Search

Today I’m bringing you a special Q&A with Cabot Small-Cap Confidential Editor Thomas Garrity. Earlier this week, Timothy Lutts told you that small-cap stocks are leading the current market advance: while the Dow Industrials are up 26% over the past 13 weeks, the S&P 600 Small-Cap 600 Index is up a whopping 39%. Even better, stocks currently recommended by Cabot Small-Cap Confidential are up 49% in the past 13 weeks. The Q&A should help you better understand why small-cap stocks are leading the market, what you should be looking for now in individual stocks and where Tom sees the market and small-cap stocks going in the second half of 2009. Enjoy!

Here’s one of the biggest differences between successful and ineffective traders: The market can change its tune in a heartbeat but ineffective traders cannot...or at least they refuse to try. These traders think everything has to make sense, and rapid changes in direction rarely make sense, so they fight the new trend.

As Mike Cintolo, Chief Analyst of Cabot Growth Investor and Cabot Top Ten Trader always says, “you shouldn’t fight the tape.” The markets are battling it out these days, trying to find a bottom. The constant news cycle of Russia-Ukraine, rising rates (up 0.5% last week) and increasing inflation are causing a severe case of market indigestion and volatility.



What’s an investor to do? As I’ve been saying for the past 6 or so months, judicious investing is the key. While most sectors (except Energy and Utilities) and the majority of equities, are down for 2022, there are still pockets of ideas worth investigating, including some defensive moves.



With that being said, I think investors should be keeping some cash on the sidelines, as when this market shows signs of a long-term turn, there will be plentiful bargains to be had.

The best dividend stocks can be hard to find. Here is my criteria for how I pick dividend stocks for my Cabot Dividend Investor advisory.

A famed economist just outlined his “Roaring 2020s” scenario for the U.S. economy, and this stock market trend is powering it.

The market has likely not bottomed yet. The current rally will unlikely be sufficient to drive us out of this bear market ahead of continued high inflation and likely recession in the months ahead.

However, while the market indexes may have further downside, one area of the market may well have already bottomed, namely interest rate-sensitive stocks.

Previously buoyant defensive stocks got clobbered as interest rates spiked to the highest levels in 15 years. But the evidence is overwhelming that the economy is likely headed toward recession in the months ahead. Recessions put downward pressure on interest rates. As the economy worsens and inflation declines, rates are likely to move lower, negating most of the damage done to conservative dividend payers.

There are powerful reasons to believe that interest rate-sensitive stocks may have already bottomed. In this issue, I highlight one of the very best utilities on the market. It’s near the 52-week low after an overdone selloff and should be highly resilient in a recession.

Stocks are turning distinctly more bearish in the near term as slower growth in China hits a market that was already teetering in anticipation of a more aggressive Fed.
But the selloff in the indexes doesn’t reflect all stocks. Some stocks have more downside left. Others will likely hold their own even if the market keeps falling. And still other stocks have already been oversold. These stocks should have less downside from here than the overall market, and recover much more quickly when the selling abates.


In this issue, I identify two oversold stocks in the portfolio. These are stocks that have already been crushed and sell at vastly reduced prices despite continuing strong earnings growth. While these stocks may fall further in the weeks ahead if the market gets uglier, I believe they both sell at deep discounts compared to where their prices are likely to be later in the year.

The overall market may have a challenging year as it grapples with inflation and uncertainty about the Fed tightening.
While most companies struggle, energy and financial stocks actually thrive with inflation and rising interest rates. But there are also lesser-known areas that are also benefitting from this current bend in the road.


In this issue, I highlight a company from the shipping sector. The industry had struggled for the last decade. But the current environment is much more hospitable. Shipping rates have soared in the pandemic recovery. And these rates are likely to stay high in one particular area, container shipping.

“Inverse Cramer” became a running joke online during the meme stock craze. Now a fund has filed an initial prospectus to make the joke investable.

Giving back half of a bull run may seem like bad news, but here’s why it may actually signal the end of the bear market.

New technologies often require new inputs, and for Greentech to flourish we’ll need new types of semiconductors. These 3 chip stocks are leading the way.

It’s often said that history doesn’t repeat itself, but it does rhyme. So what period of stock market history does 2023 rhyme with?

Preferred stocks can be a great way for investors to secure fixed-rate divdends while benefitting from a company’s growth. Below, Richard Moroney, editor of Dow Theory Forecasts, explains why preferreds can be the income investor’s best friend. “When we profiled preferred stocks March 9, 2009, we wrote that ‘the broad...

Because the year and decade is winding to a close, and because I am more than just a studly stock picker (I also have a softer side that comes out around the holidays), here’s a poem I put together ... a decade in review. Hope you enjoy!

Retracement, when stocks give back part of their gains, may seem like a bearish indicator but it’s actually a totally healthy bullish move.

My notes and investing ideas from 3 days at The MoneyShow/Las Vegas.

Like with any car, it’s easy to crash a Tesla. How to invest in Tesla in the midst of this downward-spiraling market seems more complicated. But it’s not.

I hope you enjoyed your Thanksgiving and were surrounded by family, friends and good food. Now it’s Black Friday, a sort of holiday of its own and the busiest shopping day of the year. I’m not willing to brave a crowd for a deal, so I greatly prefer the former...

If you have money to invest and want Tesla-like profits, you should invest in the next Tesla. How do you identify that stock? Here’s my list.