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Monthly Archives: May 2009

When Buying Stocks, Tight is Right

May 29, 2009
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When Buying Stocks, Tight is Right

If you ask most investors, you’ll find that they love to buy on weakness.  They want to buy a “good company” after the stock has fallen 10%, 20% or more.  A few investors, on the other hand, like to buy strength–they want to buy a stock as soon as it breaks out of a range, often into new-high ground. (The phrase “buying strength” always reminds me of Carlton Lutts, who founded our company decades ago and successfully ran Cabot Market Letter until just a few years ago.  He told me that, back in the 1960s, when Chrysler was a...

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Why You Should Expect Much Higher Stock Prices

May 28, 2009
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A couple of weeks ago, I touched on a couple of so-called blast-off indicators, including one that likely triggered a green light a couple of weeks ago when 90% of all NYSE stocks rose above their 10-week moving averages. I want to expand upon it here, as well as tell you about a couple of other indications that we might be starting a long-term bull market. In my write-up, I mentioned that “during the next nine months, corrections in the have been limited to 5% in general.”  That was a being a bit kind–historically, most corrections have...

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Six Big Trends You Can Profit From

May 27, 2009
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Six Big Trends You Can Profit From

We’re all familiar with the story about the frog.  If you drop him in boiling water, he’ll jump right out.  But if you put him in cold water and then heat it to boiling, he’ll adjust gradually to the increasing temperature, be lulled into inaction, and die. It’s not true; the frog will eventually jump out.  But as a cautionary tale, it reminds us that we should be wary of inaction in response to gradual changes in our environment.  In other words, as change happens–and it happens every day–you must adapt.  If not, you’ll fail to thrive … and...

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FUQI: A Healthy Looking Stock

May 25, 2009
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FUQI: A Healthy Looking Stock

My investing idea today is a jewelry company, which isn’t the sector that usually springs to mind when growth investing is mentioned. But Fuqi International (pronounced Foo-chee) is a Chinese jewelry manufacturer that’s catering to an enormous appetite for gold among China’s increasingly affluent people. In many countries, China and India among them, gold jewelry isn’t just an adornment, it’s a way to accumulate wealth and pass it along to future generations. Long experience has taught many people that necklaces around your neck and bracelets on your wrists are more portable and more reliable than volatile currencies and fragile...

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Readers React to a Car-Free World

May 22, 2009
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Readers React to a Car-Free World

Last weekend, I wrote about the mostly car-free German community of Vauban and I received lots of great responses both by email and here on our blog. Thanks to everyone who wrote in, the letters gave me a lot to think about and some even made me laugh. Today, I’m going to share some of those responses with you and I invite you to submit a response of your own if you haven’t yet. Now, for something to ponder during your long Memorial Day weekend … “Cheap energy flattened and shrank our world. Mandating a green utopia (Vaubanizing) may...

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