Today’s and next week’s issues of Cabot Undervalued Stocks Advisor are going to look a bit different. I won’t be reviewing all of our portfolio stocks today. Many Wall Street analysts are on vacation, so there will be very little in the way changes...
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The big news that affected the market this week was, of course, the dreaded yield curve inversion. This happens when the 10-year Treasury yield goes below the 2-year yield.
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U.S. stock markets have exhibited a high degree of volatility in recent weeks. There are lots of factors contributing to the turmoil, which will ebb and flow, probably for the rest of our lives. So let’s just circle back to why we’re here: here...
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The market has been up, down and all over the place lately. So have our stocks. Oddly enough, from last Thursday’s close through yesterday’s close our portfolio is relatively unchanged—down just 2% using a simple average of each stock’s weekly return.
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Trade War Turmoil Trumps a Good Earnings Season
U.S. stock markets took quite a tumble in the last few business days. For those of you wondering, “Should I buy low?”, the answer to that question is usually “yes, but let’s first wait for the to...
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The Dog Days of Summer
We are in the dog days of summer, the hottest, most sultry days of the year. The expression “dog days” is an old one. In fact, it’s really old. The Romans used it.
It’s one of those expressions that everyone but...
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Market Views
Be Ready for Profit-Taking
The S&P 500 and Dow Jones Industrial Average were little changed today on slightly negative breadth on the NYSE. Broad foreign equity ETFs (EFA, EEM, VEU) also had a quiet day. However, small and mid-cap ETFs fell about 1⁄2%.
The Russell...
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The Federal Reserve is expected to lower interest rates this week, with a likely announcement on July 31. The stock market has fully priced in a rate reduction, which means if the Fed fails to lower rates, investors can expect the market to for...
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Our portfolio is outperforming the index by roughly 100%, on average. But we’re not the only ones. Many targeted mutual funds are also demolishing the Russell 2000 Small Cap Index.
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Last week’s economic reports delivered good news, presuming that you are rooting for a stable or strong U.S. economy. June retail sales rose 0.4% vs. May, when economists expected an 0.2% increase; and retail sales also rose 3.4% vs. a year ago.
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This week marks the beginning of the second-quarter earnings season. I don't foresee any major changes in the trends in any of our companies, but stock price reactions and trends don't always line up in the short term.
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From a stock market point of view, I suggest avoiding homebuilder stocks in the coming years. Companies that build single-family homes will be competing with a glut of existing homes on the market.
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This week’s market recap is a familiar story—the major big-cap market indices are doing great! But the small cap index is still wallowing in the mud.
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The news media continues to whip investors into a frenzy over the direction of interest rates. Depending on where you look, you can find knowledgeable financial pundits making the case for steady, unchanging interest rates or for the Fed to lower the fed rate...
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Congrats to the Top Picks 2019, Mid-Year
Congratulations to our Top Picks for 2019! We’re halfway through the year, and the markets are doing great—and so are our Top Picks! The Dow Jones Industrial Average has gained 11.8%; the S&P 500 is up 14.3%, the...
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More on the Baby Boomer Housing Forecast
In the June 18 update of Cabot Undervalued Stocks Advisor, I wrote about a very serious change in the housing market that could take place over the next decade, as Baby Boomers sell their big homes and to...
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Not surprisingly, this week wasn’t a great one for our portfolio. I had a feeling the party was winding down last week, when we had an average gain of 105% going and had just seen our stocks pop an average of 6% over days...
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A Cautious View at the Midpoint of the Year
We’ve reached the midpoint of 2019, which means it’s a good time to take some stock of where we are and where we might be headed for the rest of the year.
In several ways, things pretty...
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Last week’s much-awaited pronouncement by the Federal Open Market Committee (FOMC) turned out to be a big “nothing burger.” I did not personally expect a cut in the fed funds rate.
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This was another one of those weeks where you look at what the S&P 500 did—up 1.5% to a 52-week high—and you look at what the S&P 600 Small Cap Index did—up 1% to 945 and back above its 50-day line, but well its...
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