Stock Market Video
Watching the Weather
This Week's Fortune Cookie
In Case You Missed It
In this week's stock market video, Mike Cintolo tells us that
Cabot's market timing indicators are back to positive, so you
should be putting more money to work. He's seeing more
divergencies, however, so the job now is to find fresh new
leaders. Mike discusses stong stocks that he's been watching.
Click below to watch the video.
Watching the Weather
As I write this, there is yet another winter storm churning
its way up the East Coast to New England, promising a delicious
combination of snow, freezing rain and just plain ice. I don't
know if this one will be tagged by the cable weather people with
a name (stupid idea, anyhow), but it's likely to make my commute
back to New Hampshire very interesting. In fact, I'm going to try
to leave early today to miss the worst of the fluffy stuff.
When I look at my favorite online weather site, there's always
a graph at the bottom of the page that charts the nice, neat
temperature averages for the year. The highs and lows bottom out
in January and peak in July, just like the calendar says they
But the reality is that a New England January can feature lows
that are below zero or highs in the 60s. I've seen both, and
sometimes in the same week!
People in New England generally take winter quite seriously,
bringing the sweaters and wool pants down from the attic, piling
on the layers of clothing and keeping snow boots by the back
And true Yankees know enough not to get their hopes for Spring
too high after a day or two of January thaw. They dress according
to the thermometer, but they manage their seasonal expectations
by the calendar.
The takeaway from all this Yankee Magazine folksiness is that
it just makes sense to manage your clothing choices, driving
style and barbequing activities by looking at what's actually
And Cabot's growth investing advisories-Cabot Market Letter,
Cabot China & Emerging Markets Report, and Cabot Top Ten
Trader-do exactly the same thing.
Cabot Market Letter just got a new buy signal from its
market-following timing indicators, so the Letter advised doing a
Cabot China & Emerging Markets Report has had a negative
timing signal from its investing universe since November. And
while many of the Report's stocks are doing well, we're not doing
any new buying until the market turns up and we get a new buy
Mike Cintolo and Tim Lutts and I are pretty good stock
pickers, and our roster of winners over the years is impressive,
if I do say so myself.
But our records wouldn't be so hot if we didn't take our
market timing so seriously. Having the trend of the market
working in our favor makes us look much smarter than may actually
be the case. It's the wisdom of over 40 years of serious market
experience that guides our decisions, including the decision to
take things slow when markets are in a foul mood and put the
hammer down when investors are pushing markets higher.
Investing when markets are kiting higher raises the
probability that good growth stocks will do well, just as having
the winds and tide at your back raises your chances of getting
your sailboat out of the harbor and making progress. The general
trend of the market is a good friend, and a relentless foe, so it
makes profitable good sense to know when it's one and when it's
So, it will probably be April before I even think about
putting up my snow boots and parka. And even then, the New
England weather will often go out of its way to make me
second-guess my decision.
But the enforced patience of staying out of a down market and
the goad to get back into a rising market will always be
something growth investors will welcome.
Cabot market timing indicators will make absolutely sure that
you never miss a major uptrend and never sit through a major
downtrend. They're like a weather guru for your portfolio.
Here's this week's Fortune Cookie. Remember, you can always
view all previous
Fortune Cookies here
Contrary Opinion buttons here.
Truly independent thinking is uncomfortable, and most people
prefer the rewards of comfort, so they tread the well-worn paths
of the masses. But it's independent thinking that builds
world-changing companies like Apple, Netflix, Amazon.com and
Tesla Motors. And it's independent thinking that has
characterized the best investors, from Benjamin Graham to Warren
I knew a woman who worked in executive development in a big tech
company who swore that top executives were really awake for only
about 10 minutes in an average week. The rest of the time, they
were gathering information or schmoozing or blathering about
things. But for those 10 minutes, which usually involved having
to make really big decisions, they were acutely alive and
incredibly focused. If you really think about your investing once
or twice a week, you're probably well ahead of the game.
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 2/10/14-Tesla Follows its
Cabot Stock of the Month head Tim Lutts uses this issue to
sing the praises of Tesla, the car and the stock (
). Tim also gives the seventh in his series on disruptive stocks
that break the rules in good ways. Stock discussed:
LightInTheBox Holding (
Cabot Wealth Advisory 2/11/14-One Great
Dividend Growth Stock
Chloe Lutts Jensen, chief analyst of Cabot Dividend Advisor,
writes in this issue about the income stocks that combine
dividends and increasing stocks prices to pay out increasing
amounts every year.
Stock discussed: Ensco (ESV
Cabot Wealth Advisory 2/13/14-Baby Time!
Proud new papa Mike Cintolo, the sage behind Cabot Market
Letter, writes about the joys and challenges of caring for a
newborn, contrasting the conflicting guidance he gets from
friends, relatives, online opinions and professionals with the
clear, simple buy and sell advice he gives subscribers. Stock
Have a great weekend,
Chief Analyst, Cabot China & Emerging Markets Report
And Editor of Cabot Wealth Advisory