Year in Review, Part 4

Year in Review, Part 4

Rigidly Defined Areas Of Uncertainty And Doubt

Stock Market Video: Holiday Edition

In Case You Missed It

Happy Holidays! I hope you're having a wonderful season, surrounded by family and friends, with lots of food and fun.

As I mentioned the last few weeks, I'm highlighting some of our best advice from 2011 as a way to prepare for whatever the market hands us next. Today is the last part in the series and I'm going to focus on the fourth quarter, October through December, when the market was anything but kind to investors.

I kicked off October with a Q&A with Cabot Small-Cap Confidential Editor Thomas Garrity in honor of that newsletter's fourth anniversary. Read the issue here.

Cabot China & Emerging Markets Report Editor Paul Goodwin wrote about the phenomenon of "wearing out the weak hands," which is a term market insiders use to describe investors who sell because they don't have a lot of conviction. Read the issue here.

Cabot Market Letter Editor Mike Cintolo wrote about the maxim the company is not the stock and why perception is reality in the stock market. Read the issue here.

Cabot Benjamin Graham Value Letter Editor Roy Ward wrote about the Warren Buffett approach to investing and seven guidelines to follow when emulating his system. Read the issue here.

Mike Cintolo was back later in October with an issue about why the market teaches bad behavior and how you can avoid falling prey to it. He also discussed the math of falling stocks--and why a stock often dishes out punishment for far longer than most investors believe possible. Read the issue here.

I conducted an interview with Mike a little while later in honor of the anniversary of Cabot Market Letter, our flagship newsletter and one that Mike edits. He discussed some of the lessons Cabot's founder Carlton Lutts taught him as well as his favorite investing story. Read the issue here.

Paul Goodwin wrote about how the market wants to take your money and why learning rules and discipline will stop you from making poor investing choices. Read the issue here.

Cabot Stock of the Month Editor Tim Lutts wrote about the Crash of 1907 and how it relates to the current market. He discussed how the long-term trend of the market has always been up and why that should give you hope that a recipe for a bull market is brewing. Read the issue here.

I wrote an issue focused on education and investing basics that are important for both beginning and seasoned investors. I recommend reading it if you're new to investing and Cabot or if you just want to brush up on some tried-and-true educational information. Read the issue here.

Tim Lutts discussed the exciting times ahead for observers of and investors in the automobile industry. He reviewed the companies in the sector and discussed a couple with great potential. Read the issue here.

Paul Goodwin wrote about his belief that the VCR is the most revolutionary communications and broadcasting innovation in his lifetime. He also recommended a safe stock in the industry that could reward you for years to come. Read the issue here.

I was inspired to look into 10 stocks that could benefit from consumer spending during the holiday season and beyond. One issue (which you can read here) focused on growth stocks, while the other issue (which you can read here) focused on value stocks.

Cabot Options Trader
Editor Rick Pendergraft wrote about why the current market is one of the toughest to analyze and recommended two investments that could boost your portfolio during this volatile time. Read the issue here.

Paul kicked off December by writing about some simple rules for stock investing and the difficulty investors can face when implementing them. Read the issue here.

That's all for this week! I hope you enjoyed my re-caps of 2011 and that you are ready to look ahead to what 2012 has in store.

Rigidly Defined Areas of Uncertainty and DoubtHere's this week's Contrary Opinion Button. Remember, you can always view all of the buttons by clicking here.

Rigidly Defined Areas Of Uncertainty And Doubt

The original phrase, by Douglas Adams in The Hitchhiker's Guide to the Galaxy, was "We demand rigidly defined areas of doubt and uncertainty." It's uttered by a philosopher who argues that the Quest for Ultimate Truth is the inalienable prerogative of working human thinkers, and not suitable for computers. In investing, there are facts, which relate to the past, and there's doubt and uncertainty, which characterize the future ... and which you can only get wrong by trying to know.


For this week's Stock Market Video, the last one of the year, Cabot China & Emerging Markets Report Editor Paul Goodwin decided to do something a little different to look back at all that has happened in 2011. Paul recited a poem that he wrote re-capping both the high lights and low lights of the year to the beat of "Twas the Night Before Christmas." Click below to watch the video!

Stock Market 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 12/19/11 - Flying up Front

On Monday, Cabot Publisher and Cabot Stock of the Month Editor Tim Lutts discussed his experience flying in the cockpit of a plane from London to Boston in 2000 and new technologies that will make air travel more efficient than ever. Tim also wrote about why he thinks the market's next move is up and a great healthcare stock. Featured stock: Health Management Systems (HMSY).


Cabot Wealth Advisory 12/20/11 - Forget Gold ... Invest in this Metal Instead

On Tuesday, you heard from Nathan Slaughter, editor of StreetAuthority's Scarcity & Real Wealth and Energy & Income. Nathan discussed a metal that's in high demand and could lead to big profits for investors.


Cabot Wealth Advisory 12/22/11 - An Interview with Mike Cintolo

On Thursday, I did an interview with Cabot Market Letter Editor Mike Cintolo in which he looked back at the wild ride that was 2011 and tells us what he thinks is in store for 2012. Mike provided a thorough analysis of this challenging year and a detailed look at what could happen in the months ahead.

Until next time,

Elyse Andrews
Editor of Cabot Wealth Advisory

Stock Picks


This stock could rise 50% before becoming fairly valued.

This hot technology company is growing like a weed, thanks to products that speed up cloud communications.

This stock is somewhat well known, but far from well loved.

Cabot Wealth Advisory

How to Find Great Growth Stocks in a Scary Market

By Paul Goodwin on October 21, 2016

Even in today’s scary market, there are great growth stocks out there. Here’s how to find them—and how to avoid the kind of losses that can haunt your portfolio.Read More >

Buy This Small-Cap Tech Stock as the Nasdaq Thrives

By Tyler Laundon on October 20, 2016

Technology stocks are thriving, as the Nasdaq has been outpacing the S&P 500 and the Dow for months. And one small-cap tech stock in particular is outperforming the industry’s big boys. Read More >

Is Allergan (AGN) Still an Undervalued Stock?

By Crista Huff on October 18, 2016

Five months ago, Allergan (AGN) was an undervalued stock with tons of growth potential. It's up 21% since then, but still has plenty of upside. Here's why.Read More >