All investing involves uncertainty and probability. Usually we don’t actually estimate numerical probability, but it’s always there. When we buy a stock or a mutual fund or an ETF, we never know whether it will be profitable, but we are implicitly betting that the probability of gain is greater than the probability of loss.
Which Cabot Publication is Right for You?
Cabot Weekly Review
In this week’s Stock Market Video, Cabot China & Emerging Markets Report Editor Paul Goodwin points out the obvious, which is that we are in a healthy bull market. Don't sweat the corrections; move toward being more heavily invested right now. Stocks discussed in include Yelp (YELP), Hornbeck Offshore (HOS), Netflix (NFLX), Parexel (PRXL), Toyota Motor (TM), Hertz Global (HTZ), IntercontinentalExchange (ICE) and Equitable Resources (EQT).
There’s a lot of long-term upside potential for SINA, but the stock has to make it though the earnings report in the short run.
Acquisitions and new contracts will add considerable sales and earnings in 2013, and higher assets under management and increased pricing in the annuities business will add profits.
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Whenever the market acts extraordinarily (on the upside or downside), investors tend to forget their discipline and act instead on emotion. But the best thing to do is to stick with your plan and keep it simple ... doing that has allowed us to ride many winners higher as the bull market has strengthened ...»
This is what a stockpicker’s market is all about. Except in the most chaotic of markets (like 2008), there are always stocks that have the right combination of strong stories, sound fundamentals and attractive charts to make progress, and they provide the best opportunities for growth investors. »
The CBOE Volatility Index (VIX) closed the week within striking distance of the “fear index’s” 52-week low. While the VIX continues to grind lower, there was a VERY interesting situation in option volatility this week. Normally, when stocks and the market advance, volatility in out-of-the-money calls declines.»
If you're not sure, Cabot Stock of the Month will help you build a diversified portfolio of growth, momentum, international and value stocks.