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We preach stock market optimism here at Cabot, but it’s worthwhile to take a look at the bigger picture and consider what could go wrong in the rest of 2025.

What do you do when two “smart money” signals are in conflict? Well with insiders selling Constellation Brands (STZ) and Warren Buffett buying, it’s up to us as investors to decide.

The market has leveled off since the huge recovery from the tariff Armageddon fears. And now, who knows.

The sticky issue to start the week is increasing trade tensions with China. A war of words is escalating between the two governments and threats are being made by both sides. It is being reported that President Trump will speak with Chinese President Xi today or later this week. Hopefully the two leaders will bring down the temperature.

As the market panicked in the midst of a correction, five indicators signaled that it was time to buy. Here are those signals, and what I’m buying now.

In a bad market, good stocks stand out like a sore thumb, and these three stocks all look solid coming out of April’s market meltdown.

The major indexes are all up this week as the headlines continued to hit the wires (Nvidia’s earnings, renewed U.S.-China trade tension), and the big-cap indexes briefly nosed to new recovery highs yesterday morning. But overall, we still see the market as in the midst of a consolidation phase, with most indexes, sectors and stocks catching their breath after the prior run-up.

Growth stocks have quickly snapped back from the tariff-induced selloff, but value stocks are still outperforming them in 2025 and may be poised to lead the rally from here.

Coming off a losing week two weeks ago, the indexes mostly regained that lost ground last week as the S&P 500 gained 1.9%, the Dow advanced 1.6% and the Nasdaq rallied 2%.

The market has become a bit stagnant and boring. After the last few months we’ve had, boring is good. So today, we lean into the boring theme by adding a “boring” stock to the portfolio. It’s a mid-cap insurance company that Tyler Laundon recommended to his Cabot Early Opportunities audience last month. It may be boring, but like the market, it has plenty of upside in the near term.

Details inside.

Sell a Quarter Position in Dollar Tree (DLTR)

Coming off a losing week two weeks ago, the indexes mostly regained that lost ground last week as the S&P 500 gained 1.9%, the Dow advanced 1.6% and the Nasdaq rallied 2%.

The U.S.-China trade war is dominating the investment landscape. But if you avoid certain big-name multinational stocks, it shouldn’t impact your portfolio.

Hannan management was out with two updates this morning.

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) and Paramount Global (PARA).

GE Aerospace (GE) stands to benefit from the recent legal challenge to the White House’s tariffs.

Everything You Ever Wanted to Know About Tariffs but Were Afraid to Ask

Coming off a losing week two weeks ago, the indexes mostly regained that lost ground last week as the S&P 500 gained 1.9%, the Dow advanced 1.6% and the Nasdaq rallied 2%.