Search

Tim Lutts fully expects the stock market to hit new highs in January.

President Obama is calling for 80% of U.S. energy to come from “clean” sources by 2035, which will boost Green stocks.

I spent most of last weekend planning an upcoming trip to Europe (Prague, Munich and Amsterdam). I reserved a rental car, found a couple places to stay... and looked into getting a new credit card. I already have credit and debit cards that don’t charge foreign transaction fees, which is important...

The company is not the stock. I love Apple the company. But I don’t love AAPL (the stock) today.

Here are updates on five companies I’ve recommended in Investment of the Week since October: Carnival, CBS Corp., E*Trade Financial, FedEx, Legg Mason and Universal Electronics.

Trends are up, but overextended, suggesting that a normal correction is likely. Our Hi-Lo Alert, which measures the number of Dow stocks above their medium-term moving averages, is at its highest point since May, just two weeks before the market got very rocky and embarked on the course that took it down to the August low.

Even though stocks have been wobbly today the last week has been very constructive for our portfolio. As of mid-day today, our portfolio is up an average of 4% from last Thursday’s close, and only two positions are down (neither by more than 2%).

Continue to lean bullish. The market’s rebound today after yesterday’s Italy-induced selloff was very encouraging, and both of our trend-following indicators remain bullish.

Raise some cash. Our Cabot Tides are now on the fence, and more important, individual stocks have been hammered during the past week, with a few showing abnormal action. In the Model Portfolio, we’ve sold a few positions lately, leaving us with around 40% in cash.

With the market bouncing around in the first two weeks of the year on more speculation about Fed rate cut magnitude/cadence (economists are now thinking slower and fewer of them) and mounting geopolitical risks, small caps as an asset class have begun to trail the broader market.

That said, on a stock-specific basis there’s been a lot of positive motion in small caps in the MedTech and software space, which is where we concentrate.

If you’ve ever been tempted by the stories and claims about day trading – don’t be. Here’s why day trading isn’t something that we recommend at Cabot.

This week’s update includes commentary on earnings from Conduent (CNDT), ESAB (ESAB), Gannett (GCI), Goodyear Tire & Rubber (GT), Holcim (HCMLY), Ironwood Pharmaceuticals (IRWD), Kaman (KAMN), Molson Coors (TAP), Organon (OGN), Volkswagen (VWAGY), Warner Bros Discovery (WBD) and Western Union (WU).

Seatmaker Adient (ADNT) reported this morning with encouraging results – we’ll include more detailed commentary next week.

Next week, TreeHouse Foods (THS), Viatris (VTRS), Elanco Animal Health (ELAN), ZimVie (ZIMV), Brookfield Re (BAMR) and Toshiba (TOSYY) report earnings.

Higher education is more important than ever. The unemployment rate for college graduates, currently 4.6%, is less than half that of high school grads (at 11%). And workers with a college degree earn, on average, almost twice as much as those with only a high school diploma. Unfortunately, the advantages conferred...

Teaching your children basic financial literacy pays serious dividends throughout their lives. It helps them avoid debt, practice responsible budgeting and can even help them pay for college and retirement. In this month’s issue, we’ll explore the best ages to teach your children important financial skills, the best apps and tools for learning about money, and even the best games to make financial learning less of a chore.

The broad market remains in an uptrend, according to our intermediate-term market timing indicator, but our longer-term timing indicator, while improving, remains in a negative state. Thus, it remains possible that a major pullback is right around the corner—and if one comes, it will be handy to have cash at the bottom. So I’m still working to avoid being fully invested, though it’s getting tough because our stocks acting so well.
For today’s selection, I’m going with a small company that’s taken a proven path to growth—consolidating a fractured industry. The stock was originally recommended by Tyler Laundon in Cabot Early Opportunities and here are Tyler’s latest thoughts.

This week I’m pleased to bring you something very special: an interview with Dick Davis Digest founder Dick Davis. Prior to founding the Digest, Dick Davis worked at Merrill Lynch, where he began a prolific career as a stock market commentator for radio, television and newspaper. His daily TV market report...

Defense contractors have been beaten down for years, but several of them now look like good turnaround stocks. These six appear intriguing.