Investing Commentary

Cabot Wealth Advisory
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V-Shaped Market Recovery

What does it mean when all three major U.S. stock market indexes produce charts with corrections and recoveries that look like a big “V”? Good question. I’m glad you asked. A market that can recover to new highs with remarkable rapidity also has the capability of breaking lower with equal vigor. Take the positive momentum of the market seriously, putting money to work in strong growth stocks, but also acknowledge a volatile situation.

Emerging Markets Investing

Bull Market in Chinese Stocks

I’m glad that Chinese stocks in general are doing better. The Golden Dragon ETF that tracks the performance of all Chinese ADRs that sell on U.S. exchanges has been making good progress and holding above its 25- and 50-day moving averages quite well.

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.

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.

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Cabot Weekly Review

V-Shaped Recovery | Stock Market Video

In this week’s Stock Market Video, Cabot China & Emerging Markets Report Analyst Paul Goodwin sees plenty of warning signs telling you to be cautious in both new buying and managing your growth investments. Paul also looks at the three leading industry groups in the market and gives some examples of the leaders in each group.

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 »

With the major bull market intact, and with the S&P 500 continuing to “live” well above its 2000-2012 highs (read: this could be a new secular bull market), a big push higher in growth stocks wouldn’t surprise us.

more from Michael Cintolo »

All in all, it’s a strong market, with the PowerShares Golden Dragon Halter USX China ETF (PGJ) continuing the rally it’s been working on since early May.

more from Paul Goodwin »

Puts are too cheap in this environment of “global uncertainty.” On the other hand, we're 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 »