Stock Market Video
Let's Do Lunch
In Case You Missed It
In this week’s Stock Market Video, Mike Cintolo, Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader, discuses the market's wild volatility this week and reiterates the importance of focusing not on the news, but on how the market reacts to the news. Mike does highlight some abnormal action this week, but while he still advises holding some cash and keeping stops on losers and laggards, he's also holding on tightly to his liquid leaders (most of which he evaluates in the video) and is looking for a breakout to new highs to floor the accelerator. Click below to watch the video.
In the middle of October, I hosted a webinar called Lunch with the Analyst. It was an informal affair, featuring me sitting in front of a Mac in Cabot’s conference room talking about stocks. In just 60 minutes, I gave a rundown on what was happening in the markets (both U.S. and emerging market stocks) and gave a few recommendations about stocks that I felt good about.
Up to that point, it was pretty much an online version of Cabot Wealth Advisory, but with pictures.
But during the last 20 minutes of the program, I took questions from attendees about stocks they were glad they owned but were thinking about selling, stocks they were thinking about owning and stocks they wished they never bought.
It was short. It was free. And I think I gave some good advice. (I know the Oscar Wilde quote that says, “It is always a silly thing to give advice, but to give good advice is absolutely fatal.” But it’s what I do for a living, so I’m inured to the danger. The quote is a line from Wilde’s play Lady Windermere’s Fan, btw.)
Lunch with the Analyst was my idea, and there was some discussion about whether we ought to do it and why. Here are my reasons for wanting to give it a try.
First in my mind was the idea that equity investing is a lot like baseball; a very complicated game with so many rules that it takes years to get a handle on it. And that means that there are lots of people who are totally discouraged about buying and selling stocks. And if I can make owning stocks a little simpler and a little less forbidding, I might be able to get more people into the game.
Even more important, I might be able to help them make some profit, which is something most investors only achieve after making some expensive mistakes.
Second, any opportunity to take questions from investors is valuable to me. It lets me know what people are interested in (or worried about) and challenges me to give reasonable, useful answers.
Most questions come down to three things: Should I buy this? Should I sell this? And what if the market does this? Knowing how to advise people on those questions is how I earn my bread, and it pays me to get better at it.
Third, I spend all day, every day, either on the Internet looking at what’s going on in the financial world or writing about what’s going on in the financial world, especially in China and other emerging markets. And being forced to reduce all that information into a coherent message is a useful discipline. I’ve always believed that we find out what we think by saying it.
So, anyway, I’ll be online at 1:00 EST on December 16 talking about Chinese consumer stocks. I’ll also run through a presentation on the condition of the market and will give a few recommendations of stocks that I favor in China and elsewhere. And, of course, I’ll be taking as many questions as I can. It will all take just an hour, and since it’s free, you know it will be worth the price. I can promise you an interesting and useful time.
Btw, if you want to ask a question about a stock, be sure to include in your question whether you’re asking about buying or selling. And if the question is about selling, tell me the price you bought the stock at.
Here's this week's Fortune Cookie. Remember, you can always view all previous Fortune Cookies here and Contrary Opinion buttons here.
"All I ask is the chance to prove that money can't make me happy."—Spike Milligan
Tim’s comment: As we approach the holiday season, this quote reminds me that some economists have concluded that gift cards (or cash) are the most rational gifts, as recipients can use them to buy exactly what they want (or need). However, the giver of cash forgoes the opportunity to give a gift that makes an emotional connection, and that’s an opportunity that shouldn’t be relinquished lightly.
Paul’s comment: I’m personally grateful to Spike Milligan for his part in the British comedy series The Goon Show, which was a major formative influence on the lads who founded Monty Python, which was, in turn, a major formative influence on me. I’ve seen many variations on Spike’s quip, including: “Money isn’t everything, but it’s way ahead of whatever’s in second place,” and “Money isn’t everything, but the lack of money is.” But Spike’s is funnier.
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 Options Trader’s Chief Analyst, Jacob Mintz, details how buying put options can protect an equity investor from the disastrous performance of the retail stocks that many thought were safe from big moves.
Tim Lutts, Chief Analyst of Cabot Stock of the Month, writes to thank our readers and subscribers. He also describes the challenge of providing good advice for a diverse group with very different investment goals.
Growth expert Mike Cintolo describes the lure (and the dangers) of stocks with low share prices and why his annual Low-Priced Stock Report for 2016 is such a favorite among adventurous investors. Stock discussed: Fleetmatics (FLTX).Have a great weekend,
Chief Analyst of Cabot Emerging Markets Investor and
Editor of Cabot Wealth Advisory