Cabot Stock of the Month Issue: October 9, 2025

Market Review

The markets don’t seem too swayed by the government shutdown, as they continue to remain near all-time highs.

Economically speaking, we’re not getting some reports, like inflation or unemployment, due to the shutdown. But manufacturing seems to be holding up; real estate prices continue to moderate (up 1.8%); existing home sales were down 0.2%; and consumer confidence dipped a bit. Not much to rattle the markets.

But as our analysis shows, not all stocks and industries have risen on this market advance. While all market-cap levels are ahead for the year, Growth stocks still rule, with large caps up 17.76% YTD, small-cap growth, +13.87%, and mid-cap growth up 13.29%.

Sector-wise, Technology continues to lead, with average gains of 23.69%, followed by Communication Services (+20.35%) and Utilities (+18.60%). The laggards are mostly in the black, with Energy up 4.31% for the year, followed by Real Estate (+2.43%) and Consumer Staples(-1.46%).

Our portfolio is doing well, and I’m continuing to widen our diversification, which I’m doing this month with the addition of a silver company.

Feature Recommendation

This month’s recommendation comes from Clif Droke, Chief Analyst of Cabot Turnaround Letter. While Clif is well-versed at finding companies that have hit some challenges but look ready to bounce back, he is also a long-term metals and mining expert.

With that in mind, he offered this idea.

Pan American Silver (PAAS): In the Right Place, at the Right Time

Here’s what Clif had to say about PAAS: “I believe Pan American Silver will continue benefiting from geopolitical and inflationary challenges.

“With silver prices rising, investment demand in the metal has increased to nearly twice as much as before. Industry analysts also see silver imports in some of the world’s biggest jewelry-consuming countries picking up in the coming months, with the annual total likely to be between 5,500 and 6,000 metric tons in India alone.

“Also, with the gold/silver ratio still very favorable from a historical perspective, silver prices could rally even significantly more than they have in recent months. Both of these developments are potentially bullish for the big miners like Pan American.

“The U.S. Department of War (formerly known as the Defense Department) in January released its fiscal 2025 ‘investment strategy’ outlining how it will use its authorities (including loans, guarantees and credit-based financial products) to support companies in ‘critical’ tech or supply chain segments. According to the document, industry segments of ‘particular interest’ for the federal program include:

“’…advanced bulk materials; advanced manufacturing; autonomous mobile robots; battery storage; biochemicals; bioenergetics; biomass; hydrogen generation and storage; microelectronics assembly, testing, and packaging; microelectronics manufacturing equipment; microelectronics materials; nanomaterials and metamaterials; sensor hardware; spacecraft; and synthetic biology.’

“This list, I maintain, can be taken as a veritable ‘cheat sheet’ as to which segments of the market investors should be focused on going forward. And perhaps not surprisingly, most of the aforementioned industries have posted excellent returns in the year to date.

“Aside from direct private sector investments, the issue of strategic minerals/materials was also underscored recently when the Secretary of the Interior added silver to the existing U.S. List of Critical Minerals (LCM). The parameters of this list include materials that: 1) might become unavailable due to trade disruption, 2) rely on a sole producer, and 3) play an outsized role in the economy—particularly the defense sector.

“As one commentator has noted, ‘This is an important change that could have important implications for silver prices in the weeks and months ahead.’ I agree with this assessment, and I also believe it was a catalyst behind the recent rally to new highs in Pan American Silver.

“Another catalyst, Pan American Silver recently reported very strong results relating to the discovery of multiple high-grade silver zones at its La Colorada mine in Zacatecas, Mexico.

“The exploration program drilled approximately 65,000 meters across 170 holes between last November and June. The drilling extended mineralization eastward along the NC2 and Mariana vein systems and identified new high-grade zones in the southeastern portion of the property.

“Notable drill results include intercepts of 3,844 grams per ton silver over 3.66 meters and 5,876 grams per ton silver over 2.27 meters.

“Pan American identified a new style of high-grade silver and base metal replacement mineralization at the contact between volcanic and sedimentary host rocks. This discovery represents a previously unknown mineralization style for the La Colorada vein system, according to the company.

“Pan American said exploration development has advanced over 300 meters east on four levels of the mine, which means the company isn’t just drilling—it’s physically developing new tunnels into the mineralized zones. This will allow for future production access in the event the results justify expansion.

“Follow-up steps are likely to include additional infill drilling, updated resource/reserve calculations and possibly plans for scaling up mining in the newly defined areas.

“In more good news, Reuters recently reported that India’s silver imports are expected to ‘gather momentum in the coming months,’ supported by stronger investment and industrial demand that has already absorbed the surplus from last year’s elevated shipments. This development carries potentially bullish implications for PAAS.

“According to the report, ‘Higher imports by the world’s biggest silver consumer could give further support to global prices that are close to their highest level in 14 years.’

“Chirag Thakkar, CEO of silver importer Amrapali Group Gujarat, noted that with silver prices rising, investment demand has increased to nearly twice as much as before. Additionally, Thakker told Reuters that silver imports are set to pick up in the coming months, with the annual total likely to be between 5,500 and 6,000 metric tons.

“The industry had previously expected a sharp decline in India’s 2025 imports after shipments more than doubled last year to 7,669 tons. But strong demand in recent months has depleted stocks of the metal, prompting banks and dealers to increase imports.

“On a related note, inflows into silver ETFs reached 17.6 billion rupees in July and 19 billion rupees in August, well above the last fiscal year’s monthly average of 6.7 billion rupees, according to data from the Association of Mutual Funds in India.

“With silver undervalued compared to gold (per the gold/silver ratio), and with the white metal facing huge potential demand (as an electrical conductor) from the extraordinary power generation demands relating emerging technology applications like AI and alternative energy, Pan American is well positioned to benefit from the bullish longer-term trends. Buy”

Pan American Silver Corp. explores, develops mines, extracts, processes, refines, and reclaims mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile, and Brazil. The company explores for silver, gold, zinc, lead, and copper deposits.

Institutions view PAAS very favorably, with institutional holdings now claiming 55% of the company’s outstanding shares. They are well-invested, as the top 25 shareholders own 38% of the company.

As you can see from the following chart, the future looks bright—and shiny—for PAAS.

Source: TSX:PAAS Earnings and Revenue Growth September 9th 2025

I consider these shares as aggressive. Buy

About the Analyst: Clif Droke, Chief Analyst, Cabot Turnaround Letter

Clif Droke is Chief Analyst of Cabot Turnaround Letter. For over 20 years, he has worked as a writer, analyst and editor of several market-oriented advisory services and has written several books on technical trading in the stock market, including Channel Buster: How to Trade the Most Profitable Chart Pattern and The Stock Market Cycles, as well as Turnaround Trading & Investing: Tactics and Techniques for Spotting Winning Turnaround Stocks.

In this upward market, I was interested to find out Clif’s thoughts on any undervalued sectors, as well as his reactions to recent government/market headlines. Here’s our interview:

Nancy: Clif, in one of your recent updates, you discussed “government intervention” in stocks, and notably sold 25% of your Intel (INTC) holdings. I recently addressed this in one of my Cabot Wealth Daily articles, as I’m concerned about the long-term implications of such interference. Would you please elaborate on your thinking on this issue so that my subscribers can gain more understanding of the pros and cons?

Clif: Sure, Nancy. I see government intervention as a two-way street for stock investors. On the one hand, it has certainly benefited investors in Intel (including in the Cabot Turnaround Letter), with shares rallying strongly in the wake of the White House’s recent announcement of a nearly $9 billion federal stake in the company.

There was also the beneficial result to investors in MP Materials (MP) after the Department of War (formerly the Defense Department) took a 15% stake in the firm this summer. And on the commodity market front, we have the recent example of silver being included on the government’s existing U.S. List of Critical Minerals (LCM), a development that had a positive impact on Pan American Silver (PAAS).

On the other side of the street is Kenvue (KVUE), which serves as a recent example of how federal intervention in the financial market can upset certain stocks. This, of course, was the result of U.S. Health and Human Services Secretary Robert Kennedy Jr.’s recent suggestion that pregnant women should limit their use of Kenvue’s Tylenol, claiming that its active ingredient, acetaminophen, may increase the risk of autism if taken during pregnancy. The stock’s reaction to Kennedy’s press conference has been anything but positive, with shares plummeting over 16% in its wake, and with Kenvue’s market cap being reduced by over $6 billion.

The Kenvue situation, I think, is a cautionary tale of how the intersection of politics and finance can create problems for investors. It also serves as a reminder of how, from this time forward, investors will need to ask this question before initiating new equity long positions: “Could the financial asset I’m interested in acquiring be potentially influenced through direct federal intervention?”

Of course, the answer to that question is more complex and demanding than a simple “yes” or “no” can provide. There’s ultimately no way of predicting (at least in most cases) when a future intervention might occur. But the precedent has already been established, and the trend is clear: The government has growing strategic interests in various segments of the financial market, with additional stakes in private companies likely to be made going forward.

On that score, CNBC recently published an article that speculated that a number of additional rare earth miners could be targets of the Trump administration for federal investments in support of the EV industry and defense sector. The government’s embrace of investment activism has clearly got Wall Street talking.

That said, our job as investors is to discern which industries—and companies, if possible—are most likely to be subject to official policy actions and make our allocations accordingly. Because like it or not, federal intervention in the financial market is the new paradigm and isn’t going away any time soon.

Nancy: Gold prices have just gone through the roof, and silver prices have progressed. Where do you think gold prices go from here?

Clif: I see gold prices headed to the nearest psychological round number, which is $5,000 per ounce. I’m not the only one who sees this development as a virtual inevitability, with even Goldman Sachs outlining scenarios whereby this price objective could be reached.

The driving force behind the gold market’s strength is, in my view, a combination of persistent inflation and geopolitical hedging on the part of investors. Central banks worldwide are also purchasing gold at a solid pace this year, continuing a trend that began in 2009 (when their collective gold holdings bottomed out). This is the result of a move out of dollar-denominated assets and into bullion, which in turn is part of a desire to “de-risk” from U.S. military, trade and economic policies that many countries regard as unsettling.

I also believe that, given the developing “perfect storm” of persistent inflation, with growing militarism, sovereign credit and cybersecurity risks, it’s entirely possible that gold could eventually reach $10,000 an ounce before all is said and done.

As crazy as this might sound, it’s not without precedent, as the yellow metal’s price soared by 2,000% between 1970 and 1980, when it peaked at $850. From the current price of just under $4,000 an ounce, a move to $10,000 is just 150%, which seems puny by comparison.

However, my main concern with gold prices rallying to $10,000 is that it would seriously call into question the official narrative that inflation is easing. Since such a move could undermine confidence in the dollar, I wouldn’t rule out the possibility of some form of government or central bank intervention to protect the dollar’s credibility—even if that comes at the expense of gold.

Nancy: Most of your portfolio in Cabot Turnaround Letter is invested in mid-cap and large-cap stocks, but you have recently added a small cap to your holdings. Are you seeing a resurgence in small caps in the near future?

Clif: Yes, absolutely. In fact, I discussed this issue in a recent newsletter in which I made the case that the Federal Reserve’s easing policy should benefit the small caps in general.

For the last couple of years, the Treasury yield curve was inverted, which suggested tighter credit conditions and weaker economic growth expectations, both of which favor the more established large-cap companies with fewer credit risks. Small-cap companies, by comparison, are more heavily reliant on credit markets and are therefore a lot more vulnerable to tightening credit.

On a related note, a recent Charles Schwab study found that, compared with large-cap companies, “small caps have a larger share of debt coming due in the next four years, exposing them to potentially higher interest rates.” Until fairly recently, the fear of rising rates was a pressing concern on Wall Street, which in turn caused many institutional investors to spurn the small caps.

But recent signs now point to the early stages of a better interest rate backdrop, which could signal the start of a reversal of the prevailing “small cap bad” versus “large cap good” paradigm of recent years.

And with the yield curve now steepening, it points to more lenient credit conditions. And that favors smaller companies with greater growth expectations that can take advantage of the easier credit terms.

Granted, the current yield curve steepening isn’t particularly dramatic; indeed, today’s 0.57% spread is still relatively modest by historical standards. But some of that steepening is the result of short-term rates falling faster than long-term rates, instead of long rates rising sharply—a development that’s also more favorable to holding small-cap stocks.

Nancy: Which sectors do you find the most attractive right now? And which would you stay away from?

Clif: I’m seeing some attractive opportunities in the healthcare sector generally and biotech/pharma in particular. This dovetails with our discussion of federal intervention in the market, with the government’s recent deal with Pfizer (PFE) serving as an obvious catalyst for the biopharma stocks recently.

Specifically, several major pharmaceutical firms have lately been currying favor with the White House by announcing new investment projects in domestic manufacturing and research facilities—and it appears those efforts at courting the President are beginning to pay off. However, not all of the drug industry’s—or the broader healthcare sector’s—recent market strength is the result of this.

There are also some technical reasons to expect the Health Care Select Sector SPDR ETF (XLV) to be up strongly through the end of this year and even into next year. And based on what we’re now seeing with federal intervention taking place in the sector, this development appears to be underway already.

And as it relates to the falling interest rate environment mentioned above, the emerging rate paradigm also favors healthcare companies generally—and biotech and pharma companies in particular. Indeed, historical analysis shows that healthcare is a strong performer in the years following Fed rate cuts, since lower interest rates make borrowing costs cheaper, freeing up capital to fuel research and innovation while also allowing for easier financing of equipment and expansions.

I’m also still very bullish on the precious metals arena, including gold, silver and platinum. The latter metal in particular looks very good from a relative valuation standpoint and is, I think, poised to follow gold and silver’s lead in the coming months and year.

As for which areas of the market I’d avoid, I would be careful about being overexposed to consumer discretionary stocks right now, as they’re still facing tariff and inflation risks.

Nancy: What are the three to five most critical challenges to the growth of the stocks in your portfolio right now?

Clif: The biggest challenges to growth for our portfolio holdings right now, I think, are 1) recession risk from ongoing tariff, inflation and geopolitical headwinds; 2) risk from the aforementioned federal intervention in certain areas of the market (which, as mentioned, can cut both ways); and 3) potential federal interference in the precious metals market.

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Portfolio Updates

Tom Hutchinson, Chief Analyst of Cabot Dividend Investor, mentioned McKesson Corporation (MCK), noting, “The supply chain pharmaceutical company has risen 10% to a new all-time high after management raised profit guidance and long-term growth targets on Investor Day last Monday. McKesson raised its fiscal 2026 earnings forecast and raised long-term annual earnings growth targets to a range of 13% to 16% from 12% to 14%. The forecasts provided more clarity and raised targets beyond what had been expected. The market liked it. MCK hit a new high and has now returned over 35% YTD. Its market continues to grow all by itself because of the aging population. HOLD”

Earnings estimates are trending higher for McKesson, and analysts are attracted to the company’s double-digit revenue growth, its share repurchases, and its relative undervalued status. Continue to Hold.

Tom also updated his views on Ally Financial Inc. (ALLY), reporting, “Like several interest rate-sensitive stocks, ALLY rallied in September up until the Fed rate cut and then gave it all back and then some after the fact. The rate cuts are positive for this online banker as it deals primarily with car loans and lower rates tend to increase affordability, which should result in higher loan demand if the economy doesn’t weaken too much. It appears that investors sold the news when the rate cut happened. But we are still in a rate-cutting cycle and ALLY should continue to benefit going forward. HOLD”

Ally has a habit of beating Wall Street’s earnings expectations, with an average surprise for the past two quarters of 30.90%, including the last quarter when the company’s EPS topped out at $0.58, compared to analysts’ estimates of $0.43. Continue to Hold.

Curaleaf (CURLF) was updated by Michael Brush, Chief Analyst of Cabot Cannabis Investor, who noted, “Curaleaf is opening stores in Apopka, FL, and Girard, OH. The openings take Curaleaf’s store count to 69 in Florida, five in Ohio, and 157 nationwide. Floridians may get to vote on rec-use legalization in a 2026 referendum. If they approve the change this time (the 2024 vote was close), that will benefit stores building out a presence in the state. The Ohio cannabis market continues to expand, following legalization of rec use in the summer of 2024. Buy”

Curaleaf is forecasting growth in revenues to $1.5 billion and $38.9 million in earnings by 2028. The company will report quarterly earnings on November 5. Analysts expect a loss of $0.08 per share on revenues of $317.17 million. Hold for now.

Michael also reviewed Green Thumb Industries (GTBIF), commenting, “Now that recreational-use sales are legal in Minnesota, Green Thumb is opening five stores in the state in Brooklyn Park, Eagan, Mankato, New Hope, and Willmar. The company also plans to open stores in Baxter, St. Paul and Cloud. Green Thumb has operated medical cannabis stores in Minnesota cannabis since 2021. The state just launched rec-use sales in the middle of September.

“Minnesota has finally launched state-wide, recreational-use cannabis sales. While some tribal reservations have been allowed to sell cannabis for a while, the development marks the start of broad legal sales throughout the state. Our Green Thumb Industries (GTBIF) will benefit, as one of the state’s main retailers. It now offers RYTHM, Beboe, and Dogwalkers branded products at five of its RISE stores, and it will open more. Minnesota is surrounded by prohibition states, so retailers should benefit from cannabis tourism. Buy”

Shares of Green Thumb Industries had a nice boost after its board of directors authorized a $50 million share repurchase program.

Let’s Continue to Hold GTBIF for now.

International Business Machines (IBM) was updated by Carl Delfeld, Chief Analyst of Cabot Explorer, who said, “Shares were up 7% this week as IBM shared impressive results of a quantum-powered bond-trading experiment conducted with the leading international bank HSBC. The company expects to unveil its first large-scale, fault-tolerant quantum computer in 2029. Buy a Half”

In its latest quarter, IBM’s revenues were $16.98 billion, beating forecasts of $16.59 billion, and EPS was $2.80, surpassing analysts’ estimates of $2.64, up 15.2% jump from the same quarter last year. The company boosted its full-year outlook to $13.5 billion+. EPS for this year is forecast to increase 7.7% year over year, to $11.12, and up 7.3% in fiscal 2026, reaching $11.93.

Investors greeted very positively the news that IBM introduced “the world’s first-known quantum-enabled algorithmic trading partnership with HSBC Holdings plc (HSBC).” Further, the company said, “The collaboration proves that quantum computers can tackle real-world financial challenges, with IBM’s quantum systems boosting bond trade prediction accuracy by up to 34% over classical methods.” Continue to Hold.

Carl also noted that Oberweis Micro-Cap Fund (OBMCX) remains a Buy in his portfolio. The shares are a Hold in ours.

Updating, Coeur Mining (CDE), Carl reported that “Shares were up 8.4% this week following last week’s 8.8% gain. Silver is now performing better than gold. Buy a Half”

CDE will report its third-quarter 2025 earnings on October 29. Analysts are predicting EPS of $0.18 on $547 million in revenues.

Our shares of CDE are up more than 100%. Let’s take some profits by Selling Half of our holdings.

Clif also noted that “SiriusXM Holdings (SIRI) presented at the Goldman Sachs Communicopia + Technology Conference 2025 on Monday. The company outlined its strategic focus on the in-car subscription business and growth in advertising, with management offering higher free cash flow guidance for 2025.

“Specifically, SiriusXM raised its full-year 2025 free cash flow guidance by $50 million, to $1.2 billion, with a free cash flow target of $1.5 billion for 2027. Increasing both volume and rates for revenue growth is another focus.

“The top brass also reiterated its focus on in-car subscription enhancements and expanded advertising efforts, while further emphasizing that a ‘significant push is underway to improve monetization through new pricing tiers and strategic content investments.’

“On the capital expenditures front, the firm said on-satellite capital spend is expected to be at the lower end of the $450 to $500 million range. SIRI remains a Buy in the portfolio.”

As I’ve mentioned before, Warren Buffett has been buying up shares of SIRI recently.

The outlook for the shares still looks very interesting. With the average vehicle in the U.S. reaching 13 years old, the future looks bright for trade-ins to newer cars that will undoubtedly offer SIRI satellite radio. And young folks buying vehicles are all looking for the latest technology, and SIRI fits that bill, too.

The company is forecasting $1.15 billion in free cash flow this year, making the stock seem undervalued to me.

Sirius will report quarterly earnings on October 30. Analysts are forecasting $0.78 EPS on revenues of $2.14 billion. Buy

Chris Preston, Chief Analyst of Cabot Value Investor and Cabot Stock of the Week, updated BYD Company Ltd ADR (BYDDY), noting, “BYD rebounded nicely after a down week, up nearly 5%. The stock is still shy of its September high but has proven resilient in the face of a rare down quarter and news that Warren Buffett’s Berkshire Hathaway sold its entire BYD stake (at a 20x profit) in the first quarter.

“But BYD is succeeding in its mission to become a global brand, as it was reported that 20% of its global sales in 2025 will come from exports. Prior to this year, BYD did roughly 90% of its business in China, with less than 10% of its sales coming from exports. The company expects to deliver between 800,000 and 1 million cars outside of China this year. Total deliveries are expected to swell to 4.6 million units, up from 4.26 million deliveries in 2024 but short of the company’s 2025 goal.

“Meanwhile, BYD shares are 10x less expensive than Tesla’s (TSLA) and are trading well below their May peak above 19 – where we sold half our shares as the stock surpassed our initial price target. We are letting the remaining half ride and are convinced that the stock will reach new heights in the coming year. HOLD HALF”

BYD sold 11,271 cars in Britain last month, climbing from 1,150 last year, and overtaking popular brands including Mini, Land Rover, Tesla (TSLA) and Renault (RNO.PA) while also getting the company close to market leader Vauxhall.

Continue to Hold for now.

A10 Networks (ATEN) was updated by Tyler Laundon, Chief Analyst of Cabot Early Opportunities and Cabot Small-Cap Confidential, who commented, “A10 Networks shares perked up a little over the last week and are now trading right on their 200-day moving average line. Very little news since the Q2 report on August 6. Third-quarter earnings should be reported around November 4. Revenue is expected to grow by a little more than 8% this year. BUY”

The shares of A10 Networks were upgraded by BTIG from Neutral to Buy, with a price target of $22, based on the company’s strong earnings outlook. Continue to Buy.

Michael Cintolo, Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader, reviewed Oracle (ORCL), saying, “Oracle’s fresh breakout (in June) was followed by a giant earnings gap would usually lead to good things ... but instead has seen tedious selling before a little support appeared this week.

“The reasons for the drop are well known at this point, from the large amount of borrowing Oracle is going to need to do to build out its infrastructure, to the fact that OpenAI (growing like mad but also burning cash) accounts for most of its backlog, which adds uncertainty.

“Even so, there’s also the chance everything goes according to plan, with many billions of dollars of future business likely being booked this quarter (reports surfaced two weeks ago that a $20 billion-ish deal with Meta was being discussed) as the cloud infrastructure business grows mightily this year (up 77%).

“The firm does have an upcoming conference (AI World), October 13-16, that should provide more detail on its backlog and any deals, and thus could move the stock. All in all, we still believe ORCL has huge, huge potential, but we’re not complacent—we’ll stay on Hold, with a drop toward 265 being very iffy, while a strong resumption higher could have us averaging up. HOLD”

Oracle introduced new role-based artificial intelligence agents designed to “help marketing, sales, and service leaders improve efficiency and find new revenue opportunities.” These agents were gifted to existing customers, free of charge.

Continue to Hold.

Our newest recommendation, Enterprise Product Partners (EPD), was updated by Tom Hutchinson, who commented, “The midstream energy partnership is having a sluggish year compared to the past several years. EPD has returned just 4% YTD. Energy has been weak this year and a consolidation in the midstream space was probably due. But things are about to get better. Enterprise has $6 billion in new projects coming online in the second half that are sure to boost growth. In addition, the trade deal with Europe should ensure high NGL volumes for years to come. EPD is a great buy while it’s still sleeping (with a big fat yield) ahead of likely better days. (This security generates a K1 form at tax time.) BUY”

EPD has increased its dividend payout for 27 consecutive years, making the shares very attractive to income investors. Continue to Buy.

Portfolio

*Aggressive (A), Moderate (M), Conservative (C)
**The purchase price of BYDDY has been adjusted to reflect a 6-for-1 split on July 30, 2025.

ETF Strategies

Our ETF positions are still doing great—up about 34%, on average. With that in mind, I’d like to take some chips off the table, so let’s Sell Half of our holdings in iShares Core S&P 500 (IVV) (which is up 48.35%).

Our Watch List continues to include the following ETFs:

S&P 500 Low Vol Invesco ETF (SPLV)

Information Technology ETF Vanguard (VGT)

ETF Spotlight

In this section of the newsletter, I highlight one of our portfolio ETFs, showcasing its largest holdings and past returns so that you can decide if the ETF fits into your investment strategy. Here is this month’s featured ETF:

iShares US Healthcare ETF (IYH) is a 4-star-rated fund that generally will invest at least 80% of its assets in the component securities of its underlying index. The underlying index measures the performance of the healthcare sector of the U.S. equity market. The fund is non-diversified.

Top 10 Holdings

Trailing Returns

Day End

as of 10/06/2025

As a refresher, here are my recommended allocations for our stock and ETF portfolios, based on age and risk tolerance:

Sample Stock/ETF Portfolios

Most financial planners recommend that investors tailor their portfolios around their age and risk tolerance, such as the ones I’ve recommended in my Cabot Stock of the Month newsletter:

By Age:

By Personal Risk Tolerance:

*Aggressive (A), Moderate (M), Conservative (C)

And here are some sample portfolios, according to age and risk tolerance:

Age 0-40

Aggressive Portfolio

Moderate Portfolio

Conservative Portfolio

Ages 41-60

Aggressive Portfolio

Moderate Portfolio

Conservative Portfolio

Ages 60+

Aggressive Portfolio

Moderate Portfolio

Conservative Portfolio

ETF Portfolio

*Aggressive (A), Moderate (M), Conservative (C)

**Purchase price reflects a 3-for-1 stock split

Silver—Still Room to Grow

As you can see from the chart below, silver prices were in the doldrums for much of the past decade. But beginning in mid-2024, that radically changed!

In fact, industry experts expect the metal to continue its meteoric rise, as shown in the following predictions:

Short to mid-term (2025-2030): $50/ounce

Long term (2030-2040 and beyond): Maybe $100, or more!

This breakthrough is due to several reasons:

Rapidly Growing Industrial Demand. More than 50% of silver’s demand is coming from industrial applications, including:

Solar Energy, for use in photovoltaic (PV) cells, which are used in solar panels.

Electric Vehicles (EVs), as each EV requires up to 50 grams of silver for batteries, wiring, and sensors.

Expansion of 5G Technology & Electronics, which require silver for its conductive properties.

Inflation and Economic Uncertainty, as silver is considered a safe-haven asset and has performed very well over time in inflationary environments.

Central Bank Gold Buying. Many central banks are increasing their gold reserves, signaling declining confidence in fiat currency stability. Historically, silver follows gold’s price movements, and with gold more than $4,000 per ounce, silver remains undervalued by comparison.

Supply Constraints and Market Manipulation. Silver is being consumed faster than it is currently being mined. And with the depletion of above-ground silver reserves, a supply squeeze has developed. A recent report from TD Securities noted that “Silver lease rates, which is the interest rate charged to borrow silver, has risen to ‘extreme levels,’ which demonstrates just how depleted stockpiles are in the inventory of the London Bullion Market Association.” The report also mentioned the doubling of silver imports in India, as well as the absence of Chinese buyers in the market, due to the Golden Week holidays, as contributing to the price rise.

The future continues to “glitter” for silver, and that should continue the boost to Pan American Silver’s fortunes.

Q&A

Welcome to our Q&A section. Here, I will answer investing questions from our subscribers. Please note that I cannot answer queries about specific stocks (unless they are in our portfolio), but I am happy to field any other investing inquiries. Please send your questions to: support@cabotwealth.com.

Here is a recent question that I have received:

Q. What is the purpose of setting price targets for stocks?

A. Not every analyst sets targets for their stock purchases. But I believe it helps investors, particularly new investors, develop discipline in buying and selling stocks. It takes the emotion out of the process and reminds you to take extra profits off the table or gives you a nudge to remove stocks that aren’t performing as expected from your portfolio.

I like to set a price target the day that I purchase a stock. I base my targets on the P/E of the stock, multiplied by expected future earnings.

I recommend that you at least think about what price your stock can achieve within 18-24 months, even if you don’t set a hard target. And that target should at least be a 30%-50% gain. If the stock doesn’t have that potential, keep looking.

The next Cabot Money Club Stock of the Month issue will be published on November 13, 2025.

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