Search

This was a good week for Explorer stocks with Agnico Eagle Mines (AEM) up 6.2%, Alibaba (BABA) up 5.9%, Banco Santander (SAN) shares rising 6.2%, and BYD (BYDDY) shares surging 8.1% this week.

It was a painful process with America’s most valuable ally, but a trade/investment deal was finally reached with Japan, which buoyed markets. Frameworks for deals with the Philippines and Indonesia were also agreed to, sending the S&P 500 to a new high. The market seems mostly concerned with China. The reason is that annual S&P 500 revenue from China is $1.2 trillion, roughly four times the U.S. trade deficit with China.

The market rebound from its lows has been impressive as the unprecedented amount of stimulus injected by the Fed and Congress has overwhelmed any forward-looking concerns about the real economy.

The key now is to build, day by day, a more normal trading pattern. Cabot Global Stocks Explorer positions have kept pace with the market with outlier Virgin Galactic (SPCE) coming back 75% in two weeks. Our emerging markets (EEM) timer needs a bit more time to come out of its negative position. Today’s new recommendation is a high-quality, debt-free robot maker that is trading at close to a 10-year low.

The markets continue to lack direction and are buffeted by uncertainty regarding tariffs, taxes and spending, debt and conflict, but yesterday came to life as concerns over some of these risks were mollified. Nevertheless, broadening and diversifying your portfolio makes sense to maintain an objective of growth while also being mindful of protecting your wealth.

This brings us to gold - and today’s recommendation.

While Nvidia (NVDA) has pulled back more than 20% over the past two weeks, our conservative AI play IBM (IBM) has tacked on 40 points over the same period- hitting an all-time high early this week.

Cloudflare (NET) shares were up again this week and are now up 28% in 2025 to reach 140.

Dutch Bros (BROS) shares rose 8.5% this week and have surged 23% so far in 2025.

Growth stocks, led by the Magnificent Seven, have again carried the market this year.

The Mag. 7 – the clever name for big-tech behemoths Amazon (AMZN), Apple (AAPL), Google (GOOG), Meta (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA) – are up an average of 22% this year. Because those seven companies account for more than a third of the entire S&P 500, they’ve carried the index to a solid 16.5% gain year to date. The Equal Weight S&P 500 index, which equally weighs each of the 500 stocks that comprise the benchmark index, is up a mere 8.5% and has barely budged since the Fourth of July. For most stocks, the entirety of this year’s rally occurred during the post-Liberation Day run-up from the second half of April through early July.

This month’s candidate is another software stock—but not a high flyer. Rather, this company is still scooting just below the radar, and trades at a big discount to most of its peers. When you value it based on growth, it’s downright cheap—but valuation isn’t why we’re buying it.

January is living up to its volatile reputation but there’s no doubt it’s begun to improve—the intermediate-term trend, which was negative for most everything out there, is back to neutral; the broad market is showing some rapid, intriguing improvement; and individual stocks have improved their standing, with some popping to new highs. To be clear, this isn’t a buying panic, but after a few weeks of tedious action that has brought sentiment down, we’re OK with gradually extending your line while remaining nimble. We’ll up our Market Monitor to a level 7 today.

This week’s list is a mixed bag, with everything from growth to turnarounds to commodity names. Our Top Pick looks like one of the leaders of a new group move after being in the doghouse for a couple of years. Try to get in on dips.

Thank you for subscribing to the Cabot Undervalued Stocks Advisor. We hope you enjoy reading the March 2021 issue.

As value investors, we follow the goings-on at Berkshire Hathaway, and comment briefly on its earnings and Warren Buffett’s annual shareholder letter, released this past Saturday. Your chief analyst owns some Berkshire shares (the lower-priced Class B shares), but isn’t a full-fledged Berkshire “groupie.”



We also discuss our new Buy recommendation – British insurance company Aviva, Plc (AVVIY). This company is emerging from a period of global sprawl and weak leadership, led by a new and impressive CEO.



Currently-recommended Dow (DOW) is a strong beneficiary of the global economic re-opening, with higher earnings likely ahead, so we are raising our price target to reflect this still-undervalued stock’s potential.



Please feel free to send me your questions and comments. This newsletter is written for you and the best way to get more out of the letter is to let me know what you are looking for.



I’m best reachable at Bruce@CabotWealth.com. I’ll do my best to respond as quickly as possible.



Thanks!

Artificial intelligence is everywhere these days, from your email spam filters to customer service chatbots to phone systems, but does it belong in your portfolio? This month, we’ll learn more about the growing use of AI in day-to-day life, how it operates, how companies are leveraging artificial intelligence to manage investments, and whether you should trust these automated tools to make (or help you make) investing decisions.

Wondering how to invest in stocks when interest rates are hiked again? The fact that we know it’s coming is why you shouldn’t worry.

We at Cabot Wealth have had great success over the years using the following three simple-yet-proven stock picking criteria.

The market we have right now is the strongest in years, and that’s what we need for the next star to emerge.

Most financial resolutions last about week into the New Year. But by taking these five easy, small steps, you can achieve better investing success in 2017.

Chief Analyst Roy Ward answers some common subscriber questions.

What is Dogecoin? It’s a joke, and it could make you rich. Or it might just be a fun and whimsical investment.

Chasing high yields can be dangerous. But these five stocks with dividends over 5 percent have more sustainable yields with lots of profit potential.

Here’s the list of 10 Dividend-Paying Companies that I believe will perform well during the next year and beyond.

Any income investor should know how to reinvest dividends. Whether you should depends on what you’re looking for as an income investor.

The FAANGs are the biggest growth stocks on the market today. What are the companies most likely to be the next FAANG stocks?

Want to know how to sell winning stocks at a profit when they start to go south? Here are three rules to follow before making a rash decision.