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If you take time now and then to think about the long-term changes going on around you, you can put yourself in position to benefit from them financially, by making the right investments. The most successful investors are not only far-sighted; they are also courageous enough to buy and hold these stocks when they were flying high and more cautious investors warned, “That P/E ratio of 100 means the risk is way too high.” So today I’m going to mention 10 big trends I see developing, and suggest 10 investments that might benefit from these trends ... starting with global trends and narrowing focus from there.

NetLogic Microsystems (NETL) recently earned a spot in Cabot Top Ten Report.

The market’s weakness didn’t last long; the indexes snapped quickly back, though breadth is not quite as good as previously. Still, the market strength restores my confidence that we’ll see higher highs in the months ahead, and I recommend that you invest accordingly.
For today’s recommendation we swing back to the aggressive side. Remember those promises of DNA-based personalized medical treatments from a decade ago? We’re getting closer and today’s recommendation is a leading force in the field.

Passive real estate investing is surging in popularity as it promises the wealth-building power of real estate without the headache of managing properties and tenants. This month’s issue features the pros and cons of passive real estate investing, the types of opportunities available to investors, and what you need to know before you get started.

The 10 highest-paying dividend stocks in the Dow Jones Industrial all yield more than 3%. But which of them would I buy today?

I’ve chosen five great dividend-paying stocks from the latest issue of the Dividend Digest to tell you about today.

The chances that the stock market will rise another 18% during the next 12 months or so are pretty good.

Top Stocks to Make You Money Now, Regardless of Investing Style | Nancy Zambell, Chief Analyst of Wall Street’s Best Investments and Wall Street’s Best Dividend Stocks, talked about where to make money, no matter what your investing style is. PLUS she shared the best top Growth, Value, and Income picks so far this year!

Growth stocks have gone over the cliff during the past eight trading days, with many suffering waterfall-like declines. With our Tides negative and most growth stocks in tatters, we’ve turned defensive by quickly paring back on our names.

Since last Monday, we’ve sold three stocks and taken partial profits on three more. And tonight, we’re selling another (Autodesk) -- all told, boosting our cash position from 16% a week and a half ago to 61% after tonight’s sale. From here, we’re likely to give some stocks a little rope given the chance of a short-term snap back, and because, big picture, we’re still in a bull market. But right now it’s time to focus on capital preservation.

In tonight’s issue, we give you all our latest thoughts on the market, our stocks and some names we see holding up so far (one of our favorites is written about starting on page 6). And we also talk a bit about what to do when everything falls apart at once, offering some pointers about differentiating what to hold and what to dump.

The market continues to zoom higher amid a vacuum of selling pressure. In the short-term, though, we’re not seeing a lot of stocks at great entry points and earnings season is coming up, both of which could lead to some pullback or retrenchment, at least on a stock-by-stock basis. But longer-term, there are many positives that tell us the odds strongly favor higher prices down the road.

The broad market has gotten jumpy again, but it’s no reason to panic. In today’s issue, we review why dividend stocks are better in downturns, add a conservative-aggressive stock to the Safe Income tier, and have earnings updates on all our stocks (four have already reported; the rest will over the next week.)

After a well-deserved pullback during the past two weeks, the strong action this week from most major indexes and leading stocks is a good sign. Short-term, further wobbles are certainly possible after the strong nine-week advance off the market’s major bottom, but big picture, we remain very bullish and heavily invested.
In tonight’s issue, we write about a couple of simple tips for handling some off-the-bottom names in last year’s high-fliers, as well as reviewing our nine stocks and a couple others that look tempting.

When the market picture gets confusing, as it often does, it pays to have some reliable indicators to depend on—rather than the guy on the evening news. So today, after a couple of weeks of market correction that have done serious damage to some leading stocks and led many pundits to ask whether we’ve seen the market top, we turn to our indicators and ask whether the bull market is truly over, and here’s what they say.

The market advanced nicely today, continuing the bounce it’s enjoyed during the past week and a half. It’s encouraging action, and we’re not opposed to doing a little buying here or there given our large (76%) cash position.

That said, our trend-following indicators are still negative, telling us that, despite the nice rally, we need to see continued positive action before starting a major new buying spree. Right now, we’re mostly focused on fine-tuning our watch list, which we’re not having trouble doing given the many strong earnings gaps seen recently.

In tonight’s issue, we talk a bit about how markets usually bottom after a big decline, something that’s good to keep in the back of your mind. And we spend a lot of space discussing potential leaders of the next advance.

Current Market Outlook


Stocks had another great week, with the major indexes posting solid gains, many potential leaders approaching new highs and market breadth being so positive that it flashed a rare “blastoff” green light. Thus, our confidence is growing that the worst has passed—though that doesn’t mean the market doesn’t face many weeks of bottom building, either. Long story short, the evidence has improved, though it’s worth remembering that the intermediate-term trend of the indexes and most stocks remains down. All in all, we’re OK extending your line a bit, doing some new buying in high-potential stocks, but we’re also still keeping a good chunk of cash on the sideline and waiting for more strength to develop (maybe after a retrenchment) before turning bullish. Our Market Monitor moves to a level 5 this week.

As for the list, today is another batch of good-looking stocks from a variety of sectors, albeit with a heavier emphasis on medical. Our Top Pick is old favorite Dexcom (DXCM)—start small and build if the recent strength continues.

Stock Name	Price	Buy Range	Loss Limit
Array Biopharma (ARRY)	46.35	16.5-17.5	15-15.5
Cree, Inc. (CREE)	67.96	44.5-46.5	41-42
Dexcom (DXCM)	421.36	137-144	122-126
Everbridge (EVBG)	107.90	53-56	49-50.5
Five Below (FIVE)	134.58	112-117	100-103
Ionis Pharmaceuticals (IONS)	73.34	55.5-57.5	51-52
Keysight Technologies, Inc. (KEYS)	97.20	64-66.5	58.5-60.5
LGI Homes (LGIH)	86.04	54-57	49-51
Tandem Diabetes (TNDM)	74.77	39.5-42.5	33.5-35.5
Vertex Pharmaceuticals (VRTX)	230.36	180-187	165-169

The market has spent the past six weeks etching a volatile, tedious bottom, with numerous secondary measures offering encouragement, the biggest of which is an ongoing positive divergence in the number of stocks hitting new lows, which tells us fewer stocks are participating in the downside. That’s good to see, but what we really need to see now is real, sustained buying pressure--so far, that hasn’t been the case, so we’re remaining generally defensive.

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

Consumer staples stocks were pandemic beneficiaries, but now that the worst has passed, many of these stocks have been sold off fairly hard, even as the stock market continues to reach record highs. While investor concerns regarding negative year-over-year sales, tighter margins due to inflation, and the degree to which companies can raise prices have merit, we make our case for four stocks that have been discarded and now look like bargains.



Bank stocks have been strong performers following the pandemic stock market trough, including those we highlighted in late April 2020. Yet, not all have fully participated. We found four that have good fundamentals yet trade at price/earnings multiples below 10x, considerably lower than the peer average of 14.5x.

Current Market Outlook


First, the bad news: the intermediate-term trend of the market remains down, and there remains a wide swath of the broad market that’s in rough shape. But following some panic selling on October 15 and 16, the market’s rebound has been very, very impressive—the major indexes have quickly regained 70%-plus of their recent losses, many stocks found huge-volume support at the lows, and a few (mostly growth) stocks have already leapt to new highs. The market isn’t out of the woods, and even if it was, we’re still smack-dab in the middle of earnings season, so at the very least, volatility is a sure thing. All in all, we’re nudging our Market Monitor up into neutral territory—we still believe in holding some cash and keeping positions small, but we’re also seeing lots of stocks acting well.

This week’s list isn’t all go-go stocks, as it also has some “defensive growth” and some sector-specific winners. Our Top Pick is Celgene (CELG), a big-cap growth stock that, after 10 months of consolidation, is under extreme accumulation.

Stock Name	Price	Buy Range	Loss Limit
Union Pacific (UNP)	0.00	111-114	107-108
O’Reilly Automotive (ORLY)	0.00	166-169	159-160
Lennar (LEN)	61.85	42.5-44	40-40.5
Leggett & Platt, Incorporated (LEG)	49.79	36.5-38	34-35
Illumina Inc. (ILMN)	289.74	182-187	165-171
ICICI Bank (IBN)	0.00	52-54	48-49
Genuine Parts (GPC)	0.00	91-94	89-90
Celgene (CELG)	0.00	98-102	92-94
Alaska Air Group (ALK)	0.00	48-50.5	45-46
Akorn (AKRX)	0.00	41-43	38-39.5

With the stock market near all-time highs, there aren’t many good undiscovered stocks out there. Here are three small caps that look promising.

You’ve probably heard of the term 5G technology. But have you heard of these 3 5G technology REITs? They’re the best way to play the 5G boom.