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SanDisk (SNDK), a recent spin-off from Western Digital (WDC), has doubled in the last month and 10x’ed in less than a year. Here’s what’s behind the move.

Sell Credo Tech (CRDO) and Viking Holdings (VIK)

There’s been plenty of drama over the last week, but small caps don’t seem to care. Both the S&P 600 and the Russell 2000 are making new all-time highs.

FactSet reported this morning that the Russell 2000 has outperformed the S&P 500 Index every session this year. That’s impressive. Let’s look more closely at the S&P 600 Index because I have sector data for it. Impressively, through mid-day Thursday, every small-cap sector is outperforming its large-cap counterpart YTD. The strongest small-cap sectors are materials (+14.4%), energy (+13.4%), industrials (+12.3%), and tech (+11.7%). The weakest, utilities, financials and healthcare, are all up in the 4.4% to 5.3% range.

As a whole, the S&P 600 is up 9.2% while the S&P 500 is up just 1.2% YTD.

It’s been a volatile week, starting out with Monday’s slide on the Greenland-related tariff threat, only to see a decent rebound after that. Overall, coming into today, the major indexes haven’t done much, with some broader indexes up a bit but most others are flat to down a smidge.

Coming off record highs early last week, U.S. equities drifted lower as the week progressed as the first week of the corporate earnings season unfolded. And despite upbeat earnings from select tech and semiconductor names, profit-taking set in across large caps late in the week and kept the major averages slightly underwater by Friday’s close. Small caps bucked the broader trend, continuing their early-year leadership as the Russell 2000 extended gains on optimism around economic resilience and rotation out of mega caps. For the week, the S&P 500 lost 0.4%, the Dow fell 0.3%, and the Nasdaq Composite declined by 0.7%.

As I do from time to time around the major holidays, I spent much of the weekend hanging with family and traveling. That means this week’s Monday Week in Review will be focused on our open positions.

Of note, I am working the full week, outside of Thursday, when the market will be closed for New Year’s.

For nearly two decades, Michael Burry has been one of the most vocal pessimists on Wall Street, and his decision to shutter his hedge fund offers an instructive lesson.

Go beyond rebalancing with this year-end portfolio review checklist. Discover three under-the-radar risks that can quietly undermine your investments.

It was another stellar year for the market. The S&P is up between 17% and 18% with just a couple of trading days left. After two years of 20%-plus returns in 2023 and 2024, the S&P has put together the best three-year run this century.

Cannabis stocks got a jolt of life in the lead-up to President Trump’s rescheduling push and quickly reversed course. But the sector still has room for growth.

*Note: Due to the New Year’s holiday, there will be no Cabot Dividend Investor update next Wednesday, December 31. I will be back with our next weekly update on Wednesday, January 7. Have a safe and happy holiday season!

Another strong year in the market is closing out. The S&P 500 is up over 17% for 2025 with about a week to go. This follows two straight years of 20%-plus returns for the market in 2023 and 2024. That’s the best three-year run this century.

Of course, the upside has been overwhelming due to technology. Without that sector, market returns would be rather lame. Now that technology is sputtering, what can we expect in 2026?

Santa Claus is coming to town, but is a Santa Claus Rally coming to Wall Street? Here’s why it looks promising this year (and why you shouldn’t worry if Santa is a no-show).

The November sell-off in growth stocks painted a pretty clear picture of which stocks were going to stay down (eggs) and which would bounce back and lead the charge (tennis balls), and two names stand out.

Despite a mid-week wobble in tech (especially AI stocks), the bulls stepped up Thursday and Friday, and by week’s end the indexes finished mostly mixed. The S&P 500 gained 0.1%, the Dow lost 0.7%, the Nasdaq rose by 0.5% and the Russell fell 0.9%.

In our final issue of 2025, we close out what has been another extremely profitable year for the market and the Stock of the Week portfolio by adding one more risk-on stock that will hopefully take flight in the new year. It’s a mid-cap nuclear energy play that was recently recommended by Tyler Laundon to his Cabot Early Opportunities audience. We will be back with our next issue in two weeks, on January 5, 2026. In the meantime, enjoy today’s issue – and Happy Holidays!

Before diving into the market, it pays to test the waters, and these signs are telling me that it’s all clear … for now.

2025 has been one of the strongest IPO markets in recent memory, and if the pace of new issues stays strong, two AI companies could push it over the top.

As I do from time to time around the major holidays, I spent much of the weekend hanging with family and traveling. That means this week’s Monday Week in Review will be focused on our open positions.

Of note, I am working the full week, outside of Thursday, when the market will be closed for New Year’s.

First and foremost, all of us here at Cabot wish you and your family a Merry Christmas, Happy Holidays and a prosperous New Year. Our offices will close early today and be closed tomorrow, but we’ll be back at it next week.

As for the evidence, it remains in a similar place as it has been: Market-wide, most of what we look at is positive, and bigger picture, the odds continue to favor the major indexes having solid upside in the months ahead. That said, growth stocks and funds are much more mixed, and near term, some crosscurrents are likely due to the calendar and elevated sentiment. All in all, with growth stocks, we’re continuing to take it step-by-step, emphasizing the positive while pruning names that are weak. Tonight we’re filling out our stake in one recent purchase, leaving us with 45% on the sideline.