Cabot Wealth Advisory for 01/2016
Apple (AAPL) - Buy, Hold or Sell?
Last week, Apple presented the bad news that iPhone sales growth has been slowing, and the stock gapped down in response. AAPL is now 29% off last year’s high (hit in April), and more and more investors are wondering what they should do with Apple—buy, hold or sell.
Investing Resolutions for 2016
The end of a year is a great opportunity to make a New Year’s Resolution to be a better investor. The question is: what should you resolve? The experience of people who vow to lose weight or stop smoking or learn Chinese should give you a little guidance here. Huge resolutions often lead to huge failures.
5 Stocks to Watch in 2016
One of my favorite ways to find leading stocks is to look at the list of stocks hitting new highs, to see if there are any new names popping up. So in preparation for 2016, I took a look at the stocks that were hitting new highs on the NYSE late last week.
Using Buy-Writes to Generate Income
If you had invested exclusively in the S&P 500 ETF (SPY) last year, you would have finished the year down 0.81%. But if you had applied the very basic options strategy called a Buy-Write, you would have easily beaten those results.
10 Dogs of the Dow for 2016
The “Dogs of the Dow” is an investing strategy that involves trading only once a year, as the calendar rolls over. Over time, the strategy has a track record of slightly outperforming the Dow itself, beating the index in 9 of the last 14 years, albeit by an average of 1%. But the strategy’s most attractive characteristic—aside from its catchy name—is its simplicity. All you do is buy the 10 highest-yielding stocks in the Dow Jones Industrial Average at the beginning of each year. Next year, you replace any stocks that are no longer among the 10 highest yielders.
The Three Best Stocks of 2015
Even though the market rebounded heroically in October, that August correction was just too strong to overcome. Cabot’s growth advisories protected subscribers by moving heavily into cash when things were stormy, but we didn’t have the kind of steady tailwind from the market that produces bushels of big performers. Today I would like to review three top performers of 2015.
Amazon's Dash Button
A few days ago, I was poking around on Amazon’s website, mainly to see what features of that site Cabot could emulate when we redo our website later this year, when I stumbled on a bunch of Amazon Dash Buttons. I was confused. What is a Dash Button? What does it do? Why should I click on it?
10 Best and Worst Small Caps of 2015
At the end of the year, I like to look back at what worked in small-cap stocks. The exercise is useful for reminding investors what to look out for. I’m also always curious to see what stocks made investors really rich, and which ones caused the tears to flow. Here's my list of 10 best and worst small caps of 2015.
The Market’s Collapsed. Now What? A Q&A with Mike Cintolo
Given all that’s gone on in the market during the past couple of weeks, we thought it best to just get to the heart of what is on investors’ minds. In the following interview, I asked Cabot’s V.P. of Investments, Mike Cintolo, for his thoughts on the market, what scenarios he sees potentially playing out and, of course, his general recommendations for what to do now.
How to Survive a Volatile Market
Here's my suggestion on how to survive this volatile market: “sell and tighten.” That means you should sell any stock in your growth portfolio that hands you an unacceptable loss and tighten your stops for the rest. As a rule of thumb, you should set a maximum loss limit of no more than 10% to 15% on any growth stock. The name of the game is capital preservation, and selling and holding the cash is the simplest and safest way to do that.
Powerball Lottery Losers
There are two kinds of losers in the lottery. The first are those who play and don’t win. That’s the fate of the vast majority of participants in lotteries these days, and it’s not such a bad fate (unless you’re betting the rent money.) The second are those who win big. Yes! History is full of people who won millions in the lottery and ruined their lives.
More Top Performers of 2015
In my January 9 Cabot Wealth Advisory, I wrote about the three top performers of 2015. Today, I take a look at the next nine top performers like NeoPhotonics (NPTN), 5 Intra-Cellular Therapies (ITCI) and others.
Is It Time to Rebalance Your Portfolio?
The Standard & Poor’s 500 Index and Dow Jones Industrial Average are down about 8.5% thus far in 2016. Stocks that soared last year are getting clobbered this year. No wonder investors are worried! But now is not the time to panic! The current stock market is frustrating, for sure, but you can pursue strategies that will lead to better performance in the months ahead.
How Growth Investors Get Through a Market Winter
It's important to keep the watch list when the market is volatile. Watch lists change pretty constantly, as promising stocks don’t pan out and more attractive candidates appear. They’re not a buy list until you get a buy signal from the market. But they give you a head start on the large population of discouraged investors who haven’t had the heart to sell their losers and won’t get excited again until a new bull market has been going on for months.
Five Widespread, but Wrong, Ideas
Way back in eighth grade, my history teacher, Max Pofcher, called me an iconoclast. And Mr. Pofcher was right. Being an iconoclast—or at least a nonconformist—has paid dividends in my life, not least by allowing me to see the stock market in ways different from the average investor. And when you can act contrary to the herd, you can make a lot of money! So, without further preamble, I present Five Wrong Ideas, otherwise known as five things most people believe that I don’t.
5 Small Caps to Play a Market Bounce
When the market turns back up, having the shopping list ready will save a lot of research time, and money can be quickly directed into those names that have convincing uptrends. Here are five mid- and small-cap software stocks that are on my radar as potential buys for investors. With forecasts suggesting cloud software will drive 50% of all software investment through 2019 (equal to average annual growth of 18.3%), these stocks deserve a spot on any growth investor’s wish list.
5 Ways to ID a Market Bottom
How will I know that the market has bottomed and it’s time to jump back in? There are the five key characteristics I look for—characteristics that have appeared at nearly every major market bottom for the past 70 years. Here they are.
In the Stock Market, the Readiness Is All
Market transitions—and I’m not sure whether we’re in one now or are just getting faked out again—only cause major damage if you just sit there, either because you don’t have a plan, or you don’t have the emotional resources to take action. The readiness is all