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Daily Archives: October 14, 2008

The “New” New World

October 14, 2008
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In the month after the 1987 market crash, which was less damaging than the current one but far more shocking in its abruptness, Cabot Market Letter subscribers bought Apple Computer, MCI Communications, St. Jude Medical and lesser-known stocks that became big winners.  We fully expect to recommend similar high-potential stocks in the months ahead. So how do you find them? You DON’T buy fallen angels like Potash, First Solar or Research in Motion, unless you’re the most nimble of traders. You act like Columbus, searching out the growth possibilities in the New World.  That means finding fast growing companies...

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The Current Mess

October 14, 2008
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And now a few words about the current financial crisis.  Exactly one year ago I wrote the following in Cabot Wealth Advisory on the subject of financial stocks. “On the surface, the problem appears confined to the sub-prime residential lending market; thus the calls to regulate that industry better.  But the sub-prime market only developed to serve the demands of the market, which insisted on buying/speculating on assets it assumed would be worth even more in the future. “In a free market, for every buyer, there is a willing seller, and vice versa. “And the sub-prime market that developed...

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