We at Cabot Micro-cap Insider are long-term investors and try not to time the market. However, we are aware that there is seasonality to market returns. You have probably heard the term, “Sell in May and Go Away.” That’s because on average, the six months May...
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The big news this week is taxes. President Biden proposed to raise the capital gains income tax on long-term capital gains from 20% to 39.6% for millionaires. Who knows if this law will actually get passed. I have my doubts. For years, Republican Democratic...
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Even the S&P 500 is back near all-time highs. So why does it feel like there’s been a pullback in the market? Because there has … if you’re a micro-cap investor. The Russell Micro-cap index has pulled back and has underperformed the S&P by...
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After a volatile March, the market has found its footing. Month to date, the S&P 500 is up 2.8%, and is back to an all-time high. Our open recommendations are up 81% on average from when they were initially profiled. In total (including recommendations),...
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The big news this week (completely unrelated to our recommendations) is that a family office called Archegos Capital Management has blown up and caused a mini-meltdown in the market.
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Over the past couple of weeks, the market has been flat despite a lot of news flow. There are rumors that the Biden administration may try to push through a tax hike on high earners and separately propose a massive infrastructure bill. Meanwhile, round...
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After a little volatility in the past couple of weeks, most of our recommendations are at or close to all-time highs. The S&P 500 is back to all-time highs. The NASDAQ Index, after pulling back ~11.0%, has rebounded sharply and is up ~8.0% a..
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Vaccines are being rolled out, and the economic recovery will be strong in 2021. Stocks that will benefit from the economic recover should have strong tailwinds. While our entire portfolio should benefit from an improving economy, two stand out to me.
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Judging by some headlines and my Twitter feed, you would think the markets are in meltdown mode. But I just checked and the S&P 500 is only 1.9% down from its all-time high. And the Russell Micro-Cap Index is down 4.0% from its high...
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The market continues to perform incredibly well with the S&P 500 at an all-time high. And there continues to be signs of froth. The latest data point that I’ve found is the average SPAC is trading at a 26.4% premium to its cash value.
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What a wild week! Even though I’m not long or short GameStop (GME), it was hard to take my eyes off its stock over the past week. There are a lot of different takes on what it all means. Some believe it’s a sign reckless...
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Shorting stocks is not worth the risk. How do I know? Simple math, as I found out the hard way this spring.
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In This IssueShort SellersBrexit StocksRecommendations:Buy: Trinity (TRN)MPO UpdateNews Notes & Performance
WHERE SHORT-SELLERS COULD BE WRONG
While most investors select stocks that they believe will increase in price (being “long” a stock), short-sellers are hoping the price goes down. Motivations for short-selling include: betting against stocks...
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Bitcoin and crypto- related securities have been the talk of the trading world for weeks as the value of these new digital currencies have skyrocketed. And with the value of the coins’ rise, there’s been massive moves in the share prices of companies are...
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Bitcoin and crypto- related securities have been the talk of the trading world for weeks as the value of these new digital currencies have skyrocketed. And with the value of the coins’ rise, there’s been massive moves in the share prices of companies are...
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A bubble in shopping malls is forming, and hedge funders are plotting their next "Big Short." I'd rather take the other side, and find the best stocks to buy.
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Paul Goodwin, editor of Cabot China & Emerging Markets Report, attended the Wall Street China Forum on May 6 in New York. The purpose of the Forum was to examine practices for assessing Chinese companies for U.S. investment. At the conference, found that the...
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One of the proverbs that I heard repeatedly was, “The most bullish thing a stock can do is go up.”
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Those of us who work the growth investing side of things here at Cabot certainly enjoy the stock selection process.
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If you started investing in the last couple decades, you probably don’t remember Joseph Granville, who passed away last Saturday at the age of 90. But investors who were active in the late 1970s and early 1980s will remember Granville for a couple prescient...
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