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It’s a fast-moving battlefield, and negotiations are already underway, but somebody will come out on top. So, what stocks and countries will win the tariff war?

Switzerland is an economic powerhouse, and putting some high-quality Swiss stocks in your portfolio is a timely hedge against overexposure to U.S. equities.

Primo Brands (PRMB), Dynatrace (DT) and Dutch Bros (BROS) Report

The debt picture for the United States is growing increasingly precarious and, while it has yet to hamper stocks, it’s worth hedging against in your portfolio. Switzerland offers just such an opportunity.

The latest internet investing trend ignores meme stocks in favor of a much more relaxed (and well-reasoned) investing style, but is it really all you need?

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

While the stock market continues to set new record highs, oil and gas exploration and production (E&P) companies have been left behind. Yet, at current commodity prices, which we believe are sustainable, several companies have shares that trade at surprisingly high free cash flow yields, some as high as 24%. We make our case for five stocks.



Related to this, our featured recommendation is Marathon Oil Company (MRO), a mid-cap oil-focused E&P company. Its strong fundamentals, including a high-quality asset base, strong free cash flow and a solid balance sheet, make it particularly attractive.



We highlight three former Cabot Turnaround Letter winners whose shares have retreated since our exit. These now look interesting once again.
In this issue we also discuss three one-off contrarian ideas that have considerable appeal.



During the month, we had a few ratings changes: we moved Berkshire Hathaway (BRK/B) to a Hold, and moved Albertsons (ACI) and Oaktree Specialty Lending (OCSL) from Buy to Sell.



Please feel free to send me your questions and comments. This newsletter is written for you. A great way to get more out of your letter is to let me know what you are looking for.



I’m best reachable at Bruce@CabotWealth.com. I’ll do my best to respond as quickly as possible.

“Founded in 1904, Beam, Inc. (BEAM) is a major producer of distilled spirits, including bourbon, whiskey, tequila, scotch, rum, vodka, cognac and gin, whose brands include Jim Beam, Maker’s Mark, Sauza, Canadian Club, Courvoisier, Teacher’s, Cruzan, Hornitos and DeKuyper. It recently acquired Dublin-based Cooley Distillery, entering the fast-growing...

There are only a few companies out there that provide the software that companies can use to implement IT cost-accounting. Today’s Cabot Small-Cap Confidential candidate is pioneering the entire movement.

Last week, I wrote here about how lending-averse banks are causing a hitch in the Fed’s plan to stimulate the economy with low interest rates. You can read the issue by clicking here. I concluded by asking you if you thought the tighter lending practices were a problem, and...

All Explorer positions except Grupo Televisa (TV) advanced this past week and the emerging markets timer (EEM) is positive in an uptrend and above both its 20-day and 50-day moving averages.

Today’s recommendation is a company showing some relative strength that offers a nice blend of emerging growth and Western management. It’s a business with a diversified portfolio of fuel distribution, sugar production, ethanol and electricity, rail transportation and warehousing as well as the distribution of natural gas.

It was another good week for small caps, and the S&P 600 Small Cap Index keeps grinding higher. The 1% gain over the past week has the index well above its moving average lines and just slightly behind large caps in terms of year-to-date performance.

The fact that the major indexes and, especially, a ton of growth stocks bounced sharply late last week is a bullish sign; it at least tells you buyers are still interested, especially when it comes to some fast-growing names that recently reported outstanding results. That said, we can’t conclude the market is off to the races again—all the major indexes (save the Nasdaq) are still below their 50-day lines, the number of stocks hitting new highs is still tiny, and much of the broad market has taken on lots of water. Some new buying is fine, as is holding your top performers, but be sure to hold some cash until the market confirms a new uptrend.

This week’s list has a bunch of stocks that are acting bullishly, including a few that recently gapped up on earnings. Our Top Pick is Michael Kors (KORS), a well-sponsored name that reported a blowout quarter last week. Try to buy on dips.

Stock Name	Price	Buy Range	Loss Limit
Yelp (YELP)	41.30	86-92	75-76
Valeant Pharmaceuticals (VRX)	0.00	133-138	124-125
USG Corp. (USG)	0.00	31-33	29.5-30
Salix Pharmaceuticals (SLXP)	0.00	95-99	89-90
ServiceNow (NOW)	341.86	63-65	57-58
Michael Kors Holdings Limited (KORS)	73.22	91-96	83-84
Incyte Corporation (INCY)	76.98	62.5-65	54-55
Keurig Green Mountain (GMCR)	0.00	102-107	89-90
Tableau Software (DATA)	126.42	84-88	78-80
Canadian Solar (CSIQ)	0.00	36.5-38.5	32-33

After a nine-month-long and very deep correction, during which the Global Cannabis Index fell 54% and many stocks fell farther, there was strong buying in the sector on Friday and Monday, signaling that the correction in the sector is likely over.

Warner Bros. shareholders have enjoyed double-digit gains in December following buyout offers from Netflix and Paramount. Here’s how to play it.

Exchange-traded funds (ETFs) are a popular low-cost alternative to mutual funds that can help investors achieve their diversification goals, gain exposure to asset classes and sector trends they’re interested in, and save money while they do it. This month, we’ll dive into the pros and cons of investing in ETFs, how to identify the funds that match your investing style, and how to evaluate their risks and potential. In short, we’ll explore everything you need to know to make more money investing in ETFs.

Over the past year, I’ve had many great conversations with our Dick Davis Digest contributors, as part of our Contributor Interview Series for Investment of the Week. In today’s Dividend Edition, I thought I’d collect some of the best income investing advice these experts shared with me. Together, their advice...

I bank at one of the larger banking institutions in this country and have kept my account there for a number of years. My loyalty has been tested lately, though, on more than one occasion. My problems, though, are minor compared to bank customers who have over-borrowed and cannot keep up with the required payments on their credit cards, loans, or mortgages. And therein lies the crux of the entire problem. For the past 25 years, consumers have been borrowing too much so they can enjoy the good life. State and local governments have been borrowing too much so they can provide more and more services. And now the U.S. Government is running huge deficits to help prop up a troubled banking system and a sinking economy.