Cabot Wealth Advisory for 05/2015
Why Retirement Investing Is Essential
No matter what you’re doing, you need to stop thinking about saving for retirement and start thinking about retirement investing.
Test Your Investing Knowledge: Stock Ticker Quiz
You might be surprised just how many stocks there are in the dividend-paying universe, and how varied they are.
The Truth About Cabot
The Cabot offices are in a beautiful brick building, originally constructed for the City of Salem as a branch library, using WPA money, in 1933-1934.
A Stock with a Good Risk-Reward Set-Up
I’m playing things cautiously for the moment. On the buy side, I’m looking for stocks that are (a) acting calmly despite the choppy action and (b) are near support, so I can use tight loss limits to limit risk if things go awry.
Trophy Growth Stocks
Growth investing is like deep-sea fishing for tuna. You spend a lot of time and effort preparing, getting the right equipment, selecting your path, using the right bait and starting your trawling run.
Are Stocks Overvalued?
Last week, Fed Chairwoman Janet Yellen caused a stir by suggesting that the stock market is overvalued, saying equity valuations are "quite high."
Four Rules for Measuring Expertise
I believe in expertise. I think people who have lots of knowledge and experience are likely to be more helpful to me in finding reliable information and solving problems.
Time for Sector Rotation?
In my latest issue of Dividend Digest, I discussed the “Sell in May and Go Away” adage—that time period from May through October when markets usually post smaller gains than the rest of the year.
Why Active Is Better than Passive in the Market
If you’re like most of us, chances are good that much of your retirement money is held in a 401(k) or other tax-deferred retirement plan that is allocated to stock markets and bond funds.
One Simple Rule that Can Save Your Portfolio
This week, I’m jumping on the “one simple rule” bandwagon that seems to be sweeping the Internet to give you an investing idea that can save your portfolio when things get stormy.
A Stock with an Attractive Price-to-Sales Ratio
Kevin Matras of Zacks Investment Research recently penned an interesting article. The article focused on one calculation to find undervalued stocks that will consistently outperform the stock market indexes.
Top 5 Reasons Most Investors Don't Make Big Money
In the market, instead of building on your strengths, the best way to improve results is to strengthen your weaknesses. If you’re very good at identifying low-risk buy points, for instance, that’s great … but there’s no reason to continue honing that skill. Instead, focus on identifying your biggest weakness—say, your ability to time the market—and build up that part of your game.
Three Monsters Under Growth Investors' Beds
As a growth investor, I’ve spent years studying the things that drive growth investors crazy, and I have a little list I’d like to share with you. I even have some recommendations for how to keep your blood pressure down while playing the growth game.
What Memorial Day Means to Me
For most Americans, Memorial Day marks the beginning of summer. Millions of families will cook out on the grill, drink beer and watch the Indianapolis 500. In the south, they’ll swim, and in the north, they’ll wish they could. At the same time, Memorial Day provides an opportunity—even if just for a moment—to remember those who gave their lives for our great country.
The Next Disruptive Technology
KPMG LLP analyzed the technology sector deals and forecasts that mobile, data and analytics, security, and “the cloud” will be the primary focus of M&A deals this year. Upon review of the stocks we’ve recently been recommending in the Digests, I heartily agree with this assessment. And one area that has whetted the appetite of both private equity and public company acquirers is fintech.
Five Options Trading Myths Exposed
Some of the savviest, most seasoned investors are still clueless when it comes to options trading. Others know the basics of options, but are skeptical about the perceived risks that accompany it. Sadly, that skepticism is rooted in a fundamental misunderstanding of how options work. That misunderstanding precipitates bad information, and that bad information has been repeated so often among options detractors that at a certain point it became myth.
Moderation in Growth Investing
I'm a big fan of moderation. I drive fast during my commute to Cabot, but I never want to be the fastest car on the highway. I like to watch television, but my family makes do with a 32-inch screen. And while I certainly like to eat and drink, I avoid restaurants with unlimited buffets; I can't eat all I can eat. But today, what I really want to write about is the path of moderation in growth investing.