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Thanks to the stock markets’ great recovery since 2009, individual investors have returned to buying stocks at a rate not seen since the third quarter of 2007. According to the Federal Reserve’s Z.1 Release in October 2014, households now have 35% of their assets—or $13.3 trillion—invested in the stock market.

Rapid recovery in the automotive and construction industries has led to a base metals boom. Buy these four base metal ETFs to take advantage.

March 5, 2015
Should you make a Date with a Target-Date Fund?

Thanks to the stock markets’ great recovery since 2009, individual investors have returned to buying stocks at a rate not seen since the third quarter of 2007. According to the Federal Reserve’s Z.1 Release in October 2014, households now have...

Ahead of a big week for the market, the S&P 500, Dow and Nasdaq all rose marginally last week.

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

Consumer staples stocks were pandemic beneficiaries, but now that the worst has passed, many of these stocks have been sold off fairly hard, even as the stock market continues to reach record highs. While investor concerns regarding negative year-over-year sales, tighter margins due to inflation, and the degree to which companies can raise prices have merit, we make our case for four stocks that have been discarded and now look like bargains.



Bank stocks have been strong performers following the pandemic stock market trough, including those we highlighted in late April 2020. Yet, not all have fully participated. We found four that have good fundamentals yet trade at price/earnings multiples below 10x, considerably lower than the peer average of 14.5x.

A few of our stocks have been taking a breather, but the Cabot Emerging Markets Timer remains resolutely positive. Investors have remained optimistic despite a truckload of negative news and the fundamentals are solid for the stocks in the portfolio. I also have an overlooked Indian stock to recommend that ties in with the recent improvement in commodity prices.

2023 has started with a bang, pushing a couple stocks in our portfolio to new all-time highs! Both of those high fliers have benefitted greatly from the return to relative normalcy in the wake of Covid, so today we add another stock that stands to get a direct bump from China’s reopening – or at least the loosening of its draconian “zero Covid” policies. The company was a pre-pandemic favorite of Cabot Top Ten Trader Chief Analyst Mike Cintolo and looks like a great value pick now as its business picks up in earnest. So, he’s recommending it again.

With today’s 9% intra-day price drop following a disappointing near-term outlook, Cisco (CSCO) shares look more attractive and we would buy/add to positions here, as the long-term fundamental picture remains healthy.

I just wanted to say thank you. I try not to be emotional about investing. I try not to listen to the news but this spring was rough. I appreciate your reminders to follow the evidence and follow the plan. It has been an amazing year! I invest my SEP using your growth and top 10 advisories. I am up 76.8% in that account this year, in spite of mistakes in the spring. Needless to say, I like that kind of annual return.
Cheri W.,

Every few months, I compile and read the results of our welcome series survey, which is taken by our newest subscribers. And while we get asked a lot of different questions on the survey, there’s one in particular that I see repeated frequently: “What are the differences between Cabot’s publications?” I’m going to explain our newsletters, one at a time in an ongoing series (similar to a series I wrote last year), to give you a better idea of how each one fits into your investing style and how you can take advantage of what we have to offer. Today I’m going to answer some of the most frequently asked questions about Cabot Market Letter. But first I want to introduce all of our publications.

The market is no longer as healthy as it was, but the bull market is not dead, either, just going through a change of character—a change that helps some of our stocks and hurts others. That’s investing!

As for this week’s stock, it’s a name you may not have heard of yet—it’s young—but lots of Chinese have, as it serves the mass market.

And in the portfolio, there are two changes—one simple sell and one “retirement” of a stock that has achieved its short-term potential but that might still be kept around for the long term.

Details in the issue.

Since the effective federal hemp-derived THC ban was approved in the latest budget deal, cannabis investors have taken the change as a sign the Trump administration is no longer serious about rescheduling.

This is probably wrong. Cannabis sector CEOs closer to the rescheduling process than most investors think the sector-changing reform is still on track.

Ironically, China’s blue-chip CSI 300 Index hit its highest point this week since February 2018.

Interest rates are heading higher.

In normal and efficient markets, a strong economy and steeply rising prices would drive interest rates much higher. But rates have been held down and distorted by the Fed’s hyper-aggressive accommodation.



The Fed dismissed inflation in the early stages as “transitory” and now realizes it missed the boat and inflation is getting out of hand. Behind the curve and embarrassed, the Central Bankers will have to make up for lost time by reversing course, ending its bond buying program and raising the Fed Funds rate.



The main force preventing economic growth and rising prices from pushing interest rates higher is about to be removed, and perhaps quickly. Under the circumstances, it is quite reasonable to expect interest rates to move higher.



In this issue, I highlight an investment in the financial sector. Many companies in the sector benefit from higher rates as they earn higher spreads and profits. This company stands to benefit not only from higher interest rates but a change in consumer behavior as well.

With the market near record highs, many stocks are trading well above the $1,000/share price level. Investors tend to dismiss stocks with basement-level prices, so we explored this maligned group in search of neglected value.

In this issue, we look at the several of our recommended stocks in this range.