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As we enter the final week of the year, the leading indexes remain strong, while less popular indexes are weaker. Still, there are pockets of strength, including energy stocks, and that’s where we find this week’s recommendation.

As for our current holdings, most look good, but we have two sells today, of long-time holdings which have brought us healthy profits.



Details inside.

While the broad stock market reaches for new all-time record highs, companies that produce oil and natural gas remain heavily out-of-favor. Yet, with Big Oil stock prices down by as much as 60% since oil prices peaked at over $100/barrel in mid-2014, they look like high-yielding bargains.

In this issue, we outline our bullish outlook for six major oil companies.

This week’s update includes commentary on earnings from Adient (ADNT), Berkshire Hathaway (BRK/B), Brookfield Reinsurance (BAMR), Elanco Animal Health (ELAN), TreeHouse Foods (THS), Viatris (VTRS) and ZimVie (ZIMV).

For almost the entire time I’ve been editing the Dick Davis Digests, experts have been predicting that natural gas prices would rise. Their reasoning is that, per dollar, you can currently produce much more energy from natural gas than from oil. Since the energy produced by each is indistinguishable, the...

The one big lesson I’ve learned since coming to Cabot is that not only can you time the market, it’s one of the biggest advantages you, the individual investor, has over the big boys. You can move into or out of the market at a moment’s notice! And if you still have money in growth stocks, and you’re watching the market take away a little more every week, you need to consider trying it. Soon.

So far, earnings season hasn’t had that much of an impact on the overall market. I don’t think investors know quite what to make of this quarter. It’s bad. But everyone knows that going in.

In 1931, Humphrey Neill, who later became famous as the Vermont Ruminator, wrote a book called “Tape Reading and Market Tactics - The Three Steps to Successful Stock Trading.” What are the Mr. Neill’s three steps to successful stock trading? The first step is familiarizing yourself with the methods of the institutions that move the market. The second step is learning how to interpret the actions of both these groups and the investing public. The third step (and hardest of all) is achieving mastery of yourself; of the “temperament, emotions, and the other variables that go to make up human nature.”

This month we’re going with a small software company serving a resilient industry that has been slow to adopt to cloud technology, but which is coming on strong now.

Despite the tough macro environment this company has been beating expectations for many quarters. Management has been raising revenue guidance too, and a tweak to the business model is starting to pay dividends.

Enjoy!

“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.

Market action has gotten hairy, but it’s no reason to panic. In today’s issue I suggest some defensive moves, plus I have a new, nearly-bulletproof recommendation for dividend growth investors.

This week’s volatility has been a bit unnerving but below the drama some good things are happening. The majority of our stocks finished the week higher and Sea Limited (SE) hit an all-time high after reporting another great quarter, confirming our view that this
could be an enduring growth story. No surprise that our emerging market timer is mixed, in a very modest uptrend but still below 50- and 200-day moving averages

Today, we have a new recommendation for you as we follow Warren Buffett to a financial technology play in Brazil

Welcome to the inaugural issue of Cabot Income Advisor. It is my pleasure to share investment ideas that can provide you with a high income in today’s low interest rate world.
In this issue I highlight three stocks that are great buying opportunities right now for income investors. The stocks are chosen for their high yields, ability to generate attractive call premiums and the likelihood of capital appreciation over time.


While the market indexes have rebounded strongly from the March lows, many individual industries and stocks are still dirt cheap and high yielding, In fact, this is the best market in over a decade in which to find high yields in quality stocks.


Of course, the market is still dangerous and many high yielding stocks are in a precarious financial condition. Many will have to cut the dividend and the price will likely fall. While quality high yields are out there, stocks must be chosen wisely.


These three stocks are a great way to lock in high income and start to build your high income portfolio. Now is the time to embark on your journey to higher income and a more rewarding financial future. I look forward to being your trusted partner.

After every mass shooting, the prospect of increased gun control sparks the buying of more guns. As a result, gun stocks tend to get a boost.

It has felt like a horrible week, but the reality is that, despite both the Nasdaq and the Dow both falling into correction territory, all but two of our stocks have held above their previous lows.

When saving for retirement, most investment gurus tell you to start young, live a disciplined life, diversify and take the long view. But some of us are too old to start young. If you fit into that category, the best way for you to approach investing for retirement might be to allocate some of your portfolio for growth stocks. But make sure you have a system to follow if you choose that path.

You’ve already heard everyone and their cousins’ opinions on Greece, China and all of that (including mine a few weeks back), so I am not going to bore you with a new in-depth analysis of those situations. Instead, I’ve been thinking of the many questions and comments I’ve gotten during the past month and three lessons that we can learn from this wild period.