty Zweig who once wrote that, in the world of the market, you’re never going to get everything lined up in one direction—if you had 100 market timing indicators, to get 85 90...
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Right now, U.S. stock markets are surging, largely due to the Federal Reserve’s bond-buying binge. As bond prices rise from the increased demand, bond yields fall (and they’re tremendously low).
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This portfolio stock reported good second-quarter results and moves from Hold to Buy.
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From an investor’s point of view, I will be cautious about owning P&C insurance stocks. We won’t know the cost of all the damage until second and third quarter earnings reports, but you can be sure that profits will suffer.
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The S&P 500 has had a tremendous run-up. It’s due for a correction, although it’s not yet indicating that the correction is imminent. Be cautious. Use stop-loss orders and/or pare back positions on stocks that have retraced early 2020 highs.
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Believe What You See
Most of the time, the stock market and U.S. economy are in gear—there are always fits and starts, but as the economy expands, earnings generally grow and that contributes to a bull market. But it’s the times when the two moving...
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How to Monitor Future Trouble in the Housing Market
U.S. stock markets continue to rise, carrying the majority of our portfolio stocks upward. There’s price resistance on the S&P 500 index at about 3,200, so that’s where I will anticipate an end to the run-up...
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The Perfect isn’t the Enemy of the (Very) Good
In a perfect world, everything would be lined up on the bull side of the fence. Market timing-wise, not only would our Cabot Trend Lines and Cabot Tides be bullish, but investor sentiment would be the...
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Growth Stocks vs. Everything Else
When stocks were falling apart in late February and early March, the market was obviously very uniform—that is, everything was moving together, in this case straight through the floor. Near the lows, for instance, less than 4% of stocks the...
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Caution: Rough Seas Ahead
As the stock market recovers from the steep downturn in March, I’d like to stress that this downturn bears no resemblance to any previous stock market downturn. It wasn’t created by corporate excesses or a housing bubble or any specific problem...
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So Far, So Good
It was exactly one month ago that the S&P hit its crash lows, down more than 35% from its highs five weeks prior. Given the selling extremes, it was normal to expect a bounce, which began right away. But during past...
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Key Test for the Market Coming Up
In the last issue, we wrote about some shorter-term signs of spring that had finally popped up for the market, including an encouraging positive divergence from the broad market as stocks collapsed. Throw in some horrid sentiment a..
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The Other Side of the Mountain
It appears as if U.S. stock markets have begun rebounding from the drastic March downturn. As you would expect, stocks that are less affected by global quarantine behaviors are recovering far more swiftly than those that cater to of...
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Some Short-Term Signs of Spring
We can’t remember a time when the news flow came as fast and furious as it has in recent weeks, from state-wide shutdowns to big market swings to stimulus packages to Federal Reserve actions. That’s why it’s good to a..
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The power of dividend growth isn’t really a secret, but a lot of investors don’t realize just how powerful it is.
Most investors think of dividends as moderate payouts from staid stocks. But the best dividend growth stocks are anything but boring: they can by...
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