Investing Commentary

Cabot Wealth Advisory
DRIP

My Favorite Dividend Reinvestment Plans (DRIPs)

What many investors don’t realize is that there is another vehicle (besides mutual funds) that offers you a means to pool your money with others to buy shares, at nominal costs. I’m talking about dividend reinvestment plans (DRIPs).

stock market uncertainty

A Stock with Low Risk but Good Upside Potential

As to the market, I’m getting nervous. So today I’m going to suggest a stock that has relatively low risk but still has good upside potential.

Cabot Heritage Photo

Report from the Cabot Investors Conference

The second Cabot Investor Conference has now wrapped up in a blaze of glory. The breakfasts were excellent, the weather was New England perfect.

BlueArrowsUp

10 Tips for Growth Investors

Here are 10 tips for growth investors that should be helpful to use once growth stocks turn decisively up.

algorithmic trading

How to Use Options to Hedge Your Portfolio

Here are a couple of different options strategies you can use to “hedge” your portfolio.

View Past Issues »

Cabot Weekly Review

Recent Market Strength | Stock Market Video

In this week’s Stock Market Video, Mike Cintolo takes a close look at the recent market strength. It’s not enough to counteract the medium-term weakness of U.S. indexes, but it’s a hopeful sign.

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.

Editor's Center

The major indexes are starting to look a little overheated as we come to the end of June, so I wouldn’t be surprised to see the latest economic news trigger a decent-sized pullback. I'm fine with that though, since out high-quality, defensive holding should hold up just fine. A correction would also give us an opportunity to establish a position in our newest buy at an advantageous price. The 4.4%-yielding stock is riding high on the national release of a trendy new product, and could stand to cool off a little ... especially since we’re investing for the long term.

more from Chloe Lutts Jensen »

While I don’t profess to be an expert economist, I believe the economy and corporations will perform quite well during the remainder of 2014. Dips in the prices of many stocks have created some excellent buying opportunities. There are exceptions, though.

more from J. Royden Ward »

Because the evidence has improved, we’re shifting our Market Monitor toward bullish territory, so you can put some sidelined cash to work, but we advise stepping back into the market slowly.

more from Michael Cintolo »

It’s a good time to remind ourselves of two great truths of growth investing. The first is that the Pareto Principle definitely applies. The Principle, holds that 80% of your portfolio’s return for the year will come from just 20% of your stocks.

more from Paul Goodwin »

On the one hand, I continue to believe that puts are too cheap in this environment of “global uncertainty.” On the other hand, we are again nearing all-time highs, so it’s hard for many investors to see reasons to own portfolio protection.

more from Jacob Mintz »

In last week's ETF letter, I said it felt like the market elevator was going up and up without end. Now it feels like the elevator is finally resting at the 18th floor. (That is, with the S&P hovering around 1,800.)

more from Robin Carpenter »

It’s a familiar story: you’re having dinner at a restaurant when the conversation turns to movies, and no one can remember the name of that actress, the one who was in that movie about space.

more from Thomas E. Garrity »

The bull market rolls on, propelled by money that continues to flow from low-yielding alternatives into strongly performing stocks. So I continue to recommend a heavily invested—and well-diversified—portfolio. Today, the Cabot Stock of the Month portfolio is thoroughly diversified, holding stocks from each of the Cabot services it can draw from. But stasis is not the goal here—progress is. Each month, as I select a new stock, I work hard to find the one with the greatest potential in the current market environment, commensurate with risk. Today, with the market strong but elevated, a large part of my calculation in this selection process involved downside potential—I didn’t want to buy a stock and then see it correct 20%. So I avoided the most extended stocks and looked more at stocks that had just broken out to recent highs, or had recently completed a washing-out of weak hands. And, as always, I wanted a growth story I could hang my hat on. There were a number of good contenders, but the final choice is a consumer name you’re probably familiar with. The stock was originally recommended by Mike Cintolo in a recent issue of Cabot Top Ten Trader—in fact, he made it the Top Pick.

more from Timothy Lutts »