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Monthly Archives: September 2010

A Surprising Source of Investment Stress

September 30, 2010
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A Surprising Source of Investment Stress

I remember reading an article on trading psychology a few years ago that researched which of four scenarios was the least stressful after an initial purchase of a stock—a quick, big loss; a gradual, slight decline; a gradual, slight rise; or a quick surge higher. While most people would think that either of the latter two scenarios would cause the least stress—after all, the trader would have a profit in each case—it turns out that the second scenario (a gradual, tame decline) is actually the least stressful.  Why?  Because, after making the commitment, a small decline requires no action—the...

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Why JinkoSolar is Still Strong

September 28, 2010
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As to individual stocks, two weeks ago, I told you about JinkoSolar, a Chinese company that claims to be the “world’s leading vertically-integrated PV manufacturer of high quality mono- and multi-crystalline modules, cells, wafers and ingots.” I wrote: “There are many other companies doing well in the same sector, and many of them are attractive, too.  But JinkoSolar (JKS) stands out for these reasons. “1. It’s small, with a market cap of just $530 million. “2. It came public quite recently, in May of this year, so it’s still fairly unknown, which means most potential owners don’t own it...

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Two Reasons Behind the New Bull Market

September 27, 2010
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Two weeks ago, Mike Cintolo, editor of Cabot Market Letter and Cabot Top Ten Weekly, drew my attention to an interesting fact. Of the four stocks hitting new lows on the New York Stock Exchange that day, two were MasterCard (MA) and Visa (V), the kings of the credit card business. The reason is obvious.  Consumers are cutting back on credit.  No longer are they leveraging their assets to the hilt, confident that rising home values and automatic cost-of-living wage increases will enable them to pay off their debt in time. Now, sobered by the drop in real estate...

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Why Small-Cap Stocks Should not be Ignored

September 25, 2010
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A few weeks ago, I brought you the first part of a question-and-answer session with Cabot Small-Cap Confidential Editor Thomas Garrity. Today, I have the second half. Enjoy! Question: What are your thoughts on the three-year anniversary of Cabot Small-Cap Confidential? Answer: I’m feeling highly energized about the three-year anniversary of Cabot Small-Cap Confidential, especially when I think about our loyal readers. When we first started the newsletter, my goal was to share my proven investment strategy with subscribers. And we’ve done that and more. We know that readers have a choice about where to get their investment advice...

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Stock Market Analysis Video: The Trend is Up

September 24, 2010
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In this week’s Stock Market Analysis Video, Cabot China & Emerging Markets Report Editor Paul Goodwin says the stock market remains in a strong uptrend, but it’s still not time to get all the way invested. Paul says there is still a high level of anxiety among investors. Stocks discussed include: Lululemon Athletica (LULU), NetApp (NTAP), Rediff.com India (REDF) and Under Armour (UA). Watch the video!

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