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Stocks finally took on some water last week, though the damage was minimal. Under the surface, there are a few more cracks, with the number of stocks hitting 52-week lows on the rise. Still, there’s no cause for concern yet. Just in case there is a more extended pullback in the offing, however, today we add a “boring” insurance play, but one that pays a high dividend and whose share price has been on steady uptick for the last couple months. It’s a recommendation from Tom Hutchinson to his Cabot Dividend Investor readers.

Details inside.

We have a wonderful library of investing books here in the Cabot offices and refer to them very often. Here are some of our favorites.

The market is a bit of a mess, but the selloff has created opportunities to pick up shares in high-growth small- cap names at what seems like extremely attractive prices.





Today’s recommendation is one of those names. It’s a marketplace company that is revolutionizing the outdated industrial manufacturing industry.





While the stock hasn’t been immune to bouts of market volatility it has been far more stable lately than most other high-growth names. It’s up over the last three weeks! And it offers investors exposure to an industry that is seen rebounding in 2022 and 2023.





Enjoy!

We’ve seen before how Trump’s shoot-from-the-hip approach to foreign policy has marked a significant departure from that of his predecessors. But clearly this latest exchange is different. Understandably, the market reacted negatively to the very mention of military conflict with North Korea.

Last Monday I published a column on medical insurance, health care, obesity and swimming ... and tried to wrap it all up in the mantle of “personal responsibility.” The quantity and quality of your feedback was impressive.

The S&P 500 and Explorer stocks are in an uptrend in November as investors bet that the Federal Reserve’s interest rate hikes are done for now and that inflation will moderate without a recession. In addition, with most S&P 500 companies having reported third-quarter results, more than 80% have beaten analyst expectations.

With the investing climate improving, today we add two new positions to the portfolio. Enjoy, and Happy Thanksgiving!

“The whole world is under-followed relative to the Magnificent Seven…Whether you’re looking at a place like Japan… emerging markets… commodity sectors… there’s really a ton of opportunities that people just refuse to look at.”

-Richard Bernstein, CEO and CIO, RBAdvisors

In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Centuri Holdings (CTRI), GE Aerospace (GE), Intel (INTC), Pan American Silver (PAAS) and Paramount Global (PARA).

Intel (INTC) is reportedly mulling a sales of its network and edge businesses as part of an ongoing focus on streamlining the company.

Pan American Silver (PAAS) stands to benefit from recent gold-to-silver ratio readings.

Short selling is complicated and risky, and we don’t recommend it for inexperienced investors, but those who consider it should keep the following strategies in mind.

This week’s leading issue is the China virus, which is impacting markets.
We will need to keep an eye on this breaking issue. Still, Virgin Galactic jumped another 14% yesterday and is up over 80% in the last month.

Our emerging market timer is clearly positive and today’s recommendation is an emerging country that is the overlooked big winner from the two recent trade deals. It is in a nice uptrend and has fuel to burn going forward, backed by several positive trends.

Amid all the noise, you may have missed that Microsoft (MSFT) is investing $5.4 billion over the next two years to expand its existing data center capacity in Canada. The investment is primarily aimed at strengthening Canada’s AI and cloud infrastructure in Toronto and Quebec City.

Microsoft has pledged to keep Canadian data on Canadian soil and is launching a new “Threat Intelligence Hub” in Ottawa. This hub will allow experts to work closely with the Canadian government on cybersecurity threat monitoring.

This is a big win for Canada and is likely tied to one of the country’s secret weapons: cheap, dependable hydro power. This is where we go for this week’s new recommendation.

As the coronavirus plagues China, Apple’s iPhone and AirPod production is at risk - and so is Apple stock. Rare earth stocks are the best way to hedge it.

A big year at the box office has Disney growing like it hasn’t in more than a decade. But Disney+ is the reason DIS stock is my top pick for 2020.

Nothing in stock market history quite resembles the current coronavirus crash and recovery. So what should investors expect next?

The 45% overnight drop-off in LinkedIn (LNKD) stock stands as a cautionary tale for other growth stocks with flimsy fundamentals.

A long-anticipated stock market collapse has arrived. Here’s why you should not only not fear it - you should embrace it.

The huge run-up in Facebook stock these last few years has paralleled the major growth in the company’s mobile ad sales. It’s not a mere coincidence.

One small-cap growth stock stands to benefit from the ongoing boom in the housing industry. And right now, it’s extremely undervalued.