The world has clearly changed in the past two weeks. We see an exceptionally wide range of possible outcomes, which makes predictions about the future (already a low success rate endeavor) basically futile. We offer our timeless investing advice that can be readily applied in such situations.

In the letter, we also provide updates on all of our Recommended Stocks.

The iconic phrase above was uttered by James Cagney in the movie White Heat just before his character blew up in a spectacular explosion. The metaphor is a timely one for the broad metals market as prices across the board are skyrocketing to heights not seen in years, or even decades!

But streaking metals prices can quickly reverse based on a dramatic shift in the prevailing geopolitical narrative. For that reason, I recommend tightening up stop-losses and proceeding with caution rather than getting carried away with excessive optimism.



In the portfolio, we just added a new position in a dual steel and aluminum play that looks set to pop.

For the past several weeks, we have bought oils and commodity stocks. Today, I’m going to diversify our portfolio a bit, adding American semiconductor supplier, Onsemi (ON).

The situation with Russia’s invasion of Ukraine has added a fresh bout of volatility to the markets.

But U.S. markets, as tracked by the SPDR S&P 500 ETF Trust (SPY), have not plunged far. The SPY fell to an intraday low of 410.64 on February 24 before rallying to finish the session with a gain.



The truth is: Stocks were already toying with a correction prior to the Ukrainian situation heating up.

With the market under pressure because of the war in Ukraine (not to mention lurking inflationary influences), defense continues to be important.
Today the portfolio is selling two stocks and downgrading two to hold.


But there’s always something to buy, and today it’s energy stocks, as I add our third energy stock to the portfolio.


Details inside.

The story remains mostly the same: When it comes to rubber-meets-the-road evidence, nothing has changed—the intermediate-term trend of the major indexes remains down, and growth funds and individual stocks are in the same boat. Until some of that changes, it’s telling you the bulls are swimming upstream, so it’s best to be defensive. However, we also don’t want to ignore many secondary measures that are showing some encouraging action, including the indexes holding above their recent lows and increasingly negative sentiment. The pieces are in place for some sort of turnaround, but we’ll have to see it happen before taking action.


This week’s list is again heavy in commodity-type names, though a few other areas popped up as well. For our Top Pick, we’re going with a growth-y name that’s holding well—it’s probably the best-looking non-commodity stock in the market today.

With so much going on in the world the trends are a bit messy. That said, I have noticed an uptick in several of the small-cap MedTech players on my watch list.

These businesses could be poised for a nice recovery in 2022 and 2023 as COVID-19 recedes. And the one that tops my list is posting massive growth as its revolutionary treatment for BPH has just gained full Medicare backing and is rolling out into U.S. hospitals.



With revenue set to grow by multiples in the coming years and the stock trading at an apparent steep discount to peers, we’ll jump in now.



Enjoy!

Despite a Ukraine conflict that’s roiled markets, Explorer stocks had a good week. And while Sea (SE) reported a mixed and disappointing quarter, Ford (F) made a big announcement as it moves into a new era.

Markets had held up pretty well—weathering inflation and interest rate worries—until the last week of February, when Russia’s Putin decided to invade Ukraine. That radical move sent the markets roiling with some pretty hefty drops and increased volatility. But action today was impressive, with the Dow Jones Industrial Average up almost 600 points, the S&P 500 up 80, and the Nasdaq up 219.

Fossil fuel energy market turmoil sparked by Russia has spurred buyers into Greentech, giving our sector its best stance in three months. This issue, we feature two stocks. One is a play on re-shoring, scarcity and even national defense in addition to the boom in renewable energy. The other is a nearly guaranteed way to preserve capital with private-equity-like upside.

Also in this issue, we detail our current portfolio recommendations, the state of Greentech and offer up a fresh ESG Three stocks to consider.

Today, I’m adding Barrick Gold (GOLD). The company engages in the exploration, mine development, production, and sale of gold and copper properties

Welcome to the roller coaster marketplace! As if COVID, rising inflation, and increasing interest rates weren’t enough to spook the markets, Putin’s invasion of Ukraine finished the job. It’s been a rollicking ride, but yesterday’s recovery and today’s momentum up are great signals.

Face it, many sectors have been beaten down since the first of the year, but today, they are all in recovery mode.



Across the board, the economy continues to strengthen, and consumer confidence is holding up well. Retail sales and housing prices continue to climb; housing starts and building permits are strong; and unemployment is healthy.



That means that earnings should continue to rise, and generally, that means that stocks will also.



To take advantage of the bull market in energy, this month, I’m adding an energy company that doesn’t actually produce energy. It’s a royalty and mineral company, making money from leasing its acreage out to producers.



I look forward to hearing from you, so please keep your emails coming.



Happy Investing!

The market’s evidence has worsened some this week—our Cabot Tides are now on the fence as the broad market has softened.

Under normal market conditions growth investors like to get pulled into strong stocks and buy them as they head higher. This is anything but a normal market, however!

The stock market continues to exhibit a willingness to rise in the near term. I’m seeing constructive price chart patterns on both the S&P 500 index and on many individual stocks.

The S&P 500 paused its recovery over the past week, moving sideways over the past five days. Here is my take on the market.

The S&P 500 has now regained more than half of what it lost in the bear market selloff. We are still in the midst of a six-week rally, although it has leveled off in the past few weeks. What can you expect going forward?

The overall market continues to look good, though this week we’ve seen most growth stocks take hits as money has flowed into the broad market.

The market continues to remain strong in the face of economic data that’s anything but. As we’ve already discussed at great length, this is because the market is forward looking and there’s been enough potential positive news around treatments and the timeline to a vaccine that the path of least resistance has been higher.

This small bank has an enviable track record of profits.

This fund gives you exposure to some market-beating Asian stocks.

In today’s Issue of Cabot Early Opportunities I mistakenly left off two stocks in our portfolio.

Our second idea is some nice profit-taking.

Our first recommendation today is a building product supplier that recently reported quarterly results that beat estimates for both revenues and earnings.

This entertainment Real Estate Investment Trust just increased its dividend by 3 ½ cents, to $1.19 per share annually.

On Friday this recommendation closed at 14.74, which was below the August 15 strike that we had sold last month. Because the stock closed below 15 the calls that we sold for $1.65 expired worthless. This is a good situation.

This global drug company is working on a COVID-19 vaccine, and in recent news, reported that it has obtained the rights to sell lymphoma drug Tyvyt everywhere outside of China.

Tyler is selling a stock from the portfolio.

This preferred stock is backed by a global insurance company.

The spectacular results from the Cabot Profit Booster portfolio continued in August as we will likely close four positions tomorrow for yields as high as 17%.

Today we are recommending buying and selling insurance stocks.

Our Cabot Top Ten Trader’s market timing system consists of two parts—one based on the action of three select, growth-oriented market indexes, and the other based on the action of the fast-moving stocks Cabot Top Ten features.