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Last week I downgraded four stocks to Hold, and this week I recommend selling two—one for a fat profit and one for a quick loss. Still, because I keep adding a new stock every week, that leaves nineteen stocks in the portfolio, and most of them are acting very well!

As to this week’s recommendation, it’s a real wild card, a recent Chinese IPO that has been spun off from one of the big Chinese leaders. Risk-averse investors might want to give it a pass, or at least wait until there’s an established uptrend, but if you can handle the risk, buying down here might work out really well!

The market’s main trend remains up, with many major indexes hitting new highs in recent days—and many of our stocks doing the same. Those are the stocks you should hang onto tightly—because there’s no telling how far they’ll run.

The overall bull market remains in good shape, with most indexes and stocks trending up. But earnings season, which is now underway, will likely have a big impact—even today we saw lots of distribution among growth stocks ahead of their reports this week and next.

After a brief shakeout last Monday, supposedly on fears that Italy would leave the EU, the market reversed course and has been pushing higher and higher since, supposedly cheering on the continued strong performance of the U.S. economy.

I’m enjoying the ride, and I assume you are, too. But I must remind you that good news is prevalent at market tops, while bad news is what you wallow in at market bottoms. So keep your eyes on the exits—while continuing to hold the best stocks as long as the market supports them.

As to this week’s stock, once again I’m trying to buy low, with a recommendation of Crista Huff that should soon see improved earnings thanks to last year’s huge merger.

Occasionally, I will lower ratings on stocks that rose too far, too fast, and raise ratings on the stocks that present the best opportunities. Today, I’m raising the ratings on Carnival (CCL) and Vulcan Materials (VMC) to Strong Buy, and I’m lowering the rating on FedEx (FDX) to Hold.

Many Smart Investing portfolio stocks are trading in narrow, sideways price ranges, since having a strong initial rebound from the winter’s stock market correction. Those trading ranges give us good guidance on how to proceed with stocks.

With the market in a downtrend—though possibly ready for a rally—the prudent course is to continue to focus on strong sectors (like energy) and cheap stocks, which is what we’re doing with today’s recommendation.



As for the current portfolio, we’re down to 15 stocks, from a maximum of 20, and selling none of them today.



Details inside.

With three strong weeks of action behind us, all market trends are now positive—plus we’ve come through the often-tricky September-October period with minimal losses—so I once again recommend that you be heavily invested in a diversified group of stocks that meet your investing needs.

Today’s recommendation is a consumer name you know well, a medical juggernaut that’s cheap and pays a good dividend.



As for selling, I’m doing none today. The portfolio is full, with most stocks going the right direction.



Details inside.

Today we are jumping into a small-cap biotech company that has a drug delivery platform that could completely revolutionize how injectable drugs are delivered.

The short version is that millions of people that require injections could, if all goes well, just take a pill instead.



While the risks are meaningful with any biotech, so too is the potential. Early data shows this platform works, and already there are programs being designed to deliver treatments for osteoporosis, Type-2 diabetes and arthritis.



It’s all inside this month’s Issue.

Last week we sold four stocks from the portfolio, clearing away the weakest stocks and giving us some breathing room (and cash), so this week there is no need for more selling But I do have two downgrades to hold (CSCO and SE).

As for today’s recommendation, it’s a household name whose stock is temporarily on sale—and you get a nice dividend too.



Details inside.

Two stocks depart from the Special Situation Portfolio and the Growth Portfolio today, respectively, while another joins the Growth & Income Portfolio.

Many are surprised to learn that the concept of telehealth wasn’t a direct result of the Covid pandemic in 2020. Indeed, the practice of online consultations between patients and medical personnel has been practiced for over 20 years, and this month’s featured company is arguably the first one to bring it to global prominence.

The honeymoon phase for a second Trump term continues on Wall Street. Stocks are up 3.5% in the week since Trump won the election, with all three of the major indexes advancing to new all-time highs. The reaction is being framed as specific to Donald Trump and his potential influence on stock prices – the so-called “Trump Trade” – but in reality, this is nothing new.

In recent years, there’s always been a honeymoon phase for stocks after a presidential election – regardless of which party or candidate won. And it typically lasts until the newly elected president’s inauguration in late January.

After a brief dip following the post-election euphoria, the market is right back to a new high.

So far, the promise of stronger economic growth is more than offsetting the likelihood of higher interest rates for longer. As a result, new sectors have emerged as market leaders. Cyclical sectors have taken off. The financial, energy, and consumer discretionary sectors are leading the market. Those sectors are up 9.3%, 5.7%, and 8.6% respectively in the three weeks since the election.

The broadening market rally has been usurped by the return of tariffs, at least for now.

The market is unnerved to start this week after President Trump threatened the European Union (EU) with additional tariffs and the EU is threatening retaliatory measures. The issue caught investors by surprise and is threatening to derail the ascending market.

The catalyst that has driven this market higher for more than two years got punched in the face on Monday. Is it the end of the gravy train or just an overreaction?

Stocks came crashing down on Monday. The S&P 500 was down almost 2% and lost most of this year’s gains in one day. The tech-laden Nasdaq index fell more than 3%. It was all because of some upstart Chinese company.

After the tumultuous sell-off in the broad equity market last month, the S&P 500 Index is back to within a few points of its all-time high as of this writing in what has been one of the fastest comebacks in recent memory.

The resilient summer market got a cold slap in the face last week. There was a big recovery on Monday. But the market still looks wobblier than it did a week ago.

One day’s headlines seemed to undo the positive market narrative.

Given how tenuous the market looked heading into August, it’s hard not to be pleased with how the month turned out—the wild volatility of May, June and July subsided, leadership emerged and most stocks moved higher. We latched onto more than a few solid winners, which we’re pleased with. But now, with the market having pushed back toward its springtime highs, the rubber is likely to meet the road—the set-ups are there for the indexes and many leading stocks, it’s a matter of whether big investors back from vacation are willing to push stocks higher. Right now, the evidence remains bullish, so we remain optimistic that higher prices are ahead.

This week’s list has many of those set-ups; several stocks have tightened up during the past two or three weeks after bullish earnings reactions. Our favorite of the week is Eagle Materials (EXP), one of many housing-related stocks that look to be near good entry points.

Stock Name	Price	Buy Range	Loss Limit
Agrium (AGU)	0.00	96-98	-
Apple (AAPL)	248.94	640-660	-
Cirrus Logic Inc. (CRUS)	0.00	39-41	-
Cooper Tire (CTB)	31.50	19-20	-
CYT (CYT)	0.00	66-68	-
Eagle Materials Inc. (EXP)	0.00	41-43	-
The Flowserve Corporation (FLS)	54.70	122-126	-
Medivation (MDVN)	0.00	105-111	-
Toll Brothers Inc. (TOL)	0.00	31.5-33	-
Zillow (Z)	76.64	40-41	-