We Are All In This Alone
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As the year draws to a close, I want to highlight some of our best advice from 2011 as a way to wrap up the last 11-plus months and prepare for whatever the market hands us next. I'm going to start today with the first quarter of the year, January through March.
We started out in January with a few issues of Cabot Wealth Advisory focused on resolutions. They were written nearly a year ago, but the advice in them remains as important as ever, maybe even more so in these volatile times.
I wrote about 20 Investing Rules for 2011 (my favorite: Warren Buffett once said there were only two rules to follow with your investments: Rule #1: Don't lose money. Rule #2: Don't forget rule #1.) 20 Investing Rules for 2011And Cabot Market Letter Editor Mike Cintolo also wrote about some important investing new year's resolutions, like vowing to keep track of portfolio performance and taking some profits on the way up, among several others. Investing New Years' Resolutions
Cabot's Publisher Tim Lutts started out the year by reminding you of five reasons why you should be optimistic, a big theme at Cabot. 5 Reasons for Optimism
Also in January, you heard from Cabot Options Trader Editor Rick Pendergraft as he dispelled a popular myth about options. Dispelling a Popular Myth About Options
Cabot China & Emerging Markets Report Editor Paul Goodwin discussed why it's important as an investor not to make predictions about what the market will do and when. This is a critical--and difficult--lesson for many investors to learn. Why You Should Ignore Predictions
As winter rolled on, Mike Cintolo wrote about some witty market truisms that he had begun jotting down. His favorite was "Don't believe everything you think," which he believes is one of the hardest things for investors (especially newbies) to overcome. An Earnings Play for Next Week
Cabot Benjamin Graham Value Letter Editor Roy Ward discussed the value of using numbers to help find stocks that will become winners in the stock market. He showed you how to use data gleaned from a few services to pick stocks with big potential. Data, Data, Everywhere
A few weeks later, Mike Cintolo was back, writing about the importance of planning your trade and trading your plan. He urged readers to have contingency plans and stick to them when storm clouds gather. Plan Your Trade, Trade Your Plan
Tim Lutts wrote about three crucial pieces of advice that we'd all do well to heed: Don't be the guy who buys at the top and sells at the bottom; when a stock proves you wrong, sell; and look for the next big thing. The Next Big Thing
Then it was time for Paul Goodwin to write his annual issue about the best-performing stocks from the previous year. They were made the way all big gains are, by buying at very low levels, holding through at least one big upmove and keeping corrections under control. Timing was hugely important. The Top-Performing Stocks
Cabot Global Energy Investor Brendan Coffey looked at the growing importance of biofuels, as oil and gasoline prices continued to hover at precariously high levels in the run-up to the summer driving season. Biofuels Growing in ImportanceAnd as the first quarter of 2011 came to a close, Mike Cintolo reminded us of the ever-pertinent advice that the market is not the economy. He also discussed why you should never invest scared. The Market is Not the Economy
That's all for this week! Tune in next Saturday for more of the year in review.
Here's this week's Contrary Opinion Button. Remember, you can always view all of the buttons by clicking here.
We Are All In This Alone
Assuming that "this" means investing, the saying means simply that you're on your own. Yes, you can take advice, from Cabot and others, but in the end, the decisions are yours alone. And that is true for all of us.
In this week's Stock Market Video, Cabot Market Letter Editor Mike Cintolo says that the market has a nice rebound this week after two crummy weeks. But he says that not much has changed, as the indexes are still trading within a wide range. Longer-term, Mike remains optimistic. Stocks discussed: BE Aerospace (BEAV), Intel (INTC), Homebuilders (XHB), Macy's (M), Rackspace (RAX), Cabot Oil & Gas (COG), Continental Resources (CLR) and MercadoLibre (MELI). Click below to watch the video!
In case you didn't get a chance to read all the issues of Cabot Wealth Advisory this week and want to catch up on any investing and stock tips you might have missed, there are links below to each issue.
Cabot Wealth Advisory 11/28/11 - The Toughest Market to Analyze
On Monday, Cabot Options Trader Editor Rick Pendergraft discussed why current market conditions are making it so difficult to determine the direction it's headed. Rick says that the market's fundamentals are decent, but with investors fleeing equities, many charts are damaged. Instead of hiding out in long-term Treasuries, Rick recommended two funds that he thinks are perfect for right now. Featured investments: iShares iBoxx Investment Grade Corporate Bond Fund (LQD) and the SPDR Barclay's High Yield Bond Fund (JNK).
Cabot Wealth Advisory 11/29/11 - Three Yields for Current Conditions
On Tuesday, Dick Davis Digests Editor Chloe Lutts discussed three recommendations from the latest Dick Davis Dividend Digest. Each one is a conservative dividend payer with relatively low correlation to larger market moves. Featured stocks: Macquarie Infrastructure Company (MIC), White River Capital (RVR) and Linn Energy (LINE).
Cabot Wealth Advisory 12/1/11 - Simple Rules for Stock Investing?
On Tuesday, Cabot China & Emerging Markets Report Editor Paul Goodwin discussed why even if you have a system of simple rules for stock investing, the implementation of them can be devilishly difficult. Paul also discussed a Chinese stock that has all the hallmarks of being a big winner once its chart gets on track. Featured stock: NetEase.com (NTES).
Until next time,
Editor of Cabot Wealth Advisory