Stock Market Video
Cabot, Salem and Witches
The Hand Dealt is Determinism; The Hand Played is Free
In Case You Missed It
In this week's Stock Market Video, I sound a cautionary note.
It's not that the market is in a downtrend, far from it. But the
number of technical warning signals and former market leaders
taken off at the knees is too high to ignore. You should be
weeding out the losers and laggards in your portfolio and
tightening up your stops. Nobody knows what the market will do,
but fortune favors the prepared. Stocks discussed include:
), Shutterfly (
), Splunk (
), LinkedIn (
, among others.
Click here to watch the video!
Cabot, Salem and Witches
Cabot Heritage was founded in Salem, Massachusetts in 1970,
which makes us 43 years old this year. That makes us a fairly
venerable company as these things go, but having Salem for a home
can give you a slightly different perspective on time.
That's because Salem itself was first settled in 1623 and
incorporated in 1626, so the town was already well over
three-hundred years old (344) when Cabot put out its first
investment newsletter. So we temper our pride in our longevity
This August, we're staging the first-ever Cabot Investment
Conference, a three-day chance for our subscribers (and others
who are interested in investing) to meet all of our editors-all
eight of them-and each other. There will be a cocktail reception
on Wednesday (August 14), which will be both a meet-and-greet and
a chance to get to know the editors as people and to start asking
Thursday will be a full day of presentations, in which each of
our editors will lay out the investment rationale that guides the
construction of their advisories, give strategies for the
selection and handling of investments and answer questions from
After a half a day of presentations and questions on Friday,
attendees will find themselves in Salem with a full weekend ahead
What to do? What to do?
I thought it might be useful to give you some idea of what
there is to do in Salem when you're not getting your head stuffed
with useful and interesting investing information. So here's a
guide to Salem in August in three parts: history, culture and
just general messing around.
History-More than Just Witches
Yes, there was a spot of unpleasantness in Salem in 1692. The
locals got a little carried away with the idea that witches were
among them. After a series of Witch Trials that generated a fair
amount of hysteria and left nearly two dozen dead, things
returned to normal.
But while the Witch Trials are now regarded as a black eye for
Salem, the town has made every effort to embrace them as part of
its identity. Salem is officially The Witch City, has the outline
of a witch on the side of its police cars and employs an official
Town Witch. The downtown features a Salem Witch Museum, a bronze
statue of Bewitched star Elizabeth Montgomery (on a broom) and
more fortune tellers and shops full of witchy merchandise than
you can shake a stick at.
Personally, I give about as much credence to fortune tellers
as I do to those who predict the stock market, but if you want
your palm read, your tarot cards cast or your aura buffed to a
high sheen, Salem has you covered. Beyond its assorted
witchiness, Salem also has many reminders of its central position
in the China and spice trades, including a replica of the
Friendship, a merchantman that was launched in Salem in 1797.
National Park Rangers would love to show you around.
I have a lasting memory of touring one of Salem's
pre-Revolutionary Era houses years ago. I was stooping to get
through a very low doorway into a very authentic kitchen, its
hearth displaying all the tools necessary to get meals ready over
an open fire, when I had a realization of how small these people
actually were, and how dark and constricted their world was. It
made me glad for my convection oven and my microwave, but it also
made me sympathize with their trials, in every sense of the word.
There's also a cornucopia of restaurants, gift shops, bars, art
galleries and other spots to dawdle in. The average high
temperature in Salem is 79 in August, and the average low is 62.
Visitors know it's summer, but they're not reduced to a puddle by
Salem is lucky to have a world-class museum, the Peabody Essex
Museum right smack in the middle of town. The Peabody Essex has
great memorabilia and art connected to Salem's sailing past, but
it also features fine art collections and traveling exhibits that
make it a fabulous way to spend a day.
I saw a traveling exhibition of teapots at the PEM that
knocked my socks off. And the complete 18th century Chinese house
that they have completely reassembled there is absolutely
For the literary minded, the House of the Seven Gables, made
famous by Nathaniel Hawthorne, is open to give visitors insight
into colonial living. And Hawthorne's own home is nearby and open
to view. I always thought Hawthorne was a little creepy, and the
insight provided by his house, and the one that inspired The
House of the Seven Gables, didn't cure me of that.
General Messing Around
Salem has lots to offer, including boat rides, tours (both
witchy and historical) and all the usual amusements of a summer
in a New England tourist town. There's a 45-minute self-guided
tour of the McIntire District, an area with more than 300
historic structures. Taking this tour will show you what Salem's
rich merchants built instead of McMansions. My personal favorites
for a way to spend a few hours is just to take to the streets and
look in shop windows, find a table overlooking the harbor and
enjoy a refreshing beverage or renew my life-long search for the
best fudge in the world.
I will also let you in on one gem that few tourists get to,
even though it's know to everybody in Salem who loves breakfast.
It's Red's Sandwich Shop, a fixture in downtown Salem for more
than 50 years. Red's is located in the building that used to
house the Old London Coffee House, which extends its pedigree
back into the 17th century. The Hash & Cheese Omelet at Red's
will put a spring in your step that will last through endless
sightseeing. You won't run out of things to do in Salem. And if
you take into account the compactness of New England-it's easy to
drive through five states in one day-and the closeness of Boston,
Cape Cod and the coast of Maine, you have unlimited
Combine all that with the wealth of investment lore and
practical tips you'll get at the Cabot Investors Conference, and
I think you'll want to take us up on our offer to make your
August both instructional and enjoyable.
Here's this week's Contrary Opinion Button. Remember, you can
always view all of the buttons
by clicking here.
The Hand Dealt is Determinism; The Hand Played is Free
Originally by Indian Prime Minister Jawaharlal Nehru, who wrote,
"Life is like a game of cards. The hand you are dealt is
determinism; the way you play it is free will." It makes sense to
me. What's great about the investment world is that we are all
dealt the same cards (ignoring the professionals with their
super-fast computerized trading systems), so we all have equal
opportunity to make brilliant, highly profitable investments.
In investing, especially growth investing, which is what I know
about, knowledge and confidence lead to gains, while ignorance
and feeling like a victim leads to losses. The investment playing
field is actually pretty level, and you can buy exactly the same
issues as a mutual fund manager or a hedge fund guru. And beating
them is a real thrill.
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 4/1/13-Up 21% in One
Tim Lutts, editor of
Cabot Stock of the Month
, writes about what attendees as the Cabot Investors Conference
can look forward to. He also can't resist point out that one of
his 10 Stock to Hold Forever just spiked up 21%. Stock discussed:
Tesla Motors (TSLA).
Cabot Wealth Advisory 4/2/13 - Three Reasons to
Own Individual Stocks
I write in this issue about why individual stocks are a better
deal than mutual funds and ETFs. I also try to explain what all
the hollering about bitcoins is all about. Stock discussed:
Huaneng Power (HNP).
Cabot Wealth Advisory 4/4/13 - Three Ways to
Get Precious Metals Exposure
Chloe Lutts, editor of
Dick Davis Investment Digest
, writes in this issue about various ways to invest in precious
metals, and why. Issues discussed:
SPDR Gold Trust (GLD), ETFS Physical Precious Metals
Basket Shares (GLTR)
ETFS Physical Platinum Shares (PPLT)
Have a great weekend,
Editor of Cabot China & Emerging Markets Report
and Cabot Wealth Advisory