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Explorer stocks were all up this past week with the exception of Ford (F) as inflation numbers out this morning are expected to show consumer-price inflation picked up again in January, to an annual pace of 7.2%.

This week’s Update is being published on Wednesday due to the Thanksgiving holiday in the United States. The December edition of the Cabot Turnaround Letter will be published next Wednesday, December 1.

Microsoft (MSFT) bid $45 billion to buy Yahoo! (YHOO) back on February 1. My investment perspective on these companies is two-fold. First, every investor in America knows these companies. It’s going to be very hard to beat the market by investing in them. Second, those companies are going down the same road traveled by IBM decades ago.

I recently visited Ruth’s Chris steakhouse in Boston for a wonderful meal. Despite the stigma of being a chain, every meal has been absolutely terrific. Ruth’s Chris (RUTH) just came public in 2005, but has since slid from the mid 20s to 6 1/2. Revenues have grown fairly consistently, but earnings were cut in half during the fourth quarter, and projected to shrink some more this year. The stock just hit a new low today! Thus, I think it’s a good idea for any steak lover to visit one of the premier steakhouses in your area every couple of months. It’s a real treat! But when it comes to investing, the message is clear: Enjoy the steak, but avoid the stocks.

The big news affecting the market this week is the upward trend in coronavirus cases in some states and the resulting concern that an economic rebound will be curbed sooner than hoped.

I’m not sure who coined the phrase “Romance Stock.” But it’s a phrase we’ve long found useful at Cabot, because it provides a model that helps us understand how stocks behave.

The S&P 500 was up 20% in the second quarter. It was the best quarter for the market in decades. That’s what the headlines say. But they are a little misleading. The market hit a recent high on June 8th and has since pulled back a little and moved sideways.

Our Emerging Markets Timer is still negative, but it’s good to see EEM perk above its (still downtrending) 25-day line today. A good day or two from here could flip the intermediate-term trend.

With a new year right around the corner, today I’m going to break down one of my favorite options investment strategies for profiting in almost any market.

A quote by U.K. Prime Minister Benjamin Disraeli helped shape my options selling strategies early in my career, here’s how it affected me and how to use those strategies now.

2024 was a rough year for cannabis investors, but 2025 could be much better. Here are my top eight predictions for the cannabis sector for the year ahead.

Cannabis stocks are getting sold down as if the industry has no future.

This makes no sense, but there is a good explanation. Traders and investors bought the group heavily on expectations that cannabis sector banking reform would be passed in Congress by year’s end. The AdvisorShares Pure U.S. Cannabis (MSOS) exchange-traded fund (ETF) saw five to ten times normal volume on four days in early December, following two months of accumulation.

Following another week of hotter-than-expected inflation data and hawkish Fed speak, the leading indexes had their worst week of 2023. The S&P 500 fell 2.75%, the Dow lost 3%, and the Nasdaq declined by another 3.3%.

Following another week of hotter-than-expected inflation data and hawkish Fed speak, the leading indexes had their worst week of 2023. The S&P 500 fell 2.75%, the Dow lost 3%, and the Nasdaq declined by another 3.3%.

This week, we comment on the full earnings report from Volkswagen, which wraps up this earnings season. Walgreens Boots Alliance (WBA) is an off-cycle company and reports on March 28.

Rather than overcomplicate your investing strategy, use time-tested methods and boost your returns by pairing that with my favorite options strategy.

The market was looking pretty good through last week. Then this week, with no meaningful progress on the debt ceiling, momentum has deteriorated.


Yesterday afternoon U.S. House Speaker McCarthy was on a roll, saying that things are going a little better, that he won’t put a bill on the floor that spends more than last year and that the President is realizing he has to spend less.



JPMorgan says they put the odds of no debt ceiling deal by early June at around 25% and rising.

The week has brought some impressive rebounds, and I’m putting two stocks back on Buy today. That brings our total number of Buy-rated positions to six (plus our bond ladder), a slightly more constructive stance than we’ve taken in recent weeks.

We’ve been writing about some of the market’s yellow flags for the past two or three weeks—despite a much-ballyhooed upmove in the Dow, growth stocks have been hit and miss (thankfully we sold a decent amount of stocks before this week).