Investing Commentary

Cabot Wealth Advisory

china-greece

Sell Apple

Today, I’m writing on a MacBook Pro. This morning I did my morning crossword puzzle on my iPad. All day long, my iPhone is by my side. My home Wi-Fi comes from Apple AirPorts. And some nights, I stream entertainment through my Apple TV. In short, I love Apple products, and I expect to continue using them for many more years. But one of the most important market truisms is this: “The company is not the stock.”

10-commandments

Sunny Days

Every year, usually on a Thursday in July, most of the Cabot crew gathers in Salem, jumps into cars and heads north. With bathroom breaks and a stop to purchase refreshing beverages (ahem), the group drives through New Hampshire’s tiny seacoast neck and winds up in Kittery, Maine, at the Chauncey Creek Lobster Pound. There, lobsters, baked beans, coleslaw, steamers, mussels and (importantly) chips are consumed and the store of tissue-restoring beverages is significantly reduced.

china-greece

What Will Rising Interest Rates Really Mean for the Stock Market

Long before Greece and China started making the largest headlines every day, investors everywhere thought rising interest rates would cause the next big market decline. (As my father always says, trouble comes from where you least expect it.) Now that Greece has secured a respite from its lenders, interest rates are moving back to the top of investors’ list of things to worry about—especially since Janet Yellen just reiterated last week that the Fed expects to begin raising rates by the end of the year.

china-greece

Is Gilead Sciences (GILD) Overvalued or Undervalued?

GILD has soared from under 20 to over 120 over the past four years, thanks to mushrooming revenues from Sovaldi and Harvoni, the company’s hepatitis C drugs, revenues grew 52% from last year—and that was the slowest revenue growth rate in five quarters!. But the stock is very well known, and some analysts (Goldman Sachs apparently among them) are worried that falling prices and competition will cut into the company’s fat profit margins.

china-greece

You Call That a Bottom?

I’m tempted by the idea of finding a stock at the bottom of a correction. I’ve given up on the idea of recognizing a bottom in the market. Market bottoms are idiosyncratic, sometimes bumping along for weeks or months, sometimes forming sharp Vs and other times W-shaped patterns. As I always say, the only people who consistently sell at the top and buy at the bottom are liars.

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Cabot Weekly Review

The Market's Split Personality | Cabot Weekly Review

In this week’s Stock Market Video, Cabot China & Emerging Markets Report Chief Analyst Paul Goodwin looks at the market’s current split personality: the broad market just hacking along, but a cadre of growth stocks is performing like gangbusters. You don’t want to be heading for the deep end of the pool in this kind of market, but you do want to have some exposure to stocks with great stories and strong charts. He gives a few of his favorites.

Stocks Discussed:
ULTA Beauty (ULTA)
Tesoro Corporation (TSO)
Restoration Hardware (RH)
Palo Alto Networks (PANW)
Martin Marietta Materials (MLM)
Hasbro, Inc. (HAS)
NetEase (NTES)

Cabot Chart School

Managing Your Portfolio for Maximum Profits

In this third of three videos in Cabot's stock chart school series, “How to Invest in Growth Stocks,” Cabot Market Letter editor Mike Cintolo takes you through portfolio management -- a skill that most people don't really develop and which leads to them getting sub-par returns. He discusses the concept of portfolio management in general, as well as looking at some specific trades Cabot has made in the past.

Stock Picks

Ross Stores

McKesson (MCK) distributes ethical and proprietary drugs, surgical supplies and health and beauty products throughout North America to the healthcare industry. The company also provides technical consulting services to biotech and pharmaceutical manufacturers.

Carnival Cruise Lines

Having just returned from vacation, Tim Lutts is thinking of the millions of baby-boomers who are spending more and more money on leisure travel, particularly on cruises, an industry that is dominated by a few big players.

China Biologic Products

Paul Goodwin advises putting this stock on your watch list.

Cabot Wealth Advisory

Sell Apple

By Timothy Lutts on July 27, 2015

Today, I’m writing on a MacBook Pro. This morning I did my morning crossword puzzle on my iPad. All day long, my iPhone is by my side. My home Wi-Fi comes from Apple AirPorts. And some nights, I stream entertainment through my Apple TV. In short, I love Apple products, and I expect to continue using them for many more years. But one of the most important market truisms is this: “The company is not the stock.”Read More >

Sunny Days

By Paul Goodwin on July 24, 2015

Every year, usually on a Thursday in July, most of the Cabot crew gathers in Salem, jumps into cars and heads north. With bathroom breaks and a stop to purchase refreshing beverages (ahem), the group drives through New Hampshire’s tiny seacoast neck and winds up in Kittery, Maine, at the Chauncey Creek Lobster Pound. There, lobsters, baked beans, coleslaw, steamers, mussels and (importantly) chips are consumed and the store of tissue-restoring beverages is significantly reduced.Read More >

What Will Rising Interest Rates Really Mean for the Stock Market

By Chloe Lutts Jensen on July 23, 2015

Long before Greece and China started making the largest headlines every day, investors everywhere thought rising interest rates would cause the next big market decline. (As my father always says, trouble comes from where you least expect it.) Now that Greece has secured a respite from its lenders, interest rates are moving back to the top of investors’ list of things to worry about—especially since Janet Yellen just reiterated last week that the Fed expects to begin raising rates by the end of the year.Read More >