Analysts Center | Chloe Lutts Jensen

 

Here are some excerpts from Cabot Dividend Investor, which features the best investments for retirement income. Powered by Cabot’s proprietary Individualized Retirement Income System (IRIS), this advisory helps investors allocate assets between investments optimized for high yield, dividend growth and safe income, according to individual retirement goals.


Not Time to Be Aggressive

The intermediate-term trend is now neutral, but the market’s longer-term trend is up and the broad market remains healthy.»

Killing Time Until Yellen Speaks

Interest rate hike expectations had been swinging wildly in recent weeks, but haven’t had much fodder to digest since last Monday.»

Volatility is Back!

Whether this is a quick V-shaped pullback like we saw after Brexit or a more serious correction will become apparent in coming weeks.»

That’s Why We Don’t Bet on This Stuff

Strong economic data has increased the odds of an interest rate hike this year to 54%, with the odds of the Fed moving in September currently at 34%.»

Market Waiting for Fed Statement

Investors are waiting with bated breath for Janet Yellen’s statement in Jackson Hole this Friday.»

Time to Be Fully Invested

A new bull market has begun. That means it’s time to be fully invested—although it’s still important to choose the right investments. »

Low Interest Rates Boost Dividend Stocks

Low interest rates are making dividend stocks more popular than ever, and while we’re happy to benefit, it’s also worth asking if the situation is sustainable.»

Good News for Dividend Stocks

Fixed-income yields are at record lows and continuing to fall, while stocks and stock dividends are both rising—it’s pretty clear which asset class income investors should prefer today.»

Interesting Time for Income Investors

Interest rates have plummeted post-Brexit, as investors flee to the safety of fixed income just as central bankers are promising more stimulus for shaky markets.»

Sorting Wheat from Chaff

Events like Brexit can be a great time to find new portfolio candidates, because they help you quickly sort the wheat from the chaff. »

Mood on Wall Street is “Risk-Off”

Today’s Fed meeting, the shooting in Orlando over the weekend and the upcoming Brexit vote are all contributing to a heightened sense of uncertainty and a “risk-off” mood on Wall Street.»

Taking Predictions with a Grain of Salt

As ever, I recommend you take rate hike expectations and macro-economic predictions with a grain of salt, focus on stocks that are working well, and keep your goals and risk tolerance in mind.»

Breakthrough Would Trigger Another Rally

The Dow and S&P 500 will likely to challenge their April highs again in coming days, and a breakthrough would almost certainly trigger another rally.»

Turbulence Returns

Cabot’s intermediate-term market timing indicators are now on the fence, and I recommend holding off on significant new buying for now, unless you’re substantially underinvested.»

Conservative Sectors Back on Their Feet

Utilities and consumer staples stocks have outperformed the major indexes and the off-the-bottom stocks over the past five days. »

What the Major Stock Rotation Portends

Over the last few weeks, we’ve seen a major rotation out of conservative, high-yielding equities, affecting telecoms, utilities, tobacco stocks and many consumer staples stocks.»

Time to Increase Exposure to the Market’s Rebound

Now that the market has strengthened substantially over the past month, and we’re ready to start turning more aggressive.»

Confidence Behind the Stock Market’s Rally

One interesting aspect of this stock market rally is how quickly investor fear (measured by the VIX) has dried up, considering how markets suffered major losses so recently. »

The Broad Market Strengthens

The central bank announcements continue today, with the Fed’s policy announcement this afternoon. Market watchers are looking to see whether the Fed has changed its expectations about inflation, which has increased more quickly than expected since their last meeting. »

Is This Rally the Real McCoy?

Bargain hunting is a sign that investor fear is waning (a necessary precondition for a rebound to become a sustained rally), as is the rally in the junk bond market over the past two weeks.»

Is the Stock Market at a Turning Point?

After rallying last week, the S&P is once again knocking at the 1,950 level, where the last recovery failed on February 1.»

Attention is Back on the Fed

Some Fed watchers now expecting an interest rate cut rather than another hike in 2016.»

Reduce Your Risk, Limit Your Losses

The fact that the broad market failed to recover even half of January’s losses before losing momentum again isn’t a great sign for a recovery.»

Remain Cautious

The market has strengthened by some accounts, but it hasn’t exactly been the greed-driven rebound we’d expect to see if January’s lows represented the bottom.»

The market doesn’t fall 10% in two weeks and then bounce right back. Damage has been done, and it will take time for real support to build back up. »

The Back and Forth of the Market

Since our last issue, the Fed has raised rates, oil prices have fallen another 10%, and the S&P has declined about half a percent.»

A Reason to Look Forward to 2016

Since 1928, nine out of 10 “flat” years have been followed by a better-than-average year for the stock market, with an average gain of 23%. »

Continue to Be Selective

We’re also well into the “seasonally favorable” half of the year, but trouble spots remain, especially among retailers, the backbone of the U.S. economy.»

A Little Sunshine for Retail

Wal-Mart's and Home Depot's earnings beats on Tuesday morning brought a ray of sunshine to the beleaguered retail sector.»

Strong Market Performance, Earnings Reports

While most of the big picture worries from August and September remain—slowing global economies, interest rate hikes, lower corporate earnings—some are turning out not to be as scary as expected.»

Still Money to be Made

Long-term investors can invest in high-quality stocks and bargains here, while shorter-term investors should focus on stocks that look healthy today, as they’re most likely to do well through the end of the year.»

Real Leadership Remains Scarce

Real leadership—stocks breaking out to new 52-week highs, for example—remains scarce, which makes it harder to convincingly call this a bull market. »

Market Continues Steady Improvement

Given the steadily improving environment, I’m putting two stocks back on Buy today. Elsewhere, we’ve actually seen new 52-week highs in a couple of our holdings recently. »

Markets Retesting August Lows

Concerns about the Chinese economy convinced the Fed to put off its rate hike once again, sending markets into a tailspin, and they are now retesting their August lows. »

All Eyes are on The Fed

While the first rate hike—either tomorrow or later this year—is likely to cause a short-term shock, what the Fed says about its longer-term plans may be more important. »

Headline News

Stock Picks

Shopify

Shopify (SHOP), which came public in May of last year, is a new leader.

Facebook

Roy Ward uses the PEG ratio to determine if the stock is undervalued or overvalued.

Amazon.com

For AMZN to be undervalued, the stock would need to fall to 393. 50.

Cabot Wealth Advisory

The Emerging Market Stock You Ought to Own

By Paul Goodwin on September 27, 2016

The company I’m talking about (the one that you probably don’t own) is the largest Chinese instant messaging company. It is a giant in its own right, with a market cap of $262 billion and annual sales of over $19 billion. The company grew revenue by 28% in 2015 and routinely boasts after-tax profit margins over 30%.Read More >

Tesla Model 3 vs. Chevy Bolt: Which Affordable Electric Car Is Better?

By Timothy Lutts on September 26, 2016

The Tesla Model 3 and Chevy Bolt are the first two affordable electric cars with a driving range of more than 200 miles. Let’s see how they stack up - and what they could mean to Tesla Motors (TSLA) and General Motors (GM) stock. Read More >

Does Alibaba (BABA) Stock Measure Up to Amazon (AMZN)?

By Paul Goodwin on September 23, 2016

Alibaba (BABA) is the Amazon (AMZN) of China. But does BABA stock measure up to AMZN stock? Let’s break it down!Read More >