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The market remains in good health and trending higher, so while there’s always a possibility of a big correction starting any day, the important thing is to remain heavily invested, because the trend is your friend.

Most of our portfolio stocks have been performing superbly (with three hitting new highs today!), but one that isn’t is Tyson Foods (TSN), so that’s now a sell.



As for the newest recommendation, after last week’s dividend-payer, this week we swing back to the small and aggressive side of the market, with a fast-growing company that’s thriving by providing a great consumer service in the cloud.



Full details in the issue.

Landmines abound out there, especially as it relates to the Fed, with two inflation prints coming this week and the Department of Justice launching an investigation into Jerome Powell. And yet, volatility is low, stocks are near all-time highs, and another potentially strong earnings season gets underway this week. So, there’s reason for optimism, particularly given that growth stocks haven’t gone anywhere since late October. Small-cap stocks are starting to gain momentum, and today we add a Canadian one courtesy of Carl Delfeld, who last month recommended our newest portfolio addition to his Cabot Explorer audience.

Details inside.

Jerome Powell was an unlikely hero to investors last week, reviving an increasingly sluggish market with his surprisingly dovish words from Jackson Hole last Friday. So stocks remain near record highs, and volatility is low, as the prospect of the Fed finally slashing interest rates again starting next month becomes increasingly realistic. Lower interest rates are particularly enticing for housing stocks, a beaten-down sector in the face of sky-high mortgage rates in recent years. So today, we add a high-profile homebuilder that’s starting to gather momentum – enough to catch the attention of Cabot Top Ten Trader Chief Analyst Mike Cintolo.

Details inside.

The bull market rolls on (though never in a straight line, of course) and Cabot analysts continue to discover great new investments.

Today’s featured stock is an established company that manufactures a very wide variety of sensors for industry, with the automotive industry being number one. Growth prospects are good, and the stock is a bargain.



As for the current portfolio, Broadcom (AVGO) is upgraded to buy, and we’re taking profits in Barrick Gold (GOLD).

Environmental, social and governance investing sounds good on paper, but is that really what you’ll be getting when you buy an ESG fund?

In our final issue of 2022, we have another Sell and three downgrades as the market ends its worst year in more than a decade with a fitting whimper. But better times are almost assuredly ahead in 2023, and with that in mind, we’re adding a mega-cap with mega-ambitions – tackling the world’s ever-expanding obesity epidemic. It’s a potentially $1.2 trillion market by 2025. And the stock has been one of the market’s few bright spots this year, up 19%. It’s a recent recommendation from Cabot Explorer Chief Analyst Carl Delfeld.

2018 banking regulatory reform will lead to 2019 earnings boosts, benefiting four of our stocks.

It’s Trump Week, and stocks are in a holding pattern until the 45th President is sworn in this Friday. In fact, stocks have scarcely budged for the past month on the heels of the furious post-election rally.

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.

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.

CEO Special Bulletin: Position Updates

Millennials are now America’s largest generation. As they come of age, Millennial stocks are red hot. Here are three that stand out.

With electric vehicle (EV) stocks skidding, now’s a perfect time to take a page from the American consumer’s playbook and take a closer look at hybrids.

It is with mixed emotions that I am writing my last Cabot Value Investor issue. My nearly four years as part of the Cabot team have been exceptionally rewarding. I have had the opportunity to work with an exceptional research team – who bring talent, dedication and investment results that readily match and likely exceed most Wall Street sell-side and buy-side analysts. Our Cabot analysts, despite their very different investing styles, have helped me become a better investor.

After a two-week rally, the major indexes pulled back yesterday, but the retreat isn’t surprising given the market’s recent gains. The last two weeks have turned the market’s intermediate-term trend up, and conditions are in place for a sustained rally. Most importantly, the major indexes have now successfully (meaning they bounced) re-tested their correction lows three times since the start of the year.

Building an investment portfolio is scary. Here’s what you need to know so you can make money and stop worrying about losing everything.