As I mentioned last Saturday, I’m going to spend the next couple of weeks highlighting some of our best advice from 2011 as a way to prepare for whatever the market hands us next. Today I’m going to focus on the second quarter, April through June, when the market reached its peak for the year and also started the decline that would continue long into the fall.
At the beginning of April, I wrote an issue focusing on investing wisdom from the greats. It contained several quotes from the world’s best investors that can inspire you and guide you on your investing journey. Read the issue here.
Later in the month, Cabot’s Publisher Tim Lutts discussed a long-term perspective on Apple (AAPL) after the Nasdaq 100 cut the stock’s weighting and raised the weightings of stocks like Microsoft (MSFT), Oracle (ORCL) and Intel (INTC). Read the issue here.
Dick Davis Digests Editor Chloe Lutts wrote about why more stocks are likely to pay dividends in the future and how you can benefit from owning such stocks. Read the issue here.
Cabot Benjamin Graham Value Letter Editor Roy Ward provided step-by-step instructions on how to get your portfolio ready for retirement. This is a must-read for investors at any phase of life. Read the issue here.
Cabot Market Letter Editor Mike Cintolo wrote a timeless piece detailing how to handle winning stocks. In the same issue, he discussed how to improve the three pillars of investing results. Read the issue here.
The most common question we receive at Cabot is “Which Cabot letter is right for me?” I produced a concise guide to answer that question at the end of April. Read the issue here.
I introduced you to the Contrary Opinion Buttons, which now appear here every week and which you can draw inspiration and wisdom from. Read the issue here.
Cabot China & Emerging Markets Report Editor Paul Goodwin wrote about discovering your investing personality, either conservative or aggressive, and how you should invest depending on the answer. Read the issue here.
Mike Cintolo wrote about the importance of doing almost nothing when the stock market turns against you. It’s difficult for many investors to just sit on their hands, but sometimes, less truly is more. Read the issue here.
Roy Ward wrote about the importance of having a game plan and how it’s led to his many investing successes. He follows the value investing system created by Benjamin Graham, which he explains in this issue. Read the issue here.
I related running to investing and discussed seven steps you need to take to become a successful investor. It’s a list that I refer to often and think you should too. Read the issue here.
Cabot Options Trader Rick Pendergraft wrote about suffering from analysis paralysis--when the sheer number of indicators you’re trying to follow completely overwhelms you--and how to avoid it. Read the issue here.
Chloe Lutts wrote about her tried-and-true approach of looking for coiled spring stocks, those with pent-up buying power that will be unleashed once the weight of the market is removed. Read the issue here.
Paul Goodwin wrote about the history of the solar industry and how it’s fared in the stock market. He reminded readers that no matter how good a story is, it’s important to remember that it’s still just a story. Read the issue here.
I wrote about the difference between those investors who believe it’s time, not timing and those investors who believe it’s timing, not time that leads to success in the stock market. Read the issue here.
Chloe Lutts finished the second quarter of 2011 by reminding us of the ever-important maxim: The stock market is not the economy. Learning this will save you a lot of heartache and allow you to make more successful investing decisions. Read the issue here.
That’s all for this week! Tune in next Saturday for more of the year in review.
Here’s this week’s Contrary Opinion Button. Remember, you can always view all of the buttons by clicking here.
Distrust Any Enterprise That Requires New Clothes
The actual quotation, from Henry David Thoreau, is “Beware of all enterprises that require new clothes, and not rather a new wearer of clothes.” Thoreau’s focus was on the person, not the clothes. For investors, the button is a reminder that we humans are fallible, and that success comes from improvement of ourselves, rather than the adoption of new investment vehicles and techniques.
---
In this week’s Stock Market Video Review, Cabot China & Emerging Markets Report Editor Paul Goodwin sees the market’s range of motion tightening up--with swings much narrower than they had been. This is a good sign, says Paul, as continuing tightening could lead to a new rally. But right now, there’s still lots of resistance, so Paul’s advice is to remain heavily in cash until the market direction becomes clearer. He names four stocks that he’s keeping a close eye on: Sohu.com (SOHU), Colfax Corp. (CFX), FMC Technologies and Fortinet (FTNT). Click here to watch the 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 12/5/11 - Pit Bulls and Rottweilers
On Monday, Cabot Publisher and Cabot Stock of the Month Editor Tim Lutts wrote about his experience filling out a K-9 form for his home insurance company. Tim pondered the ceding of more and more freedoms to insurance companies in the name of protection and welcomed your comments on the matter. Tim also recommended a stock that was recently featured in Cabot Top Ten Trader. Featured stock: Ulta Salon (ULTA).
---
Cabot Wealth Advisory 12/6/11 - The Most Hated Company on Earth is Making Investors Rich
On Tuesday, you heard from Paul Tracy, StreetAuthority co-founder and the chief investment strategist of StreetAuthority’s Top 10 Stocks. Paul discussed a stock that’s often reviled but has produced consistent gains in 2011. Featured stock: Phillip Morris International (PM).
---
Cabot Wealth Advisory 12/8/11 - A Top-Performing Stock
On Thursday, Dick Davis Digests Editor Chloe Lutts reviewed the second half of 2011 through several of her Investment of the Week issues in honor of that newsletter’s one-year anniversary. She also recommended a stock that has been one of the market’s best performers in recent months. Featured stock: Dollar Tree (DLTR).
Until next time,
Elyse Andrews
Editor of Cabot Wealth Advisory