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Sell Veralto (VLTO); Note on Rivian (RIVN); AST Spacemobile (ASTS) Taking off

WHAT TO DO NOW: Despite the indexes holding up today, lots of growth stocks are again coming under pressure, continuing a wave of late-week distribution. We’re already holding a lot of cash, but today we’re selling one more position—Vertiv (VRT), which had been trying to hold up but the late-week selling pressure has been too much, cracking the stock. We’ll sell our half-sized position and hold the cash, leaving us with around two-thirds on the sideline in the Model Portfolio.

Sell Remaining Quarter of Paramount Global (PARA). Bloomin’ Brands (BLMN) Earnings Update.

Thanks to poor leadership and a devalued currency, Brazil stocks have been among the world’s worst performers this year. Which means it’s time to buy.

ABBV stock was hit hard after AbbVie acquired Allergan for $63 billion. But there are ways to profit from the AbbVie-Allergan deal in the long run.

Emerging market stocks in general strengthened this week, keeping our Cabot Emerging Markets Timer firmly on the positive side. Our new stock is an express delivery company with a China-wide network that covers 96% of China cities and towns. We have ratings changes on two of our stocks.

The last two market-driving events of 2022 arrive this week with the latest CPI data (Tuesday) and the Fed’s latest interest rate hike (Wednesday). How those numbers look versus expectations will largely determine how this week, and the rest of December, goes. To have all our bases covered, we continue to add a blend of investment types and sectors. And this week we add something we don’t currently have in the Stock of the Week portfolio: a biotech, recommended by our resident growth investing expert, Mike Cintolo.

Our portfolio is outperforming the index by roughly 100%, on average. But we’re not the only ones. Many targeted mutual funds are also demolishing the Russell 2000 Small Cap Index.

With earnings season largely over most of our stocks are now moving based on news that affects the broad market, and less on company-specific trends, with a few exceptions.

The odds of a June interest rate increase have now fallen to 47%, from 60% earlier this month. A December rate hike is seen as even less likely, with odds currently at 37%, down from 56%. That’s led to additional gains in bond alternatives like utilities.

This week, we comment on earnings from Bayer AG (BAYRY), Berkshire Hathaway (BRK/B), Dril-Quip (DRQ), Holcim (HCMLY), Kohl’s Corporation (KSS), Macy’s (M), Six Flags Entertainment (SIX), Viatris (VTRS), Volkswagen AG (VWAGY) and ZimVie Holdings (ZIMV).


Next week, we provide an update on earnings from ESAB (ESAB) and Duluth Holdings (DLTH), which should wrap up this earnings season.

After six consecutive weeks down, the market has generally given up all its gains for the year; taking profits when they were there was definitely wise. But this week the market is up—so far—and I’m watching carefully to see which of our stocks bounce like tennis balls—and which bounce like eggs. The best tennis balls can still be your road to profits.

Overall, though, the climate is definitely unsupportive, and thus a defensive stance, including plenty of cash, is warranted.

I hope that you had a wonderful Thanksgiving and that you’re recovering well from your turkey hangover. Thanksgiving is when we celebrate all that we are grateful for, but it’s also a holiday of retail deals, holiday sales and shopping. Many Americans start their seasonal gift buying on Black Friday, but if you didn’t join the shoppers yesterday , or if you have more presents to buy, this issue is for you. Today I’m going to highlight some of the best books for the investor on your gift list, all recommended by the Cabot editors.

Remain bullish, but take things on a stock-by-stock basis. The market has begun to pull back after a great couple of months, and stocks could easily correct and consolidate further.

Today I’ll give you a short list of the biggest challenges of bull markets, plus a little advice about how to deal with them.

With residential property values skyrocketing and still-low interest rates, now just might be the perfect time for a cash out refinance.

Bitcoin and marijuana stocks have both hit a wall in the last couple months. But the long-term outlooks for both are very different.

Finding long-term stock winners isn’t as hard as you think. Hanging on to them can sometimes be the tricky part. Here are two rules to stick by.