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Despite a frantic week of heavy sector rotation, the indexes managed to hang in there. Essentially, lofty tech valuations in the AI and growth spaces are now in question, and that hot money poured into defensive sectors. In the end, the S&P 500 eked out a +0.08% gain, the Dow rose +0.34%, and the Nasdaq Composite lost -0.45% last week.

It’s ugly out there, as virtually everything has been caught up in the merciless selling the last couple weeks. As a result, we are parting ways with three more stocks this week before their losses become even bigger. But we’re not completely battening down the hatches: Today’s addition to the Stock of the Week portfolio is a small-cap growth stock courtesy of Cabot Early Opportunities Chief Analyst Tyler Laundon. It’s not a household name, but it’s growing fast by taking full advantage of the return to relative normalcy in a post-Covid world.

Details inside.

The market continues to retrace its steps back toward mid-summer lows, but not all stocks are suffering. Renewable energy names, including several in the Stock of the Week portfolio, are holding up quite well thanks in large part to lingering good vibes from the passage of the Inflation Reduction Act. So we’re not fighting the tape – today, we’re adding another clean energy stock to the portfolio, recommended by our Greentech expert, Brendan Coffey.

Details inside.

Not a lot is happening in the market right now, but soon a lot will happen.


Tech earnings are just around the corner, which should help reveal whether the Magnificent Seven mega-cap tech stocks are worth their current prices. Apple (AAPL) shareholders nervously wait for signs that revenue growth isn’t truly stalled even though the company’s new product offerings don’t quite have the appeal as earlier ones. Broadly, investors of all types wonder how consumer and industrial goods producers will fare, given rising pressures from inflation, inventory de-stocking, global outlook worries and student loan repayments. Bank investors await results from Bank of America (BAC) and other banks to glean whether we are headed into a second round of deposit runs. Stocks are not cheap, especially in a world of 5-6% Treasury yields … how much, if at all, will this matter?

I hope everyone had a wonderful Fourth of July! On Wall Street, the celebration continues, as stocks have stretched to new 2023 highs as we enter the second half of the year. Several of our stocks are hitting new 52-week or even all-time highs, as the bull market is no longer just a mega-cap tech or AI stocks phenomenon, with many sectors and subsectors now along for the ride. So today, we add a cyclical stock that has been acting like a growth stock – so much so that it caught the attention of Mike Cintolo, who recommended it to his Cabot Top Ten Trader readers.

It’s tough to make money in a sideways market like this one. But soon enough, a breakout is coming – history tells us that this bear market (18 months old in the Nasdaq) is on borrowed time. When it does, it will happen fast, and that’s when the real money is made – at the onset of a new bull market. To be prepared for its eventual arrival, we maintain a full 20-stock portfolio. And today, we add a familiar growth stock that got pummeled last year but is on the fast track to recovery in 2023. It’s a new recommendation from Mike Cintolo in his Cabot Top Ten Trader advisory.

Details inside.

Cannabis is a highly politicized sector because it is extensively regulated.

The political news has been very good for cannabis. But cannabis investors have been slow to recognize this.

A late-July Fox News poll showed that Vice President Kamila Harris has caught up to and surpassed Donald Trump in five key swing states.

Cannabis stocks should have advanced on the news. Not only is Harris a better cannabis advocate than President Joe Biden, she’d obviously be more favorable to the sector than Trump.

This feels like one of those markets that you’re not sure you should trust given how volatile it was in February. But the combination of revenue growth, earnings growth and decent charts, especially among growth stocks, suggests it’s best not to try to predict too far into the future. For now, the evidence in front of us favors the bulls.

To say that we live in historic times would be an understatement. We’ve all been shaken by more earth-shaking news in just the past few months than we’ve seen in the prior decade. There’s been the takeover of Fannie Mae and Freddie Mac, the disappearance of Lehman Brothers, Bear Stearns, Washington Mutual and Wachovia, the TARP rescue plan and now the potential bailout of the Detroit automakers. Oh, and did we mention hedge fund redemptions and failures, and now commercial real estate problems?!? And the market, of course, has reacted.

Rather than give the same old big advice (buy quality stocks on reasonable pullbacks, let your winners run, cut your losers short, and don’t try to go against the trend of the market) I’m going to recommend three small changes that you might actually be able to implement. And a successful small change is much better for you (both financially and emotionally) than a big change that you can’t make happen.

After trading as low as 1139 on May 12 the S&P 600 Small Cap Index has staged a modest recovery, crossing back above the January and February lows of around 1230 two weeks ago.

Under normal market conditions growth investors like to get pulled into strong stocks and buy them as they head higher. This is anything but a normal market, however!

Cree Inc. (CREE) is a leader in the production of light emitting diodes.