Stock Market Video
Making Money Work
Consideration Is The Sign Of Wisdom
In Case You Missed It
In this week's Stock Market Video, Mike Cintolo talks about
the bullish general market, not just from the action of the major
indexes, but the rotation out of many defensive stocks and into
growth-oriented names during the past few weeks. It's not a time
to buy 10 new stocks all at once, but there are plenty of
opportunities emerging every day or two. Stocks mentioned include
), Nationstar Mortgage (
), Ocwen Financial (
), EQT Corp. (
Tesla Motors (
Click here to watch the stock market video!
Making Money Work
So what the heck kind of investor are you anyway?
If you're like most investors I know (and I know quite a few),
you probably believe in the value of work. That means that you
have built the principle that there's no such thing as a free
lunch into the foundation of your life. Investors may talk about
"playing" the market, but they know that investing is really
work. The market has a way of teaching people who don't put in
the time and effort: It takes their money.
Work creates value; it turns commodities into products and
products into companies. Work also turns ideas into realities and
helps to create new realities.
Personally, I've worked all my life (except for brief periods
when I was "at liberty," as actors used to say). I've done
everything from being a fry cook and planting trees to driving
busses, delivering building supplies and conducting phone
surveys. I've been a paid political speechwriter and a traffic
analyst for an intelligence agency. I think work is a good thing,
even if there were a few jobs I was glad to see the backside
But the uncomfortable truth about work is that it's … well,
it's work! Work requires effort, even if you enjoy it. Lots of
people get the Sunday-Night Blues because they have to be back in
the shop on Monday. We all make bad jokes about disliking it:
"Hard work never killed anyone, but I'd rather not take a chance"
and "Work fascinates me. I can sit and watch it for hours." And
we fantasize about what we'd do if we hit the lottery.
But the truth is that a lot of people who require themselves
to work hard don't impose the same requirement on their money.
They put their money into a savings account or government bonds.
And these days, that's the same as letting your money live the
laziest, most unproductive kind of life you can imagine. Because
savings accounts and Treasuries aren't working!
The most recent Gallup poll on stock ownership tells us that
just 52% of adults in the U.S. actually own stocks, either
directly or through mutual funds, 401(k)s or IRAs. That's the
lowest this figure has been since Gallup started asking about it
back in 1999.
Meanwhile, the stock market has been on a tear, making a ton
of money for the people who've been investing in stocks.
This is frustrating for me, personally, because I (and my
Cabot colleagues) know what to tell people about how to make
money in the stock market. That's all we do. And we're good at
And we also know that a bull market is a huge opportunity.
Bull markets aren't exactly rare, but we've been through some
pretty bull-deprived stretches in the past decade. The presence
of a bull market is the single best predictor of stock market
success. It makes investors feel smart and puts money in their
But if all you're doing is saving for the future, you (and
your money) just aren't working hard enough. Money only works
when it's invested. And saving isn't investing.
If you aren't putting your money to work, you're just floating
along on a little boat that's up a creek without a paddle. And
you're at the mercy of every sandbar, boulder, waterfall and
backwater along the way.
Want to get that boat moving? A subscription to Cabot Market
Letter will have you enjoying this bull market immediately!
Click here for details
Here's this week's Contrary Opinion Button.
Remember, you can always view all of the buttons by
Consideration Is The Sign Of Wisdom
Tim's Comment: Consideration, in its most basic form, means
simply the act of careful thought, reflection and deliberation,
exactly what you would want from a Supreme Court Justice. If
consideration leads to wisdom, wisdom can lead to successful
Paul's Comment: One of my favorite sayings is: "It is well to
remember that, with one insignificant exception, the universe is
entirely populated by others." I have no source for that quote,
but I think it's a good one. Consideration springs from
recognizing your place in the universe.
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 5/6/13-Is the Stock
Market Too High?
Tim Lutts, editor of Cabot Stock of the Month, looks for signs
that the market is overvalued, but finds mostly signs that it's
heating up. That's enough to push Roy Ward, editor of Cabot
Benjamin Graham Value Investor, to reduce his equity exposure,
but it doesn't mean there's going to be a big correction. Stock
discussed: Amazon.com (AMZN).
Cabot Wealth Advisory 5/7/13-Using Options to
Hedge a Portfolio
Cabot Options Trader's editor Jacob Mintz writes about three
options strategies you can use to hedge positions in your
portfolio, These options-covered calls, put purchases and risk
reversals-can generate income and protect against volatility.
Cabot Wealth Advisory 5/9/13-Simplify Your
Mike Cintolo, editor of Cabot Top Ten Trader, writes in this
issue about the advantages of radically simplifying your
investment system, keeping only a few rules and tools that work
and ignoring most predictions about the future. Stock discussed:
Have a great weekend,
Editor of Cabot Wealth Advisory
and Cabot China & Emerging Markets Report