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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.

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).

As the cost of living rises, no sector has struggled more visibly than fast food, and Wendy’s (WEN) is the poster child for this phenomenon.

If there was a dominant investment theme for the Cabot Turnaround Letter in 2025, it was the focus on defensiveness, in which we showed a penchant for companies in the consumer staples arena. This, I believe, was—and still is, from a long-term perspective—justified in view of the many headwinds faced by the U.S. economy over the last 12 months.

Now that we’re about to enter a new year, however, the economic winds have started to shift in a more favorable direction. With the Fed’s embrace of a looser monetary policy, sectors that were out of favor or not very strong in 2025 are poised to become better performers in 2026. I’m referring particularly to some of the more economically sensitive industries within the broader consumer discretionary sector.

Housekeeping: We’re sending out this update a day ahead of time, given tomorrow’s holiday. We hope you have a great end to the holiday season and, of course, a healthy and prosperous new year. Our office will be open Friday, and we’ll be back at it in full next week. Cheers!

WHAT TO DO NOW: Stay flexible. The market’s overall evidence is positive but not powerful, though growth stocks continue to lag, with our growth measures (such as the Growth Tides and Aggression Index) neutral-ish here. We expect volatility over the next few days as the calendar flips, which could provide some opportunities. For now, with most names we own or watch marking time, we’ll hold what we have and see what comes as we hit January. We have no changes tonight.

Housekeeping: There’s no Top Ten issue today, as it’s the second of our two weeks “off” all year—though we are sending this Movers & Shakers update in its place so you’re up to date on our latest thoughts. We’ll likely have another (albeit briefer) M&S this Friday (January 2) and then get back to our regular schedule next Monday (January 5), with your next issue of Top Ten. Most important—we hope you and your family have a happy, healthy and prosperous new year.

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The market remains largely in the same position it has for the past two or three weeks—positive, but it depends where you look, with many of the popular AI and other stocks still hacking around (though most are doing so within overall uptrends), while other areas are a bit more vibrant.

A look back at the uncertainty that dominated 2025 and a look ahead at what’s to come in 2026.

The Fed may not be calling its “reserve management purchases” Quantitative Easing (QE), but it should translate to more asset price inflation just the same.

Copper prices are surging as global demand accelerates. Discover two copper mining stocks positioned to benefit from the red metal’s breakout.

Cannabis stocks sold off after President Trump’s Executive Order on rescheduling, some of the best news in decades. Here are seven reasons they’re still a buy.

Warren Buffett may no longer be at the helm of Berkshire, but his “Buffett Indicator” is flashing warning signs for investors.

Sell Palomar (PLMR)

High stock prices and rising uncertainty call for stocks that can thrive in almost any market environment, and that spells a new golden age for midstream energy companies.

Tariff uncertainty is back. But this time it’s just keeping stocks from going higher, not dragging the market lower.

The administration is currently threatening to enforce 30% tariffs on Mexico and the European Union (EU) starting on August 1. However, investors perceive a strong chance that President Trump will either back off the threat or make deals. Meanwhile, the S&P 500 continues to hover right near the high.

I think a 5% market pullback is coming, perhaps in the next two months. When it comes, it could be a good thing.