Search

The biggest story of the past few weeks has been the Fed’s renewed jawboning for higher-for-longer interest rates, with the Fed Chief even saying hikes could re-accelerate this month (0.5% instead of 0.25%, etc.) if economic data remains too hot. Indeed, since the start of February, Treasury rates have risen an average of three-quarters of a point or more, while futures are starting to price in another 1.25% of hikes this year, up from 0.5% expected just a month ago. Translation: A lot of rate-hike worry has been priced in during the past few weeks.

The market remains in a solid uptrend, though there’s no question some sellers are beginning to step up, with more volatility in the Nasdaq seen in the past month and, outside of chip stocks, some churning in the leading stocks. That’s not bearish, per se, as we’re still riding our winners, but for new buying we’re being more selective and looking for fresher leaders that have recently emerged with some power. In the Model Portfolio, we sold one stock in the past two weeks while starting a half-sized stake in one of those fresher leaders, and tonight, we’re averaging up in that name and starting another new position, too.

One great way to find high-potential stocks is to look for breakouts to new highs right after a market correction.

The market has been strengthening, so from a top-down perspective, there’s little to complain about, as the major indexes have acted very well following the early-October buy signal. Individual stocks, however, have been very tricky—defensive stocks are being bought while many potential leading stocks continue to meander.

No question this is a challenging market but Explorer stocks held their ground. Cloudflare (NET) had a good week up five points, and Ford (F) remains my favorite pick on risk/reward basis. This week we move to a surprising trend that will benefit America, the climate, and your portfolio.

Editor’s Note: For most of its run, Chief Analyst Carl Delfeld has referred to the Cabot Global Stocks Explorer advisory by its short-hand name, “The Explorer.” So we figured we’d join him! We have decided to shorten the name of this publication to simply, “Cabot Explorer.” The product won’t change at all. This merely puts more emphasis on the purpose of this advisory, which is to “explore” for new, often hard-to-find stocks and sectors ready to break out - regardless of market. Enjoy!

Markets seem to be paying more attention to valuations and looking to confirmation from earnings that the economy is moving to growth mode. Stocks are likely to churn a bit for a while after their great uptrend in the last year. We’ll discuss today why SPACs have cooled a bit even as they spread to Asia, and present a new idea to watch which offers huge growth potential but may be a bit pricey.

Happy New Year to everyone - I wish you and your families a healthy and prosperous New Year. As we turn the page to 2022, let’s review some trends before getting to a company with a new device to shake up and lower costs in healthcare at home and around the world.

While the coronavirus concerns are still high, stocks have recovered their footing, as China has taken steps to stimulate its economy and markets.

The Cabot Global Stocks Explorer portfolio is holding up well, though Luckin Coffee (LK) sold off hard and then sharply rebounded this week. Our emerging markets timer (EEM) is marginally positive, and in an uptrend in the last month.



Today’s recommendation is a leader in fintech with a great growth story, strong numbers and an attractive entry point.

Fed Chairman Jerome Powell again threw a wrench into the market by warning that a couple of more interest rates hikes are probable this year. “The process of getting inflation down to 2% has a long way to go,” he told the House Financial Services Committee during a three-hour hearing. Not sure why they don’t get this over with.

Indian Prime Minister Narendra Modi arrives in America on his first official state visit with India’s geopolitical pull higher than at any point since he took power in 2014.

In today’s note, we discuss the recent news developments concerning Nokia (NOK), Vodaphone (VOD), Janus Henderson Group (JHG), Fidelity National (FIS) and B2GOLD (BTG), with a particular emphasis on the latter due to recent precious metal market strength.