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One tool that we’ve long used is, after a big move (either up or down), if the market starts to get very volatile, it’s often a sign that the buyers and sellers are fighting it out—and could lead to a character change. That said, we’re mentioning that more as a heads up than as any major red flag—at day’s end, the trends of the major indexes and most leading stocks are up, and it’s possible that Nvidia’s (NVDA) quarterly report cleared the air last week. All told, we’re bullish but we also think the odds favor more tricky trading going ahead. We’ll leave our Market Monitor at a level 7 while keeping a close eye on the post-NVDA action.

This week’s list has some tech leaders, but it also has more than a few names outside of the AI field, both smaller and larger. For our Top Pick, we’re going with a liquid leader where we think investor perception has a lot farther to run on the upside.

A bullet was dodged, and the bull market forges on.

It looks like the Fed is going to play ball. There was much worry among investors that the Fed would abandon the three-rate-hike goal for this year amid higher-than-expected inflation. But they didn’t. The Fed reiterated its intention for three cuts this year. The odds of a first cut in June increased to 70%.

Investors’ jitters about the dog fight in Washington, D.C. caused a sharp market correction this week that included emerging market stocks. Our portfolio also sustained a little damage, but, so far at least, it’s under control. The major uptrend in emerging markets has been dulled, but not blunted. In this issue, I look at the performance of emerging vs. developed market stocks. I also bring back a stock from last year that will give us a different take on Chinese retail.

Successful short-selling is more complex than just being “the opposite of long investing.” Shorting goes against the general upward trend in stock prices and against human nature that strives for making companies run better. But as long investors, we can use these short-selling risks to our advantage.

In this issue, we feature six stocks that have large short interest yet have pending turnarounds that could force short-covering.

Welcome to our 2025 TOP PICKS issue! Our Cabot analysts have kindly shared their top stock ideas for this year. And you’ll find that they include a variety of companies that should be attractive to investors of all styles—growth, value, dividend payers, and companies on the cusp of turning around—as well as small, mid, and large-cap stocks. I hope you’ll find one or more to your liking!

But first, let’s take a look at the economy and the markets and talk about what’s in store for this year.

Growth investing and value investing are two primary investment strategies. But it’s important to know exactly how each strategy works.

The best mid-cap stocks to buy now share similar traits: good business models and reliable sales and earnings growth. Here are three that come to mind.

Small business owners are largely being left out of the inflation conversation, but they’re feeling the pain nonetheless. Fortunately, you can take steps to combat inflation in your own small business.

FANG stocks - Facebook, Amazon, Netflix, Google - have been stuck in the mud for five months. It’s no coincidence that the market hasn’t budged either.

Want to buy Netflix (NFLX) or Amazon (AMZN) or other stocks at a discount after an earnings miss? Adhere to the Three-Day Rule.

U.S. stocks markets are now continuing their rebound from the horrendous fourth-quarter 2018 market action. The S&P 500 and NASDAQ indexes look quite bullish, while the Dow Jones Industrial Average (DJIA) lags a bit.

Bull markets are a great phenomenon; they make you feel smart and they make you money.

I’m sending this week’s update out a day early because I have a window to work now with the kids somewhat entertained with Christmas presents. And it’s always nice not to load up our team with communications the day before a holiday (Cabot is closed Friday).

A difficult stretch causes us to sell two underperformers this week but we move forward today with a high-quality Japanese company at the heart of an unstoppable trend and a high-quality stock on sale.

Not all Dow Jones stocks are appealing right now. But these 3 have the best combination of low valuations, growth potential, and compelling dividend yields.

To begin, I would like to highlight that I have decided to omit the brief company review section that followed our weekly stock updates. This section caused some confusion and the information about each company is widely available. Likewise, I’m ending the Explorer watch list. If you own the stocks on the list right now, I see no reason to sell them.

Moving on to the market, the debates regarding the market’s direction seem endless.