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Any income investor should know how to reinvest dividends. Whether you should depends on what you’re looking for as an income investor.

Cyclical stocks and sectors are poised to outperform in the year ahead due to the underreported economic boom that could translate to the strongest economy since the bull market began.

America’s housing market has been in a deep freeze for years, thanks to high borrowing costs and skyrocketing prices. But signs of hope are starting to emerge, and it’s possible a long-anticipated thaw is coming now that mortgage rates have dipped below 6%.

Could 2026 be the year of the U.S. housing turnaround? Possibly. But even if it isn’t, today we add a housing-adjacent stock that should fare well either way – especially since it’s trading at a deep discount. I see 36% upside, possibly within a matter of months. It’s a name you know well – whose products you’ve almost surely used and likely have in your garage right now.

Details inside.

In this week’s video, Mike Cintolo still sees an overall intermediate-term downtrend in the market, but he’s beginning to spot the first signs of a thaw.

Many stocks are acting just fine, so once this pullback ends, there should be plenty of leaders to jump on. Here are some stocks on our watch list.

These are uncertain times. Risks abound, yet the market forges to new all-time highs. With so many things we can’t know about the virus and the election, it’s a good time to focus on what we do know.

Certain powerful trends will continue regardless of what the economy does or who’s President. One such undeniable trend is the aging population. The population is older now than it has ever been before. And it’s getting still older, at warp speed. The aging population is an irrefutable fact. And older people will require more health care.



This mega trend is literally transforming the demographics of the human race. It will be a huge tailwind for the health care sector in the future. At the same time, many great health care stocks haven’t gotten nearly as pricey as the overall market. And they tend to hold up well if things turn south.



In this issue I highlight one of the very best health care companies in the world. The stock is defensive and barely budged when the market crashed. Yet there are huge growth opportunities ahead as it sells cutting-edge treatments and drugs for illnesses and diseases to a public that will demand them like never before.

With market jitters returning following the Fed’s meeting yesterday, we’re going back to a segment that’s served us well so far this year – MedTech.

Today’s portfolio addition is another highly specialized company that’s doing things far better than the competition and growing by over 30%.

Enjoy!

Last week has the potential to be a landscape-changing week for the market, as the major indexes performed well and, more importantly, leadership quality stocks displayed bullish action. That’s the main reason our Market Monitor above is tilted toward the bulls. Of course, it’s just one week, and nobody who studies the market can declare with certainty that the bear market is over. But it’s all about progress, and last week was a big step in the right direction. This week’s Top Ten remains heavy in energy and commodity stocks, but OptiMo (our screening system) turned up many more candidates than in weeks past; should the market continue higher, we expect many of the leaders to be featured right here in the weeks to come. Our favorite of the bunch is Exco Resources (XCO), a little known energy firm that’s showing tremendous accumulation as prices escalate. Try to buy on weakness.

Stock Name	Price	Buy Range	Loss Limit
FSLR (FSLR)	0.00	250-270	-
FST (FST)	0.00	52-56	-
LUK (LUK)	0.00	48-53	-
MEE (MEE)	0.00	44-47	-
MMR (MMR)	0.00	18-20	-
MOS (MOS)	0.00	112-120	-
RYL (RYL)	0.00	34-37	-
SCHN (SCHN)	0.00	75-79	-
XCO (XCO)	0.00	17-19	-
XEC (XEC)	0.00	53-57	-

We knew a correction was on the way, and the market delivered it last week. The major indexes still look fine, but we’re a bit wary of the action of leading stocks—even in recent days when the indexes are up, most leaders are dropping. That doesn’t mean the bull move is over, but as you can see in our Market Monitor above, we’d cool our heels a bit; don’t hesitate to take a few chips off the table, and remember to cut all losses short. As for buying, we believe this week’s list offers many of the top leaders in the market in various sectors. Not all are near good buy points, but any further weakness should bring them there soon. Our favorite of the week is Hercules Offshore (HERO), a shallow-water driller that has recently emerged from a tight consolidation. We do feel that many energy names can pull back, but HERO should pull back less than most.

Stock Name	Price	Buy Range	Loss Limit
ANR (ANR)	0.00	60-66	-
CLF (CLF)	0.00	87-97	-
CLR (CLR)	0.00	53-57	-
ENER (ENER)	0.00	45-54	-
FRO (FRO)	0.00	58-64	-
HERO (HERO)	0.00	32-34	-
MMR (MMR)	0.00	28-32	-
SOHU (SOHU)	0.00	70-76	-
SU (SU)	0.00	66-70	-
X (X)	0.00	160-170	-

The market continues to be on edge but having lightened up over the last two and a half months we’re in a decent position to add some exposure today.

This month’s issue offers fresh opportunities in the red-hot pharma space, as well as two little-known mid-cap industrial stories, one in radiation protection and the other in the oil and gas market. Wrapping things up is an introduction to what’s arguably the best play on utility-scale solar.

Enjoy!

While Cabot Top Ten Report is often seen as being for more aggressive investors, some of its picks have turned out to be great longer-term investments. The key is finding stocks that have appeared multiple times in the Report, often as Editor’s Choice.

Depending on how sophisticated you are, you can save on your living trust cost by creating it yourself or with the help of an online service.

With the market still in a downtrend, defense continues to be important.
Cash is the simplest defensive asset, but low-risk stocks, undervalued stocks, dividend-paying stocks and stocks in sectors bucking the downtrend are all worth considering.



My recommendation this week is a well-known automaker with great prospects in the electric vehicle space whose stock is trading 38% off its recent high.



Details inside.

Smart Marijuana Investing + 2 Stocks to Buy and 1 to Avoid | Timothy Lutts, Chief Analyst of Cabot Marijuana Investor, talked about this explosive new sector that’s guaranteed to mint millionaires for those who buy the right stocks. PLUS Tim gave the names of 2 hot stocks to buy and one to avoid at all costs!