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Well, the results are in for the first half of the year. And they’re very good. The S&P 500 soared an impressive 14.5% in the first six months of 2024. That’s a 29% annual pace. And it follows a 22% market return in 2023.

But I believe it is unlikely that the S&P will finish the year up 29%. That would be an epic year, but there are still a lot of challenges, like interest rates near the highest level in two decades. That means market returns must at least flatten out somewhat going forward. It’s also true that the technology rally has petered out in the last few weeks.

The market took a jab to the face last week, but it still looks good. It’s still a strong market. But one that is showing some vulnerability.


After a great first half and a strong July, the market pulled back 2% last week, reversing most of the July gains. The culprit was a Biden administration announcement of new AI chip export restrictions to China. That news also combined with a perceived likelihood of a Trump presidency and the possibility of further trade frictions with China. The technology sector, and semiconductor stocks in particular, took it on the chin.

The market has been fantastic. But it was driven higher by technology. Now, technology is rolling over. Will the market roll over too, or will the neglected sectors pick up the slack?

What a difference two weeks make! From the close on Monday, August 7 to the close on Monday, August 14, the S&P 500 was up about 8% and is again flirting with the high.

The market fell a lot from mid-July to early August. But it has since recovered all the losses. While the S&P is back near the high, the last month has been a wild ride to nowhere. Now what?

This market just continues to impress with the S&P within a whisker of the all-time high in these waning days of summer.

Why shouldn’t the market be strong? Everybody expects the Fed to start cutting the Fed Funds rate next month. The benchmark 10-year Treasury rate has fallen below 4%. And there’s no recession in sight. We’re getting the lower rates without the requisite economic pain.

Few things are more enduring than America’s love of a good hamburger. Indeed, the iconic sandwich is so much a part of the country’s pop cultural heritage that, according to numerous opinion polls, it’s one of the first things foreigners mention when asked to name the most American symbol they can think of.

“What’s that got to do with the price of eggs?” is an adage that was once commonly used to question the relevance of a particular subject introduced to a conversation. But in light of current economic conditions—and as it pertains to this month’s stock recommendation—that question is entirely relevant.

Indeed, the price of eggs is just one of many concerns for millions of Americans today as inflation remains a thorn for the economy and for policymakers. Record-high egg prices have become emblematic of the larger question of inflation’s persistence, particularly for retail food costs.

Today we’re taking a half-sized position in an emerging MedTech company disrupting the insulin market. It has developed a fully automated device that removes many of the headaches associated with insulin pumps, which have kept adoption of those systems in check.

It’s a rapid-growth company with one product already approved by the FDA, and more solutions in the pipeline.

All the details are inside the November Issue of Cabot Small-Cap Confidential.

Most of our cannabis companies reported earnings in the past week.

Here are some of the key sector insights, followed by company updates.