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Growth Investor
Helping Investors Build Wealth Since 1970

A Crisis of Confidence

We are all living through historic times, and it seems like every few days we’re witnessing an event that hasn’t been seen in decades, if ever. The market has literally experienced a multi-day crash of late, with the major indexes off 15% to 20% just in the past few days. We’ve always claimed to have a time-tested market timing system, and it’s certainly been put to the test during the past few months, not to mention the past couple of years. Happily, it’s come through with flying colors--we’ve avoided most of the market’s damage in recent months, and nearly all of the debacle since the start of September. This, as most investors and mutual funds have lost 30% to 50% this year. We’re proud of that accomplishment ... but we’re not here to keep you in cash forever. Back in 1987, we were heavily defensive during the market’s crash--but also bought as soon as the new bull market began a few weeks later. We’re looking forward to doing the same this time around, holding cash for now, but eagerly awaiting the go-ahead from our indicators, now that most investors are panicking. In this Cabot Market Letter, we give you our latest thoughts on the market, our latest Watch List, a couple of new stocks to research, and our words about market timing ... and why the middle of October could bring about a turning point. Thanks for reading!