The gathering at our Cabot Wealth Summit last month was lively, accompanied by markets exhibiting some pretty intense volatility. That was primarily due to the Chinese tariff issue, but with little net change. Our subscribers—as well as individual investors—continue to be bullish. The economy remains strong, but Fed watchers are calling for another 25 basis points rate cut at the September 17-18 meeting, due to the global outlook as a result of the U.S./China trade war.
And yet, the fundamentals look sound, and as you’ll see in our Market Views section, our contributors continue to be positive in their outlook.
Wall Street’s Best Dividend Stocks 324
One Stock at a Time
The major indexes are tilted to the upside to start the week. However, under the surface, we’re continuing to see increasing selling pressure on most growth stocks, including a bunch of names from leading areas like software and cybersecurity. While the overall market has shown some positive signs, it remains vital to take things on a stock-by-stock basis, both on the buy side (looking for early-stage opportunities that have recently shown great buying power) and the sell side (honoring stops and loss limits).
Michael Cintolo, Cabot Growth Investor, www.cabotwealth.com, 978-745-5532, September 9, 2019
Looking for a Rate Drop
The Fed will likely cut rates once again at its meeting next week. The Wall Street Journal recently said CME Group had investors placing a 90% probability for a 25-basis-point cut at the coming meeting and a 10% probability for a 50-basis-point cut.
It appears that sentiment within the Fed for a more aggressive push for stimulating the economy using monetary policy may not be uniform across the institution’s leadership. Fed officials may need to see further evidence the U.S. economy is in need of stronger monetary policy stimulus before offering it.
Ron Rowland, All Star Investor, www.AllStarInvestor.com, 800-299-4223, September 9, 2019
New Highs on Top
Last week, the market moved up strongly out of its reversal pattern. The Dow looks like it’s going to make a new historic high in the next couple of weeks, barring any bad news from Trump and his China adventure. Our normal buying strategy is to BUY 40% of your position in a particular stock NOW, and buy 30% more on each 20% decline from your original buy price.
Joseph Cotton, Cotton’s Technically Speaking, www.cottonstocks.net, 727-289-4436, September 9, 2019
To read the rest of this month’s issue, download the PDF.