Search

Your finances touch almost every aspect of your life in some way or another, and that can make tackling them feel overwhelming. This month, we’ll lay out a monthly “to-do” list that can help you save money on taxes, set aside more money, and plan for the future. Plus, the monthly breakdown will help make sure you won’t miss financial deadlines that you never saw coming.

After surging to new highs in mid-March, today’s recommendation entered into a tight consolidation pattern—and today it’s still in that pattern! While the broad market has pulled back, this stock has held up strongly, which is a very good sign.

Roku stock has already more than doubled since its September IPO. Is it too late to buy at these inflated levels? Here’s what I think.

We get lots of inquiries from people who need to play catch-up with their retirement funds, and wonder if such a thing is possible.

The Magic of Compound Interest and how it can increase retirement savings.

At a new all-time high, this is a tough market to navigate. Sure, the market could stay good for a while. But at this late-stage of the bull market and recovery, how much is left in the tank?

It’s hard to muster the enthusiasm to take on risk to get the last drop of this late stage bull market before the next downturn. While defensive stocks make a lot of sense here, most are very expensive. But there is one place where stock prices are still cheap, value stocks.

Investors have been rotating toward the long-neglected value stocks and they are starting to perk up. These stocks represent a way to get bargains in an expensive market as well as protection from the next downturn. And some stocks even have momentum.

In this issue, I highlight a stock that is one of the best healthcare companies in the world that is perfectly positioned ahead of the world’s most pronounced megatrend. It also offers great value in an expensive market and has recently found upward momentum.

The marijuana sector peaked in February, bottomed from late March to mid-April, and since then has been building a base, preparing for a resumption of the big advance.

Fundamentals in the industry remain terrific, as second quarter results have recently revealed, and the trend toward legalization in the U.S. continues, so it’s only a matter of time before these stocks enjoy their next upwave.



In the portfolio today the one small change is that I’ll downgrade Columbia Care (CCHWF), our biggest loser, to Hold.



Full details in the issue.

Today’s candidate provides digital health solutions to people with chronic health issues. Its biggest market is people with heart conditions, but it is branching out to the diabetes market as well. For a short window of time, I believe we can establish a position while shares are “on sale.”

Last June, I wrote about the world of drinking stocks. Today, I provide an update on the group, including one of the best pure beer stocks to invest in, along with another recommendation. But first, here’s why I think that Budweiser’s (BUD) new name is brilliant.

Investment leverage, which in investment terms is just a fancy word for “debt,” can move worlds of money if used properly.

I always find several excellent ideas among the comments and suggestions from our readers.

Blackbaud (BLKB), Mitek (MITK) and Primo Water (PRMW) announce earnings . BLKB is now rated Sell.

Last August, there was a lot of buzz about the film “I.O.U.S.A.” and I wrote about it for Cabot Wealth Advisory. At the time, the U.S. national debt looked pretty bad, but this was before we had failed banks, a stock market crash and a long string of government bailouts. This week brought the prediction of a 10-year federal deficit of $9 trillion, which is more than the total of all previous deficits since the United States’ founding. The White House went on to say that by the next decade’s end, the national debt would equal three-quarters of the entire U.S. economy. So I’ve come up with some solutions for how the U.S. government can alleviate some of our deficit:

I recently finished an interesting book called The Invisible Gorilla. It has nothing to do with gorillas—it’s about the tricks our minds play on us. The name comes from an experiment the authors did in which viewers were asked to count the number of times people passed a ball. If...

Yesterday the FOMC decided to move ahead with another 25bps hike, bringing its federal funds target rate to a range of 4.75% to 5%. The statement was missing the phrase, “...ongoing increases in rates would be appropriate,” which was present in the eight previous statements, suggesting the Fed may be done hiking soon.

Over the past month or so, it seemed like stocks would continue their frenetic surge. This week, however, the market appears relatively lackluster with a lot less excitement. Some investors may yearn for more fireworks, but as a value investor, I find this calm to be more sane.

Thank you for subscribing to the Cabot Turnaround Letter. We hope you enjoy reading the August 2021 issue.

With the stock market’s remarkable strength over the past five and ten years, most stocks have produced at least reasonable gains, such that even out-of-favor stocks aren’t down-n-out stocks. We look at attractive turnarounds among stocks with flat to negative five-year returns.



SPACs, or special purpose acquisition companies, are all the rage. While the group has rightfully earned the disdain of value investors, there are some post-SPAC companies worth a closer look. We highlight five.



Our featured Buy recommendation, Walgreens Boots Alliance (WBA), is viewed as a broken growth company. While its challenges are clear, its shares now trade at a bargain valuation, yet the company has sturdy finances and a new outsider CEO. This combination, combined with a sustainable (and growing) 4.1% dividend yield that pays investors to wait, makes it an attractive turnaround candidate.



During the month, we moved Macys (M) to a Hold and raised our price target on Duluth Holdings (DLTH) from 17.50 to 20.



Please join us for the our 9th Annual Smarter Investing, Greater Profits Online Conference, held on Tuesday, August 17 through Thursday, August 19. You can see presentations by all of our analysts, which will include updates in their areas of expertise and discussions of their best picks.



Please feel free to send me your questions and comments. This newsletter is written for you. A great way to get more out of your letter is to let me know what you are looking for.



I’m best reachable at Bruce@CabotWealth.com. I’ll do my best to respond as quickly as possible.

You don’t need to be independently wealthy in order to invest. Here are some ideas for investing small amounts of money that could pay off nicely over time.

We have one rating change from Strong Buy to Hold and several earnings announcements coming up.