Blood in the Streets … Time to Buy?
Stock Market Video
Don't Cry
In Case You Missed It
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Taking on the title of Editor is always a little dizzying for
someone who thinks of himself primarily as a writer. I've been at
Cabot for more than seven years, and I've been the Editor of the
Cabot China & Emerging Markets Report
for six of those years. Being called the Editor means that I take
responsibility for seeing that it gets written and for everything
that it says. And that's the way it will work in my new additional
role as editor of
Cabot Wealth Advisory
as well.
If you have any questions, comments, criticisms, quibbles or
kudos-and I hope for lots of each-I hope you will put your hands to
the keyboard and send them along. I will read everything you write,
and will respond whenever it seems called for. Let me hear from
you.
Today, while the New England summer is letting us know that it will
start when it darned well pleases, I've been thinking about the
difference between the weather and the stock market.
When the sun comes out in this region and the thermometer tops 80º,
it takes no time at all for New Englanders to head for the beach.
Even if it's been cloudy for so many weeks that webs are growing
between their toes, people in New England know that they'd better
slap on the sunblock and look for a spot on the sand for towels and
coolers.
But it's a little different with rainy stretches in the stock
market. Even after the major indexes have shown some good strength
and have climbed back into convincing uptrends, many investors
continue to sit on the sidelines. And many of them will continue to
sit while loads of money is being made by people who are climbing
back on the bandwagon.
The real shame is that some will persist in shunning the market
until the rally has gone on for so long that everyone is happy and
totally optimistic about stock investing. Maybe there will even be
a cover story in Time magazine about the new, improved stock
market.
So they finally jump into the market … just as it begins to peak,
stalls out and starts the correction process that will wipe out all
late arrivers, which is what it always does.
Some legendary investor-sources suggest that it was Baron
Rothschild in the days following the defeat of Napoleon at the
Battle of Waterloo-said that the time to buy is when there's blood
in the streets.
If you take that to mean that it's a good time to buy when assets
are extremely oversold, it's probably true. But what's true for a
massively wealthy banking family isn't necessarily true for
individual investors.
And if you take the quote to mean that you should try to buy the
market at the bottom, then it's not only false, it's impossible!
If you would like to know how to make the transition out of a bear
market with confidence, I have a suggestion. And it should come as
no surprise to you that it involves a Cabot newsletter.
The suggestion is based on the fact that the
Cabot Market Letter
has 41 years of experience getting investors out of bear markets
and into cash, and then out of cash and back into bull markets. The
method has nothing to do with intuition, economic predictions or
the Magic Eight Ball.
The
Cabot Market Letter's
Cabot Trend Lines, Cabot Tides and the Two-Second Indicator have
been honed and refined to make sure you never, repeat NEVER, miss a
major bull move and never stay heavily invested during a major bear
move.
Bull markets are a great phenomenon; they make you feel smart and
they make you money. And the confidence that comes from following a
proven market timing system only adds to the experience. With the
Cabot Market Letter
and its award-winning timing system, you will Know the Bull when it
arrives. No Bull.
For details, click here.
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In this week's Stock Market Video, Mike Cintolo, the editor of
Cabot Market Letter
and
Cabot Top Ten Trader
, says that the recent strong day or two in the market is a good
sign, but there's still more work to do before the trend turns up.
It's a time to remain defensive and avoid predictions of either
future strength or future disaster. Stocks discussed include
Apple (
AAPL
), Chipotle Mexican Grille (
CMG
), Amazon (
AMZN
),
and
Equinix (
EQIX
)
. Click below to watch the video!
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Here's this week's Contrary Opinion Button. Remember, you can
always view all of the buttons by
clicking here.
Don't Cry
Created by a child of Alex Seagle, current co-owner of Fraser
Management, which created all these buttons. Note the spilled milk.
The point is that you shouldn't obsess over past mistakes or bad
luck. Learn and move on.
[Editor's note: Some people have no problem at all with the "moving
on" part of this interpretation; it's the "learning" part that
escapes most people. The market is always offering lessons on what
works and what doesn't, but you have to be willing to change in
order to learn from them.]
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In case you didn't get a chance to read all the issues of
Cabot Wealth Advisory
this week and want to catch up on any investing and stock tips you
might have missed, there are links below to each issue.
Cabot Wealth Advisory 6/7/12 - The Aggressive Aggressive
Investor
Mike Cintolo takes on the techniques and rewards of
swing-for-the-fences growth investing and sees value in a company
that most of us see every day, and maybe use as our coffee and
donuts stop. Featured stock:
Dunkin' Brands (
DNKN
)
.
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Cabot Wealth Advisory 6/4/12 - War or Peace?
In this issue, Tim Lutts takes on some big issues, speculating
about what might be necessary to reduce the persistence of armed
conflicts. He also features a small company with a promising
anti-obesity drug. Featured stock:
Vivus (VVUS)
.
Enjoy the weekend,
Paul Goodwin
Editor,
Cabot Wealth Advisory