Market volatility has eased a bit this past month, with the Dow Jones Industrial Average gaining almost 1,000 points. The service industry, according to ISM, improved, and the unemployment rate dropped to 7.9% for September.

As you’ll see in our Advisor Sentiment Barometer and Market Views, sentiment remains about the same. It seems investors are awaiting the election results before they make any big moves.



Nonetheless, our contributors have been very busy selecting ideas that look interesting—no matter how the election turns out.

Markets hit pause this week as third-quarter earnings begin rolling in, doubt reigns over chance of another stimulus bill, and uncertainty over the outcome of the presidential election just three weeks out is palpable. Overseas, the Stoxx Europe 600 fell 2.2% as local governments and local authorities hurried to impose lockdown restrictions to halt the spread of Covid-19 cases. This week’s new recommendation is a fintech stock offering an intriguing mix of Southeast Asian, American and European growth. Interestingly, it has a partnership with Sea Limited (SE) and perhaps can best be described as a young “Shopify of mobile”.

Market volatility has eased a bit this past month, with the Dow Jones Industrial Average gaining almost 1,000 points. The service industry, according to ISM, improved, and the unemployment rate dropped to 7.9% for September.

As you’ll see in our Advisor Sentiment Barometer and Market Views, sentiment remains about the same. It seems investors are awaiting the election results before they make any big moves.



Nonetheless, our contributors have been very busy selecting ideas that look interesting—no matter how the election turns out.



We begin this issue with our Spotlight Stock, a specialty chemical company that is growing its global market share. In my Feature article, I explore the catalysts that are driving industry growth, as well as the unique properties that should keep our Spotlight Stock in an industry-leading position.



Moving on, our Growth ideas include companies in the retail, electronics, and e-commerce sectors. In Growth & Income, you’ll find a transportation stock and a restaurant business. Value stocks are still lagging, and remain heavily discounted, and here, we offer two food producers.



We include one Financial stock, operating in the pawn store sector, and in Healthcare, our contributors recommend companies in the medical equipment, therapeutics, diagnostic monitoring, and pharmaceutical sectors.



Technology companies continue to be the market darlings, and this month, we feature ideas from the enterprise software, cloud database, big data, and e-commerce industries. In Energy & Resources, we offer a gas company, a utility, and a gold miner.



Our Low-Priced stocks include a coal producer, biotech, and a maker of CBD products. We offer banking, asset management, food producers, and a refiner in our Preferred & High Yield section. And we also include a Short-Sale candidate from the restaurant/entertainment sector.



Lastly, in Funds & ETFs, our offerings this month focus on biotech, health sciences, and blue chips.



There’s a lot of uncertainty today—with a fiercely fought presidential election, and especially, with the COVID-19 pandemic. Fortunately, the markets seem to be holding up well, and I think they’ll continue to do so post-election results. In the meantime, it is my hope that you and your families stay healthy.



As always, please don’t hesitate to email me with your feedback and questions. My address is nancy@cabotwealth.com.



The next Wall Street’s Best Investments issue will be published on November 19, 2020.

Today, we are being a little contrarian and recommending an investment in a company that operates in a down and out industry. Nonetheless, we believe there is significant upside over the next couple of years.

This company’s characteristics include:

• High margins
• No capex requirements
• An 8% dividend yield
• A cheap valuation

All the details are inside this month’s Issue. Enjoy!

These are uncertain times with the election coming up and Covid still hanging around. But instead of trying to navigate the unpredictable twists and turns in the near term, let’s focus on things that are sure to last beyond the current headlines. This is a great time to focus on issues that will drive business and the markets long beyond 2020 while no one else is looking and bargains can be had.

One issue that is certain to remain is the aging of the population. The U.S. and global populations are older now than ever before and getting older still at a break-neck pace. The trend is even more pronounced in other parts of the world.



Regardless of who is elected president, the population will get older. No matter what course the virus takes, the population will continue to age. You can take that to the bank. In this issue, I identify two of the very best health care companies in the world that are perfectly positioned to benefit from the aging trend.

The stay-at-home paradigm has revolutionized the workforce, accelerating demands on the cloud and in telecommunications – including the rollout of next generation 5G wireless networks.

The bull market is alive and well, as the intermediate-term negative signal I mentioned in recent weeks has been erased by a new positive signal. Happily, we sold very few stocks during the correction (most of ours behaved very well) so today’s recommendation means the portfolio is once again full.

And what is today’s recommendation? A major provider of global infrastructure services whose stock has low risk at this point and good potential for profit as the world slowly gets back to business.

Current Market Outlook


Three weeks ago, the major indexes were on their knees and very few stocks were in good shape. But there’s been a steady improvement in the overall evidence since then, and while it’s not 1999 out there, the picture looks pretty good—the intermediate-term trend has returned to the bullish side of the fence, while many individual stocks (growth and otherwise) show constructive action. We’ve even seen a big pickup in the number of names hitting new highs (multi-month high in NYSE new highs on Friday)! Short-term, the steady up-move in the market and many stocks could easily bring a pullback or some hesitation, but there’s no question the rubber-meets-the-road evidence has improved greatly, which is what counts most to us. We’re nudging our Market Monitor up to a level 7 in today’s issue.

This week’s list has a bunch of good-looking charts from a variety of sectors. Our Top Pick is Marvell Technology (MRVL), which is helping to lead the recent charge in chip stocks.

Stock Name	Price	Buy Range	Loss Limit
Abercrombie & Fitch (ANF)	16.55	15.5-16.5	14-14.5
Fastly (FSLY)	126.61	118-129	105-108
Marvell Technology Group (MRVL)	43.51	42-45	38-39
Paylocity (PCTY)	188.72	178-188	160-164
Penn National Gaming (PENN)	64.89	62-66	56-58
Roku, Inc. (ROKU)	221.62	215-222	194-198
Synnex Corp. (SNX)	150.56	145-152	131-135
Tesla, Inc. (TSLA)	441.83	435-448	392-400
TG Therapeutics, Inc. (TGTX)	30.49	29-31	26-27
United Rentals, Inc. (URI)	198.89	194-202	175-178

It’s not a blastoff-type of environment, but the evidence has steadily improved during the past three weeks, first due to the action of leading growth stocks, and now, our Cabot Tides have returned to bullish territory. Thus, we continue to follow the evidence, slowly putting money to work and rotating into stronger situations. Last week, we averaged up in two of our recent buys, and tonight, we’re adding a full position in a fresh leader.

Elsewhere in tonight’s issue, we write about the ups and downs of recent IPOs, as well as one sector that is beginning to reemerge and has many stocks that fit our stock picking criteria.

I include summaries for 11 Cabot Benjamin Graham Value Investor companies that reported quarterly financial results or other noteworthy news during the past two weeks. I also include questions from subscribers along with my answers.

Remain mostly bullish, but hold a little cash to respect the market’s growing divergences. Our market timing indicators are still mixed, though the long-term trend and growth stocks remain in good shape.

There’s something unusual and significant afoot in the bond market so I’m going to pluck my Goldman Sachs update out of the Growth Portfolio updates, and put it right here in the intro so that nobody misses what’s going to be happening soon.

The S&P 600 Small Cap Index bounced off rock-solid support at the 820 level late last week, and over the last few sessions has migrated back to its 50-day moving average line at around 837.

The Emerging Markets Timer is doing just fine, as the iShares EM Fund has rebounded from its May 17–18 dip.

The S&P declined 1.8% last Wednesday, its worst drop since September. We’ve seen a decent rebound in most of our stocks since, but the market needs to behave for the next couple of weeks to keep the bullish case intact. Long-term, the market’s trend remains up.

Updates on all our stocks, no ratings changes, and 10 stocks that look likely to rise 5% in the near term.

The year’s first major bout of market volatility hit this week. It’s about time. I’m moving two of our stocks to Hold.

This Weekly Update includes summaries for three Cabot Benjamin Graham Value Investor companies that reported quarterly financial results or other noteworthy news during the past week, plus questions from subscribers along with my answers.

Trim your sails a bit and see how the market handles itself going forward. Today’s whopping decline isn’t the end of the world for growth stocks, but the broad market is more worrisome, with the Cabot Tides now neutral and our Two-Second Indicator turning negative.

The major indexes pulled back late last week, then rallied Monday after Saudi Arabia and Russia said they would extend oil production cuts. Crude prices surged to their highest level in two weeks, and energy stocks led the market higher. Things cooled off again on Tuesday, as housing starts disappointed and the U.S. dollar fell to its lowest level since before the election.

It’s no secret that I’ve favored energy, financial and construction materials stocks for many months. That’s because many stocks in those sectors are expected to achieve very strong, multi-year profit growth.

Two of our portfolio stocks reported Q4 2018 results.

Two stocks reported fourth-quarter results; plus price action on two more.

This cybersecurity company is expected to grow by 53.2% this year.

In the past 30 days, nine analysts have raised their EPS estimates for this DNA sequencing company.

This medical device company beat analysts’ EPS estimates by $0.09 last quarter, and the shares were recently initiated at Deutsche Bank with a ‘Buy’ rating.

Two stocks have rating changes today.

Seven analysts have increased their EPS estimates for this financial stock in the past 30 days.

Trends remain good for investors in the marijuana industry.

One of our portfolio stocks reported Q4 2018 results the other night that were better than expected.

One stock reports strong fourth quarter and moves from Strong Buy to Hold; a second falls on temporary problems.

This digital entertainment and e-commerce company is expected to grow at double-digit rates this quarter, boosting its shares’ momentum.

The shares of this payment company were recently initiated by Jefferies with a ‘Buy’ rating and were upgraded by UBS to ‘Buy’

A few Cabot Options Trader subscribers have asked me about ways to protect gains in their portfolios, so I thought I would write to everyone with a couple of strategies using options to hedge your portfolio.

A subscriber recently asked me if I keep a journal of my trades. Many traders keep journals so they can look back at their trades and evaluate what they did right and what they did wrong.

Want to know how the big institutional investors use options? Here is an example of how one trader spent $132 million on three technology stocks.

Options trading has its own vernacular. To know how to do it, you need to know what every options term means. Here are some of the basics.

Our Cabot Momentum 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 Momentum Trader features.