Search

Small caps shot higher last Friday after Fed Chair Jerome Powell indicated his willingness to consider a September rate cut.

On Friday, the S&P 600 SmallCap Index jumped by 3.8%, blasting through the 1,400 level that has served as intermittent overhead resistance in July and August. The index also broke through the 1,424 level, which the index jumped to following the weak jobs report a couple weeks ago.

Tyler Laundon, chief analyst of newsletters Cabot Early Opportunities and Cabot Small-Cap Confidential, shares information on technology stocks that he likes today.

Stocks continue to hold the line, even as the dual tidal waves of America’s involvement in the Iran-Israel conflict and the fast-approaching tariff deadlines threaten to submerge everything. Until that happens, though, we should invest in the market in front of us, not the one we think could materialize. And so today, that means going back to the growth well and adding a medium-sized software offering from Cabot Early Opportunities Chief Analyst Tyler Laundon to the portfolio.

Details inside.

Chaos was the overriding theme of the first half of 2025. But for all the pearl-clutching over tariffs, Middle East conflict, slowing economic growth and still-high interest rates, the S&P 500 was up 5% and has risen to new all-time highs. Stocks have truly climbed the proverbial “Wall of Worry.” Will they continue to? I wouldn’t bet against it. So today, we add a once-great large-cap tech stock name that may finally be ready to dig out of a years-long funk. Clif Droke identified it as a prime turnaround candidate in his Cabot Turnaround Letter. Now, we add it to the Stock of the Week portfolio.

Details inside.

The market’s divergent behavior continues, with small growth stocks in particular suffering, but there are still attractive investments, and for investors looking for something in the electric vehicle sector, today’s recommendation is one of them.

As for the current portfolio, I have two sell recommendations, both small, lightly traded stocks that are losing support.



Details inside.

The vast majority of our work is based on the trends of the major indexes and the action of leading stocks, and on those two fronts, things look very good; we’ve even seen the broad market perk up after a tough stretch, too, which helps the cause. About the only thing to worry about here is that ... there’s not much to worry about, and that many leading stocks are showing some near-term exhaustion patterns. Big picture, we’re moving our Market Monitor back to a level 8, but you should still keep your feet on the ground, looking for decent entry points in strong stocks.

This week’s list has a lot of stocks that not only have excellent overall charts but have either consolidated calmly for the past few weeks—or have shown outstanding buying volume in recent days. Our Top Pick is one of the latter, gapping up to new highs last week on earnings.

The market finished solidly in the black thanks to a strong end to last week; interestingly, while the intermediate-term trend is still neutral overall, a couple of broad up days from here could kick it into the green. Even better is the action of leading stocks, with more names emerging and, importantly, more names holding their recent upmoves. To be clear, there’s still a lot of proving to do, but overall, we think the evidence has taken another step in the right direction—we’ll move up our Market Monitor to a level 6 and see what comes from here.

This week’s list has a ton of strong names and other good setups that could lift should the market continue to improve. Our Top Pick looks like the leader of the improving cybersecurity group, having lifted out of a long consolidation. Dips should be buyable.

Here are two companies that fit my screening criteria for undervalued stocks with low volatility.

In football, too many scouts focus on how a prospect looked in the workout room or running drills in a T-shirt and shorts.

Today I want explain the product we introduced 10 days ago called Cabot ETF Investing System.

Today, I’m writing on a MacBook Pro. This morning I did my morning crossword puzzle on my iPad. All day long, my iPhone is by my side. My home Wi-Fi comes from Apple AirPorts. And some nights, I stream entertainment through my Apple TV. In short, I love Apple products, and I expect to continue using them for many more years. But one of the most important market truisms is this: “The company is not the stock.”

Holding cash is not a successful long-term investment strategy, especially where inflation reduces the value of cash.

Tax-free bond funds yield peanuts these days, so if you’re trying to actually grow your money, there’s only one sensible course.

Shifting into academic/environment/energy mode, I recently read an article in The New York Times that claimed we’d save more fuel as a country if we stopped measuring miles-per-gallon and began measuring gallons per 10,000 miles. On the surface, it doesn’t seem to make sense, and I assume that’s because we’ve been brainwashed (conditioned) into thinking m.p.g. is the gold standard. So I opened up a spreadsheet and tried some scenarios, and here’s what I found. It’s absolutely true.

I rarely ever delve into the murky, stinky waters of politics, and really, I’m not going to start now. If you’ve listened to the news, you probably know about the good and bad of the $800 billion (and growing) stimulus package that will soon be taken up in the Senate. I’m actually optimistic that the Senate will be able to pass a workable, bi-partisan bill. However, my rant today is based on policies that have been adopted by Democrats, Republicans and Independents alike. I’m talking about the various tax credits currently in the tax code, and the income thresholds that apply to them. Some aspects of the current stimulus bill include these thresholds.

In preparation for today’s Cabot Wealth Advisory, I went back and read our in-house recap of a recent survey we sent you. While it was expressed a few different ways, the most common response was some form of “Help me make money by helping me know when to buy, sell, be in and out of the market ... " and so on. Today I want to give you 10 nuggets to put in your investing toolkit.

The weather has finally turned nice here in New England, with a consistent string of 60-degree days and a couple of scorchers thrown in (we set records on Tuesday, with temperatures north of 90 degrees!). That means it’s nearly vacation time! And with vacation comes reading; I’m always on the lookout for good books, investment or otherwise, to help me unwind while I watch waves lap against the sand. Since this is a wealth advisory, of course, I’ll offer up some of my favorite investment-related book recommendations. Heck, I might even re-read one or two of these this summer. Here are some favorites …