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Companies in Alaska may use ice islands to prospect for oil reserves.

As you may have heard, interest rates in the U.S. are at historical lows. Good if you want to refinance your house, not so good if you want to create a low-risk income-generating portfolio. We’ve already talked about a number of ways for income investors to adjust to the new landscape...

Always use Cabot’s SNaC (Story, Numbers, Chart) approach when evaluating growth stocks

Capital doesn’t care about the politics of the people who run countries.

It’s been another week of choppy trading action as more earnings reports pour in. We received a solid earnings report from Silvergate Capital (SI), and that stock has perked up.

According to the latest Gallup poll, here are 16 problems Americans consider most pressing.

This week, I’m jumping on the “one simple rule” bandwagon that seems to be sweeping the Internet to give you an investing idea that can save your portfolio when things get stormy.

The heart of earnings season is upon us, and the release of these important quarterly reports brings potential volatility for stocks of companies that are reporting their numbers.

Cintolo says Cabot is doing what they’ve always done: “give the best advice we can (which includes going to cash), and consistently put the odds in the subscriber’s favor.”

Last week’s G-20 summit was a bigger success than anyone imagined. Among other items, the group agreed to increase the loans available to struggling countries to $1.1 trillion. That boost in funding is a prime example of why I think investors should be looking toward gold--and gold miners, in particular. We’re seeing unprecedented global spending, and I think a wave of inflation may be just off the horizon. Central banks around the world have been stirring together all the right ingredients for a big batch of inflation--and last week’s G-20 summit was just icing on the cake.

From top to bottom, the Marijuana Index fell 88% from early 2018 to last month’s market low, and now the recovery has begun.

The market’s main trend remains up, and thus I continue to recommend that you be heavily invested.

However, last week’s GameStop affair has increased the risk of a well-deserved major correction and thus for the second week in a row, I’m recommending a slightly conservative stock with less downside potential—and a small dividend.



As for our current holdings, there are no obvious bad apples, but we must sell something to keep the portfolio a proper size and the victim today is our Brazilian Water company SABESP (SBS).



Details inside.

With the market still in a downtrend, defense continues to be important.
Cash is the simplest defensive asset, but low-risk stocks, undervalued stocks, dividend-paying stocks and stocks in sectors bucking the downtrend are all worth considering.



My recommendation this week is a well-known automaker with great prospects in the electric vehicle space whose stock is trading 38% off its recent high.



Details inside.

The Senate banking committee is likely to approve key cannabis sector banking reform today.


Approval would be a significant catalyst for the group. So, it may spark a tradable rally.


Short-term traders may want to sell the strength in this volatile group. Another option would be to de-lever cannabis exposure by selling a portion of AdvisorShares MSOS 2x Daily ETF (MSOX) holdings and swapping the funds into the unlevered version, AdvisorShares Pure U.S. Cannabis ETF (MSOS). That maintains exposure to the group in front of expected catalysts ahead but dampens some portfolio volatility.

It’s been an encouraging start to the year for stocks, but another Fed rate hike – and whatever choice words Jerome Powell has to say – could throw the brakes on the rally this week, at least temporarily. To prepare for another potential pullback, today we’re adding some protection in the form of a high-yield dividend payer from the healthcare industry. It’s a stock with some real momentum – up 18% in the last five weeks – but still trades at about half of where it was a year ago. And Tom Hutchinson just upgraded it to Buy in Cabot Dividend Investor.

In our final issue of 2023, we try and capitalize on the red-hot, Fed-fueled (for once) market by adding a growth play that is resurgent in a post-Covid world. It’s a brand-new recommendation from Mike Cintolo in Cabot Top Ten Trader. It should be a nice addition to a Stock of the Week portfolio that has plenty of shiny objects as we close out the year. Enjoy – and happy holidays!

The market continues to strengthen, and thus you should become more heavily invested; it’s possible this strength could run to the end of the year!

But predictions aren’t necessary; what’s necessary is listening to your stocks and acting accordingly.



Today, doing exactly that leads us to sell one stock, so that we can make room for today’s recommendation, a company that’s built one of the biggest brands in the world.

Overall, nothing has changed yet with the major evidence out there, but we continue to think a bottom-building process is playing out in decent fashion so far: Last week, the major indexes sank below their January lows on news of the Russian invasion, but then rallied hugely to close the week all while showing small positive divergences in the broad market (fewer stocks hitting new lows on the Nasdaq, fewer below their 200-day lines, etc.). Moreover, there’s little doubt that sentiment is getting pretty bearish, and believe it or not the intermediate-term trend of growth funds actually isn’t far from a green light. Thus, there are some positives as it attempts to etch a low area to this three-plus-month downturn, so we’re nudging up our Market Monitor, but we need to see the market build on these baby steps before thinking the downtrend may be over.



This week’s list is very heavy on the commodity complex, as that’s clearly where the big money has been flowing. Our Top Pick is a natural gas-heavy play with as good a cash flow story as there is.

If you had written a script of what you wanted to see from the market a few weeks back, most of that has come true; simply put, the evidence continues to improve. Now, of course, things aren’t perfect—we’re seeing a bit of rotation out there that could continue to play out, and there are some potential leaders that are getting wobbly; throw in the fact people are feeling more comfortable and we’re not advising anyone to go hog wild. But with the evidence continuing to impress, we’ll bump our Market Monitor up another notch to a level 7.

This week’s list is heavy on medical and infrastructure-type names, with a smattering of other areas, too. Our Top Pick won’t be the fastest horse but should be a straight-on play on what is looking like a building, construction and infrastructure boom.

It’s still a narrow rally at this point, but we are seeing more names begin to pop higher, whether on earnings or some other news, with some shakeouts-and-recoveries, some earnings gaps that see immediate follow-through and more names setting up. (We don’t hate the selloff in defensive stocks, either.) It’s not definitive yet, but we will nudge the Market Monitor up to a level 5 and see how it goes.

Growth names make another good showing this week, with a variety of sectors (outside of retail, which has been rough) represented. Our Top Pick is a big-cap chip name that has stormed back after a spring correction.