Search

Newsmax (NMAX) shares skyrocketed in the days following the IPO but quickly crashed back to earth, a look at the S-1 shows you shouldn’t buy the hype.

The underperformance of the formerly dominant Mag. 7 has lately earned those stocks the dismissive moniker of the “Lag 7,” but are they too cheap to pass up?

Want to earn 18% returns a year like famed hedge funder Dan Loeb? Here are four ways he’s done it. What can you take from it?

Hardly a week goes by without a story or two about the growth of algorithmic strategies or other purportedly nefarious market schemes.

With a better understanding of self-funded health insurance, you may be able to get some tax-free benefits.

German auto stocks have been red-hot the last three months, and they have China to thank for it. But will the real long-term winner in China be Tesla?

Find out what DRIP stocks are, and why they are the most important key to that easy money everyone dreams about.

With residential property values skyrocketing and still-low interest rates, now just might be the perfect time for a cash out refinance.

The late Pete du Pont would not have loved the proposed capital gains tax hikes, and they could take a bite out of your investment profits.

Options education is one of my main goals for Cabot Options Trader subscribers. And here are three important lessons I’ve been telling people lately.

Cannabis legalization is spreading but cannabis stocks are trading near all-time lows, which leaves these four industry leaders poised for a rebound.

Thank you for subscribing to the Cabot Turnaround Letter. We hope you enjoy reading the February 2022 issue.



The market seems to be ignoring small- cap stocks. We highlight four high-quality small- cap companies with beaten down share prices. And, amidst the rubble of initial public offerings, we found three worthwhile companies whose shares trade below their IPO price. We also briefly comment on the market’s recent sell-down, and provide an update on the performance of our group of recommended stocks, which have held their value so far this year.



Our featured recommendation this month is Polaris (PII), the leading North American manufacturer of powersports equipment including off-road vehicles, snowmobiles, motorcycles and boats. Investors are overly -discounting near-term issues, leaving the shares significantly undervalued.



We note our recent price target increase for Baker Hughes Company (BKR), from 26 to 31.

Inflation is dead.

OK, it’s not “dead.” But at 2.9% in July, as reported Wednesday morning, it has now (narrowly) reentered the Federal Reserve’s magical 2% realm for the first time in nearly three and a half years – since March 2021. For all the inflation angst during those past three and a half years, the market has fared pretty well overall – the S&P 500 is up 30% since the first CPI print north of 3% was reported in mid-May of 2021. On a per-year basis, that only slightly trails the average annual return in the large-cap index of 9.9% since its inception in 1928.

This is the 13^th bull market in the S&P 500 since 1950. If it ended today, it would tie for the shortest – just over 21 months – with the last bull market, the post-Covid-crash rally that began in March 2020 and tidily peaked at the end of 2021. The average bull market, according to statistics from Ryan Detrick of Carson Investment Research, lasts 65 months.

Does that mean this one can’t up and fizzle right now, taken down by a “carry trade” in Japanese equities, one bad U.S. jobs report, and a whole lot of political (presidential election) and social (war in the Middle East possibly spreading) uncertainty? Of course not. We know a bull market can last only 21 months because we just saw it happen.

The success of headliners Walmart and Target in the last week has helped drive consumer staples stocks as a group up nearly 5% in August. No other S&P 500 sector has performed better this month. And yet, consumer staples are “only” up 14% year to date, trailing the gains in the S&P 500 (17.3%).

Thus, the sector as a whole is still undervalued. That spells opportunity.

The market seems to be a bit complacent given the risks of the virus spreading rapidly in China and elsewhere but we need to remain a bit cautious. There is some suspicion that China is downplaying the numbers.

Even though stocks have been wobbly today the last week has been very constructive for our portfolio. As of mid-day today, our portfolio is up an average of 4% from last Thursday’s close, and only two positions are down (neither by more than 2%).

Small and large cap indices are up around 2.4% from Friday’s close and the portfolio is up almost 5%.

The earlier people retire, the sooner their cognitive functions begin to decline.