I just returned from the Orlando Money Show, where I had an opportunity to see and speak with several of our contributors. The mood was festive, and the advisors were optimistic. And why not? The markets continue to outperform, as we navigate through the nasty election season. Both investors and advisors continue to be very bullish, as you can see from our Advisor Sentiment Barometer, as well as our Market Views.
The economy is very strong, with a healthy housing market, steady employment, and good retail sales. We’ve yet to see if the coronavirus outbreak will have any major and long-lasting effects on the global economy.
But for now, the investment opportunities are plentiful. Read the Issue for more details.
Wall Street’s Best Investments 826
[premium_html_toc post_id="198504"]
Bullish, but be Discerning
It’s been another solid week for the market, with the major indexes kiting higher and, while individual stocks were a bit more mixed and news-driven, most are acting just fine.
Overall, not much has really changed from a week ago—the vast majority of evidence remains bullish, especially the primary evidence (trends and action of the major indexes and key leading stocks), which tells you what big investors are doing right now.
That said, you shouldn’t get too far over your skis, either. The title of my Cabot Growth Investor was “Positive—but not Pounding the Table” which tells you our thinking. If you’re heavily invested, we’d certainly be riding most of your winners (partial profits are fine here and there, as always), and some new buying is fine if you find solid setups.
We don’t want to overemphasize the handful of yellow flags out there. Obviously, the market could pull in at any time, which simply means you want to be more discerning on the buy side. Simple as that.
Michael Cintolo, Cabot Top Ten Trader, www.cabotwealth.com, 978-745-5532, February 14, 2020
Gold is Bullish
We’re already seeing governments react to fears that the coronavirus outbreaks will drag on global economic growth. They’re cutting interest rates and firing liquidity cannons, and more “preventative” action will follow. Thanks to inflation, when benchmark rates go very low, real interest rates—which take inflation into account—go negative. Sometimes this happens even if the benchmark rate is still positive. The bottom line is that gold is bullish for all sorts of reason. But the government reaction to the coronavirus adds more fuel to the fire. Pullbacks can be bought.
Sean Broderick, Weiss Ratings, 1-877-934-7778, www.weissratings.com, February 10, 2020
To read the rest of this month’s issue, download the PDF.
The next Wall Street’s Best Investments issue will be published on March 19, 2020.
Cabot Wealth Network
Publishing independent investment advice since 1970.
CEO & Chief Investment Strategist: Timothy Lutts
President & Publisher: Ed Coburn
176 North Street, PO Box 2049, Salem, MA 01970 USA
800-326-8826 | support@cabotwealth.com | CabotWealth.com
Copyright © 2020. All rights reserved. Copying or electronic transmission of this information is a violation of copyright law. For the protection of our subscribers, copyright violations will result in immediate termination of all subscriptions without refund. No Conflicts: Cabot Wealth Network exists to serve you, our readers. We derive 100% of our revenue, or close to it, from selling subscriptions to its publications. Neither Cabot Wealth Network nor our employees are compensated in any way by the companies whose stocks we recommend or providers of associated financial services. Disclaimer: Sources of information are believed to be reliable but they are not guaranteed to be complete or error-free. Recommendations, opinions or suggestions are given with the understanding that subscribers acting on information assume all risks involved.