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Throughout U.S. history, federalists and states’ rights advocates have battled it out. Federalists believe in strong centralized power. The other side wants issues to get resolved locally. Federalists are usually on the left, and states’ rights advocates are normally conservatives. But not always. It depends on the issue.

In general, I like this trend and I think it has a long way to go … but there are two risks to be aware of today. The first is market risk. While the rebound over the past six weeks has been awesomely profitable for leading stocks - the ones being driven by institutional buying - the breadth of the market is not quite good enough to allow me to relax. I still fear that a “re-test” of that August low may still be possible.

This month marks a special time for us at Cabot: The 39th anniversary of the first issue of Cabot Market Letter, our flagship newsletter. In honor of this anniversary, I interviewed Cabot’s publisher and president Timothy Lutts, and Cabot Market Letter’s current steward, Michael Cintolo.

At the beginning of August, Cabot Benjamin Graham Value Letter featured four buy recommendations that collectively have outperformed the stock market indexes by a noticeable margin. I’m featuring one of the stocks here because it’s still clearly undervalued.

Here’s one of the biggest differences between successful and ineffective traders: The market can change its tune in a heartbeat but ineffective traders cannot...or at least they refuse to try. These traders think everything has to make sense, and rapid changes in direction rarely make sense, so they fight the new trend.

Earnings have been sensational. Reported earnings for S&P 500 companies have grown an average of 2% in the fourth quarter, compared to an expected -11%.

The iffy action we saw among growth stocks in September has turned into a severe selloff so far in October. Our Cabot Tides are still neutral, but we have to be cautious given the recent volatility. We did some selling yesterday so no further changes tonight.

Markets searching for direction received a boost yesterday as Tesla left earnings estimates in the dust. Quarterly profit was $3.3 billion on revenue of $18.8 billion. Despite the shutdown in China, Elon Musk said the company likely would produce more than 1.5 million vehicles in 2022, up 60% over last year.

The market took a hit today, which wasn’t totally unexpected; overall, the damage was contained, with the Cabot Tides remaining positive and most growth stocks still in good shape

This week earnings season really gets in gear … buckle up, and be prepared to jump into some earnings season winners if the market can continue to show signs of strength.

This week earnings season really gets in gear … buckle up, and be prepared to jump into some earnings season winners if the market can continue to show signs of strength.

“Too big to fail” distorts the very principles on which capitalism rests by privatizing profits and socializing losses. It’s time to confront the problem.

Despite a couple concerning days to start the week, the bulls took control on Thursday and Friday as tech titan Nvidia’s (NVDA) earnings blowout triggered a “risk-on” bull run.

I know that you’ve probably been reading headlines about the perilous state of the Chinese economy, and you think that investing there is too nervous-making to attempt. I have two pieces of evidence to help convince you that adding some China to your portfolio is a good idea. First, let’s have a look at a daily chart of PowerShares Golden Dragon Halter USX China ETF (PGJ) showing its performance during the last six months.

Why is the U.S. economy growing much faster than all the pundits and economists expected? The answer might be deregulation.

Your investment process should be similar to the intake process when you visit the doctor’s office, checking every stock’s vitals first.

Russia’s invasion of Ukraine has sparked even more volatility in the markets. But these three momentum ETFs are actually benefitting.