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Paul Goodwin offers his forecast for the economy in the new year.

The most important factor when deciding how to manage a retirement portfolio is where you are in your investing journey. In other words, are you adding or withdrawing?

We recently received a very interesting proposal from a Cabot Wealth Advisory reader who suggested an essay contest with a subscription to a Cabot newsletter as the prize for the best entry. We have never done such a contest, but the reader had obviously thought through the details, and made a very persuasive case. And we liked the idea so much that we’ve decided to hold the contest! We love competitions and we like the idea of asking Cabot Wealth Advisory readers to share their stories and we think others will enjoy reading them. The entries will give us an opportunity to get to know you better, dear reader. And the winner will have a chance to get back into the market with our best advice because the prize is a FREE one-year subscription to a Cabot newsletter!

We may not be able to implement his activist game plan, but these tips can help you learn how to invest like Carl Icahn, the contrarian legend.

Bull Put Spread

MarketWatch named Cabot China & Emerging Markets Report 2007 Investment Letter of the Year.

Unilever turned down Kraft Heinz’s buyout - for now. But chances are Warren Buffett will come back with a better offer, which is why you should buy UL.

Universal Electronics (UEIC) reported earnings yesterday and shares are up 12%. Kraft Heinz (KHC) shares are up over 8% today on news that the company has made a bid to buy Unilever (UN).

The proposed takeover of Splunk (SPLK) by Cisco (CSCO) was a big win for my subscribers, here’s why we bought options just days before it was announced.

Current Market Outlook


Last Friday saw a big, broad selloff in the market, not unlike what we’ve seen a few times so far this year. But, interestingly, while those other selloffs lasted a few days, this one might not—the market snapped back vigorously today. All of this is short-term stuff, of course; the overall trend is still generally sideways and few stocks are running away on the upside, so we’re not suggesting it’s time to become fully invested. But we’re seeing evidence that selling pressures are fading, which, if earnings season goes well, could launch a sustained advance.

This week’s list has a nice mix of charts; some are super-strong, some are tight after prior advances. Our Top Pick is MobilEye (MBLY), a company with as big a growth story as you’ll find and a chart that’s showing strength after a long decline. Stick with a small position and expect volatility.

Stock Name	Price	Buy Range	Loss Limit
WABCO Holdings (WBC)	0.00	124-126.5	116-117
Qunar (QUNR)	0.00	43-44.5	39-40
Universal Display (OLED)	187.54	45.5-47.5	41-42
Newfield Exploration (NFX)	0.00	36-37.5	33.5-34
Netflix, Inc. (NFLX)	423.92	540-560	490-500
Mobileye N.V. (MBLY)	0.00	43-46	38-39
First Solar (FSLR)	83.74	60-63.5	54-55
Esperion Therapeutics (ESPR)	0.00	98-100	89-90
Depomed (DEPO)	0.00	25-27	22-22.5
Builders FirstSource (BLDR)	44.12	12.5-13.5	11-11.5

Try to think of every trade you make as one of 1,000 you’ll make over many years and try to take things “inch by inch.”

Cabot’s market timing disciplines give clear signals for when to trust the bull and how to get out of the way of the bear.

Through most of the summer, investors had become increasingly confident about the strength and direction of the economic recovery, the likelihood of the arrival of several promising Covid vaccines, another round of federal economic stimulus and other favorable indicators.

Cannabis stocks are now trading like the group is no longer a viable sector.

I do not believe that is the case. True, companies continue to face pressure from price wars and unbridled issuance of permits for new stores in New Jersey and elsewhere.

But ultimately, the fate of cannabis businesses lies in the hands of politicians.

While everyone is focused on the near-term risks and inconveniences of this pandemic, lasting changes are being forged. Major events have a way of reshaping the American psyche and changing behavior. This pandemic ordeal is forever altering aspects of our culture, creating an a unique opportunity for investors.
In this month’s issue I highlight a stock that directly benefits from the fact that people will continue to do more things from home than they did before the pandemic. It sells popular packaged food brands. Business is booming and should stay good for a long time.


A former slow-growth stock is being transformed into a fast-growing, high-yielding investment that is ideal to hold through the crisis and beyond. Investors are just beginning to realize the opportunity. But you can still get in cheap.

For the first time in a while we’ve had a relatively calm week. On average, our portfolio is unchanged from last Thursday’s close.

In this issue I highlight two timely stocks for purchase now.

Under normal market conditions growth investors like to get pulled into strong stocks and buy them as they head higher. This is anything but a normal market, however!

We could see some funky trading action next week since the Wednesday Fourth of July holiday will mean a lot of people out of the office. But then the market will start looking forward to Q2 earnings reports, which will begin to come out in late July and early August. Stay the course as the volatility probably isn’t over hasn’t yet translated to lowered growth expectations.