Search

The market’s snapback has been impressive, pushing our Cabot Tides back to a green light and pulling most stocks up after short, sharp pullbacks.

This week we had two companies reporting earnings, one reports next week, and the earnings deluge starts the following week with at least seven companies reporting.

When the technology bubble burst in 2000, many investors held onto their stocks even as they plummeted, believing in the mantra of time, not timing. In the end, it’s market timing indicators and having sell disciplines in place that count.

Clorox introduces Green products, endorsed by the Sierra Club no less. “Green collar” jobs are replacing some blue collar ones that have gone overseas. And a home in Colorado puts Green housing on the map. These are just some of the ways the Green revolution is manifesting itself in our lives.

As I’ve written in recent weeks, there are ample signs that the market’s bear phase is close to (or has already reached) its end point. I won’t rehash all the signs here (double-bottom in the indexes, new lows divergence, Bear Stearns bad news, etc.). Instead, I want to take a few paragraphs to dispel a common belief among most investors-that you must get in as quickly as possible to make big money in a bull market.

I love to read, so I was very excited when e-readers first came on the market. But since then, I’ve discovered several things about them that have stopped me from buying one. However, I have a solution that may make them more appealing.

Google, with its mantra “Don’t Be Evil,” has never been totally comfortable in China, which employs an army of censors and spends monumental amounts of money to control Internet content.

Earlier this month, Lowe’s began selling do-it-yourself solar panels kits. The second I heard of them, I considered the possibility of shifting solar to a springtime project.

Eventually, when real estate prices fall low enough, the patient value-oriented souls who’ve been waiting for bargains will come out of the woodwork and start buying. They’ll buy individual houses, apartment buildings, entire condominium projects and more. Downtrends will end. The recession will end. And the U.S. of A. will return to its pattern of slow growth. But should you wait until then before you invest? No, as I explain in the next section.

Two lessons gleaned from the best-performing stocks of 2009.

Keeping with last week’s theme of investor education, I want to define some terms that we use frequently.

2020 has surely been one for the record books—the sharpest selloff in history from a record high to a bear market and then the sharpest rebound in history from a bear market to a new record high.

After last weekend’s successful space flight of Sir Richard Branson, one would have expected Virgin Galactic (SPCE) stock to soar on Monday. Instead, it lost altitude. Sure, the announcement of a $500 million secondary offering leading to dilution was not welcome news, but part of the reason the stock fell is that investors asked, “what next?” and sold some shares. What comes next is indeed the right question since markets always look forward.

After falling over 30% in record time, the market has had a nice rebound. In less than a week the market jumped 15% from the lows. It has since stabilized somewhat with less volatility. While the worst may be over, I don’t think we’re out of the woods yet.

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.

The market’s slide this week has put our Cabot Tides back on the fence. That said, most leading growth stocks continue to act very well. All together, we’re holding our strong, profitable stocks and looking at new buys, while honoring our stops and keeping a bit of cash on the sideline.

Our financial system lies in shambles, and the dominoes continue to fall, bringing down companies and stocks in one sector after another. Consumer confidence is absolutely terrible. Friends who previously asked about my market opinion simply as a common courtesy now ask because they’re genuinely worried about their own retirement funds ... and about the future of America. And what do I tell them? “This too shall pass.”

So what’s a potential leader? I could write about some of the (very few) stocks that are hitting new peaks--only 14 stocks hit new peaks on the NYSE and Nasdaq last Thursday, for instance--but instead, I’m highlighting a company with huge growth, a big story, and whose stock is in the sixth week of building a good-looking base.

Marijuana stocks have been building a meaningful bottom since November—and there are good and bad aspects to that.

For the most part, global stock markets performed strongly in 2019. But if you dig a bit deeper, you will see sizable and interesting gaps between countries.