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There’s nothing abnormal happening in the market. Stocks don’t go straight up, rather, they bounce around, whether the general trend is up, down or sideways. That said, it’s a little premature to buy low now because most stocks that are having pullbacks have not bottomed yet.

Banks have had a rough go in 2020; share prices have fallen accordingly. But these undervalued financial stocks look like good bets for 2021.

With most of the market overpriced, now’s the perfect time to invest in an undervalued energy stock that can provide superior returns in any environment.

Most investors and consumers are well aware of how reliant we are on China’s economic production and consumption, but that reliance is far more important than many realize.

It is always a good time to review your retirement planning to make sure you’re making the best use of the retirement options that are available to you.

The environment hasn’t changed. It’s a very strong bull trend in the major indexes and most stocks, with our trend-following measures solidly positive.

Following another week of hotter-than-expected inflation data and hawkish Fed speak, the leading indexes had their worst week of 2023. The S&P 500 fell 2.75%, the Dow lost 3%, and the Nasdaq declined by another 3.3%.

For the first time in weeks, and maybe even months, the markets advance felt broader, as more and more stocks participated in the market rally. That, as well as the VIX getting clobbered, has me encouraged … for now.

For the first time in weeks, and maybe even months, the markets advance felt broader, as more and more stocks participated in the market rally. That, as well as the VIX getting clobbered, has me encouraged … for now.

Following another week of hotter-than-expected inflation data and hawkish Fed speak, the leading indexes had their worst week of 2023. The S&P 500 fell 2.75%, the Dow lost 3%, and the Nasdaq declined by another 3.3%.

Our Cabot Tides turned negative last week, though we didn’t take any action in the Model Portfolio as we already had 29% in cash. We’ve seen a modest bounce this week, and with our Cabot Trend Lines and Two-Second Indicator still positive, we think the next big move is up. But until we get a new Tides buy signal, we’re holding some cash and taking things on a stock-by-stock basis.

Small caps broke above their six-month trading range last Friday (albeit very modestly and very briefly) even as tech was selling off hard. The reason appears to be that money was flowing out of small cap tech and, potentially, into small cap financials, industrials and consumer staples.

Awareness of cannabis is definitely up, but there are still major friction points, which will continue at least until the U.S. government legalizes marijuana as it has just legalized hemp.

The iShares EM Fund (EEM) has firmed up over the last few days, but has yet to actually kick out to the upside. So, while it’s still in the vicinity of its moving averages, we still have a caution signal in force.

In the February issue of Cabot Early Opportunities, we take something of a barbell approach, reviewing a couple of phenomenal large-cap stocks poised for the next big chapter of their lives while also uncovering a handful of much smaller companies, one of which is just getting its business off the ground (literally)!

As always, there’s something for everybody!

After a brief tariff scare early last week, stocks resumed their regularly scheduled uptrend. All told, the stock market is doing just fine, with the major indexes touching new record highs. But certain sectors are doing more than fine.

Sector rotation is in full swing, with investors piling into some of last year’s most unloved sectors to kick off 2026. While technology continues to wallow, up less than 1% year to date and having topped right around Halloween three months ago, the following sectors have picked up the slack...

Somewhat quietly, the Dow has rallied eight straight days, and is leading the market higher as of late. Such is the rotation of the market, especially during earnings season (which I touch on in this issue).

For the week the S&P 500 gained 1.4%, the Dow rallied 1.75% and the Nasdaq gained 1%.