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CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Tyler Laundon reflects on equity performance in the first quarter, which ends Monday, and the impact of continued uncertainty stemming from Trump’s tariffs. He breaks down some of the projections after the auto tariffs were announced yesterday then touches on the latest inflation expectation data, which is responsible for Friday’s market retreat. Tyler flags typically conservate stocks, like dividend payers, utilities and insurance stocks, as holding up. But concedes that it’s been very challenging in the growth stock realm. He highlights a few names that are bucking the trend, as well as a number of gold stocks, but concludes that its still time to remain defensive, at least through the end of Q1 and Trump’s next tariff announcement.
Stocks Discussed: AXZGN, GDXJ, AGI, RGLD, PPTA, FNV, WPM, PRMB
Cabot Street Check (Podcast)
This week on Street Check, Larry Cheung joins for an extended conversation about investing in Chinese stocks. We discuss his recent experience in Hong Kong, the importance of catching early momentum in Chinese stocks and indexes, the evolution of China’s stance on AI, and the individual stocks he likes best right now (and how to trade them). To learn more about the offer mentioned on this episode, visit cabotwealth.com/street. For more of Larry’s insights, follow him on YouTube, Substack and social media @larrycheungcfa.
Cabot Summit: Investing Masterminds 2025
Join us in Salem, Massachusetts, this summer from August 13-15 for our Investing Masterminds Conference and unlock powerful market strategies, top stock picks, and expert analysis. Engage with the Cabot Wealth analysts and connect with other investors to share insights and strategies. Click here to Register.
Cabot Webinar
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts is now available for you to listen to at your convenience—click here for access. This private call with our analysts is one of your exclusive Cabot Prime Core member benefits.
RECENT BUY AND SELL ACTIVITY
This table lists stocks bought or sold in the most recent Issues or Updates.
PORTFOLIO UPDATES THIS WEEK
Cabot Growth Investor
Bi-weekly Issue April 3: The market’s brief rally ran into a wall last week, and while the major indexes found some support near their March lows initially, today’s tariff-induced plunge put an end to that. While the headlines and news items are hitting the wires fast and furious, we urge you to stay focused on the evidence--doing so is why we were nearly 60% in cash the day after the market’s February top and why we’ve been north of 80% cash in recent weeks, shielding the portfolio from the worst of the decline. Tonight, we are forced to sell one of our remaining small positions, which will boost our cash hoard to the upper-80% range.
For now, we’re comfortable remaining in our storm cellar, but while the news and action is awful now, there are some rays of light out there (like falling Treasury rates), as well as many stocks that are etching higher lows right now while the market does the opposite (see more in tonight’s issue). Eventually, this down period will give way to a great money-making opportunity, so keep your head up--but stay defensive for now.
Bi-weekly Update March 27: WHAT TO DO NOW: Remain defensive. The market has gotten off its duff somewhat this week, but as seen the past couple of weeks, there’s still plenty of selling and news-driven action out there. We do think it’s possible a repair process has begun, but right now, the trends of the major indexes and most stocks are pointed down, so we continue to advise a defensive stance. We’ll again stand pat tonight with our four small-ish positions and our big cash position, though we’ll be on the horn if we have any changes (including possibly re-jiggering the portfolio a bit) in the days ahead.
Cabot Top Ten Trader
Weekly Issue March 31: The market had what amounted to a halfway decent eight-day rally, but the sellers pounced on that move, with most major indexes testing or reaching new correction lows today. From here, we’ll be watching to see how this short-term retest phase goes—given the very negative sentiment and obvious reason for the selling (tariffs), a super-powerful rally from here would be intriguing, especially if some resilient stocks (those that are holding well above their lows from a couple weeks ago) take flight. Over time, this decline will set the stage for a buoyant advance with lots of new leadership, but until that payoff arrives, continue to practice patience. As always, though, we just go with the here and now; we’ll yank our Market Monitor back down a notch to a level 3.
This week’s list is again very well rounded, though not surprisingly, there’s fewer go-go growth names, as more well-situated outfits are favored. Our Top Pick has both growth and defensive characteristics, and the stock is holding up very well.
Movers & Shakers April 4: It’s obviously been an eventful week, starting off with some mini-panic on Monday, though the market did find support three days in a row. But Wednesday evening’s tariff announcement has sent the market into a tailspin, with huge losses yesterday and, after China’s retaliation moves announced this morning, further big losses today. We have thoughts, so let’s run through them.
Cabot Value Investor
Monthly Issue April 3: U.S. stocks remain paralyzed by tariff fears, but not energy stocks. They’re the best-performing S&P 500 sector by far this year, more than doubling the return of any other sector. And yet, they remain the most undervalued sector by virtually every measure. So this month, we add a large-cap energy stock to the Cabot Value Investor portfolio that has a yearslong history of not only outperforming the market, but blowing it out of the water. But after a slow start to the year, it’s trading at a rare discount. We think it has immediate upside – and a high dividend yield should hold us over until it gets there.
Details inside.
Weekly Update March 27: The last two months have felt historically volatile.
Since Donald Trump took office for a second time and immediately started handing out tariffs like they were surprise take-home prizes at an Oprah taping (“YOU get a tariff, and YOU get a tariff!”), the market has been unsettled. And indeed, from mid-February through mid-March, things weren’t simply unsettled – they were bad. Both the S&P 500 and the Nasdaq entered correction territory – the fifth-fastest correction in the last 75 years, in the case of the S&P. Fears of higher inflation and possibly recession have come rushing back to the surface, consumer confidence is at a 12-year low, and interest rate angst is back in full force.
And yet, actual volatility – as measured by the VIX, a.k.a. the “investor fear gauge” – has been … fairly muted?
Cabot Dividend Investor
Monthly Issue March 12: This is the worst market we’ve seen in a while. And the ugliness could last a while.
Tariff talk is all the rage. The economy is slowing. Nobody is sure about inflation or interest rates. It all adds uncertainty. The market had been riding high for more than two years. A comeuppance has arrived. How long will it last and how deep will it be?
During times of maximum uncertainty like this, healthcare stocks are a great place to be. That was the topic of last month’s exquisitely crafted issue. But there is another industry with both defensive and growth characteristics that’s ideal for uncertain times – garbage.
We live in the garbage capital of the world. This country generated 292 million tons of waste in 2018, up from 251 tons in 2012, and nearly double the waste produced in 1980. That’s enough waste to produce a pile long enough to go to the moon and back – 29 times. And that’s every single year. Waste services are big business. In 2023, the U.S. waste management services industry generated $145 billion in revenue. That was up from $137 billion the prior year and that number is likely to keep rising.
Garbage will continue to pile up regardless of where interest rates go, the level of economic growth, or the fallout from tariffs. The market could soar, or the world could go to Hell in a handbag. Either way my wife will nag me every week to take out the garbage.
Bank on a company with certain earnings and revenue in uncertain times. Defensive stocks tend to outperform during and after volatile markets. In this issue, I highlight a company that is the unquestioned leader in waste services. The stock has a strong track record which could get even better in the years ahead.
Weekly Update April 2: It started off as an ugly week for the market. But things have gotten better. Stocks flirted with the recent low on Monday but held strong and recovered. That’s a good sign. But is it enough?
Big tariff news is on the doorstep. Uncertainty abounds. It is unclear yet how many countries will be included in the reciprocal tariffs scheduled to take effect today and to what extent there will be exceptions. The market may be happier about things by the end of the week. But if it isn’t, stocks might go lower again.
Cabot Early Opportunities
Monthly Issue March 26: The first quarter of 2025 has been interesting, to say the least. We wrap it up with the March Issue featuring names across the software, security, coffee chain, specialty metals and sports betting markets.
A few familiar faces, and a few new ones, should mean something for everybody. Details inside.
Cabot Income Advisor
Monthly Issue March 25: After falling into correction territory earlier this month, the S&P 500 came off the bottom and has been trending higher. Is that the end of the selling? I don’t think the market has decided yet.
Some tariff clarity could arrive soon. Stocks rallied strongly to start the week partially on news that pending tariffs will be more “targeted.” Technology stocks also rallied on the perception of higher-than-expected AI demand. But the market is very headline sensitive. And the headlines are likely to keep on coming.
If I had to bet, I would say the market probably made the bottom for now and is more likely to trend higher. But I don’t have a high degree of confidence right now. A couple of negative headlines could send stocks plunging to new lows.
There are some select stocks that are actually near the 52-week high. I’m more comfortable selling a covered call on a stock with recent strong performance than initiating a new stock position at this point. In this issue, I highlight a covered call for the biopharmaceutical company AbbVie Inc. (ABBV).
Weekly Update April 1: It’s ugly again. The market recovered from the 10% correction bottom earlier this month. But it plunged again below the earlier low on Monday as tariff issues have taken center stage.
Hopefully, stocks will bounce off the low again, but it isn’t looking good right now. The tariff deadline is this week, and uncertainties abound. It is yet unclear how many countries will be included in the reciprocal tariffs and to what extent there will be exceptions. The market may be happier about things by the end of the week. But if it isn’t, stocks will likely go lower.
Cabot Turnaround Letter
Monthly Issue March 26: In uncertain times like these, it’s only natural that defensive-minded investors are gravitating to healthcare stocks. After all, this space is characterized by consistent demand for essential products and services that millions rely on, regardless of the state of the economy. (Additionally, many of the companies in this category offer dividends that can be considered quite attractive during market sell-offs.)
While the sector itself has only lately returned to favor, a number of consumer-facing healthcare companies remain out of Wall Street’s good graces and under the public’s radar—including some which provide critical staple products for the everyday needs of consumers.
One of those companies is today’s turnaround recommendation.
Weekly Update April 4: In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Agnico Eagle Mines (AEM), Alcoa (AA), Atlassian (TEAM), Centuri Holdings (CTRI), SLB Ltd. (SLB) and Starbucks (SBUX).
Gold miner Agnico Eagle Mines (AEM) is well positioned in the ongoing tariff war to benefit from increasing safe-haven gold demand.
Cabot Money Club
Monthly Magazine April: Buffett, Graham, Icahn, Templeton ... these are just a handful of seven legendary investors that have helped define what investing success means for generations. In this month’s issue, we’ll investigate the strategies that made these investors titans of the industry, what they have in common, and how you can adopt those strategies to achieve greater profits in your own portfolio.
Stock of the Month March 13: I don’t know about you, but these market swings are definitely making me dizzy! Tariffs, inflation, the reemergence of recession fears—are all serving to rattle investors.
This morning’s inflation report, however, did push us into somewhat positive territory, with February’s CPI rising 0.2% (2.8%, annually), a bit less than the 0.3% forecast and considerably better than the 0.5% rise in January.
Also, on the good news front, mortgage rates have finally begun to decline, with the average 30-year interest rate now at 6.72%.
ASK THE EXPERTS
Prime Question for Mike: Hi, I was reading a newsletter that states the Dow Theory turned bearish on March 14. Put any credence in that indicator? Thanks
Mike: (The Dow Theory is) not part of our system – but our Cabot Trend Lines (long-term trend) turned negative a couple of weeks ago, so it sounds like it coincided with that. Doesn’t predict anything, but reaffirms a defensive posture makes sense for now.