A Special Report from Cabot’s Top Analyst: Mike Cintolo

Welcome to Cabot Wealth Network [Cabot Wealth Network](113/d2zn7704/VWysg57c1bVgW7SBvhh7l6Vm5W8ZpTlp53gxvXN4WpFgv3qn9gW7lCdLW6lZ3lHMf1r345R-5mW6J-_yN3d1_FhW5YH0LM7WSjQnW4yDP_F2JVbZjW8Qpltr24Vg-_W1MD-Rv7TnnjRW6lyLF-50phP1W6JTGHh9hGkdzW8XyB_M8fHp1pW302nS32zP2HcN8y50lN94Q4LW3xJxPh6RdfqcW6pz9WX68g74lVmPBXs3Nffy1W8Vwcr35v246VW2Sczq13BwbhsW3ddpRd5qKMSSW9gGn-d2nLWRKW1ksLnF3jFnr9W2QQ67v7bfMDXW7yzCK882R4WXVCNj3v61SRZhVNsy0B8kCl38W83sBCT624bP-d7QSlM04) A Note From Cabot’s CEO, Ed Coburn As promised, I’ve put together a special briefing involving an opportunity from one of Cabot’s top analysts. Don’t miss this vital resource from Mike Cintolo, long-time Cabot editor and analyst for Cabot Growth Investor and Cabot Top Ten Trader: Stock Market Investing At Cabot, we’re veterans of the stock market, having been at it since 1970, and having studied (and re-studied) market history for decades. Most investors are newer to the game, having only invested for the past five, 10 or 15 years, so the 2000s have been a bit of a shock—we started out with the biggest bear market in a generation, enjoyed a solid-but-choppy bull market from 2003 to 2007, and had another generational decline in the summer and fall of 2008 – and now after a historic bull market, we’re looking at another challenging period in 2022… All told, many stocks and sectors were decimated during those two bear markets, leaving most growth investors to wonder if there is any way to protect their wealth now that stocks have turned south again. The answer: Yes—if you have a proven system and have the discipline to follow it. While the market is sure to be challenging, we know we have the tools and tactics to make it through in fine fashion. In fact, these rules helped us avoid the market’s crash of 2008, and should help us avoid further calamity today. Below are four relatively simple steps that will help you preserve (and, more importantly, build) your wealth in the months and years to come. Nothing below is a new idea … but that’s the whole point. Most investors look for the new, exotic system, but over time, it’s the basic, straightforward advice—and the discipline to follow it—that gives you above-average returns. 1. Pay Attention to Market Timing Years ago, when we were researching market timing systems, we came up with the Cabot Tides, which determine via a series of moving averages whether most stocks are trending up or trending down. We overlaid the signals from the Tides on top of a performance chart of our Cabot Growth Investor Model Portfolio and made a stunning discovery—nearly every large decline in our portfolio came when the Tides were negative, while nearly every major upmove came when the Tides were positive. Of course, we immediately began implementing the Cabot Tides into our system, and we’re glad we did. Following the Tides guarantees we’ll never miss out on a major bull move, and also guarantees we don’t stay bullish during a major drop. But most investors ignore market timing, buying into the “I must be a long-term investor” gibberish from Wall Street. We consider ourselves longer-term investors... but if the market turns down, most stocks are heading down with it. Selling your weakest holdings and raising cash protects your portfolio from the possibility of a devastating decline. We did just this in early 2008 and subscribers held onto their money so were able to get back in the market sooner, avoiding a big loss and generating new profits sooner. 2. It’s OK to Be Wrong – But Not to Stay Wrong Being an investor is not like being a doctor or a lawyer. In those professions, you must be nearly perfect in order to excel. But investors can be highly imperfect and still make a fortune in stocks. The very best investors are wrong 30%, 40% and even 50% of the time, as a matter of fact. The difference is the best investors recognize when they’re wrong (because they have a loss), and they correct that mistake—by cutting the loss short! By consistently cutting all losses short, the smart investor is basically like a baseball team with great pitching; since the other team can’t score many runs, all it takes is a few base hits to win. Similarly, all it takes is a few mild winners to more than make up for the small losses … and a few homeruns can really goose your overall performance. So remember that it’s OK to be wrong, but not to stay wrong—cut your losses short. 3. Inverse ETFs Can Help You Hedge Just in the past few years, some new, exciting vehicles (dubbed inverse ETFs) have been launched by ProShares. These are exchange traded funds (they trade just like stocks) that track a given index. But here’s what’s special: Some of the funds are leveraged long funds, so if the S&P 500 rises (or falls) 1%, the fund will rise (or fall) 2%. In terms of protecting capital, there are also funds that do the opposite; if the S&P 500 falls 1%, the fund will rise 2% (and vice versa). The benefit to you is that you can easily hedge part of your portfolio with these inverse funds. Just be aware that you only need to invest half as much, since the funds will be twice as volatile as the index. When our market timing indicators turn negative, it might pay to buy a small position of the leveraged inverse S&P 500 fund (symbol SDS), Nasdaq 100 fund (QID) or Dow Industrials fund (DXD), to hedge your exposure. 4. Take Partial Profits All the books tell us that investors like to sell their winners quickly … but we’re not so sure. Our experience is that when a stock has been good to them, investors hate to sell. Selling effectively means the investor has given up hope that the stock will move even higher, which is against human nature. Our advice is to take partial profits on the way up. If you buy a stock and it rises 15% or 20%, consider selling a small piece, maybe 10% or 15% of your shares. If the stock continues to rise, you can cash out some more. There’s no magic percentage gain at which you should sell, and you want to hold onto most of your shares if the stock is acting well, but taking a few chips off the table on the way up—called offensive selling—is a great way to book a few profits and lessen your position, making the eventual final sell decision that much easier. None of these tactics are secret or super-complex methods. They’re relatively easy to understand. The key is following them. Too many investors buy a few stocks and then put everything on cruise control. Sometimes that can work, but you’re better off spending time reviewing your stocks, cutting all losses short, and making sure they’re all strong, fundamentally-sound names. If you do that, you’ll be ahead of 90% of investors, and you’ll be in position to not just hold onto your hard-earned money, but to earn terrific returns during bull markets. If Mike Cintolo’s research sounds like something you’re interested in: I have good news. As a new Cabot reader, you can claim a steeply discounted membership to Mike’s Cabot Growth Investor Service. Normally a year’s access to Cabot Growth Investor would cost you $497, but through this special offer, you can claim [a full 30 days for just $1](113/d2zn7704/VWysg57c1bVgW7SBvhh7l6Vm5W8ZpTlp53gxvXN4WpFfC5nXHsW5BWr2F6lZ3n0W2PTlxG5l2654W8ST6_Z94RwQDN2vnbM0C1ltTW3y98ng73m59rVwWP3C5t0W9rF79ZhQ4WKwPW4wCvQ57KMPGhW5cyVrH2WGpyJW5XchtY7bFPTYN2kgykzV7hkyW4s8yzr74w0ftW1bYNXz91KLf1W3gpX8c5gh3ZQW62M0K16YYHBJN8dPpjKwhHbRW98crjN4FMGGkW2VNXLJ4CdCrTW3N4gD24Kl9_7VQqBKD6RgkckVCxH8t98WszsW3bm1bK6vZD76W4tV2GT4NhwXtW3CjGfW29thb0VS7Wn45gQL2WW510Kr43Y2pxMW60d6q22PJb7fW7d0YdG2hRFg0W5Vq3Tj4RmqnTW4qZmKj9hJ5nlW40t0jk5dh5wlW7c6lfY6Wg4vQW1XZ6-y47LWlwVGjPMm26BG_yW3jmYgf3zFFNJf4kw59g04). [Click here to see the full offer.](113/d2zn7704/VWysg57c1bVgW7SBvhh7l6Vm5W8ZpTlp53gxvXN4WpFfC5nXHsW5BWr2F6lZ3m1W4ZvcZD7MjsH1W5Y8g3P6nSVS-W3Tw_jS39BlK9VS9zZW5JY5RtW4ssYFF69nv8gW14RS4-7hKw2rN4mm5xBqFKsCVh3vvq7Vnt4gW5RjCMG7nR0wgW4m3XgK3gJmt6W63s6y81q5492W7hvsBg7mY4YhVdy3RG8zSvWHW6vpWPq69YtWKW8pfyWT7ZLB-DW9329HZ5PY_WsV_wBbY1VykV4W3nQFwp8tWjH_VGCvMQ9dgH7mW4__YlC8B2QPbW5s01k56RLLZxW7BV0Lr6GKwYtW1srBl54-Y8YnT9_kJ4yCl3nW7jpFPC7KDwbTW6bGlnl6rTmZKW4hQx3J6bMwggW5NJbyz7-32RsW12V8P-4lPpyWW8ksJP-6FkVbBW6Rprks5Z509jW4984hy8Nk_RxW4mFZM86yvF-7W95d5c23jBDq_dqwfDg04) Understand: this offer expires soon. Thanks for reading, [Coburn sig] Ed Coburn President & Publisher Cabot Wealth Network We understand your email address is private. We promise to never sell, rent or disclose your email address to any third parties. Cabot Wealth Network, 201 Washington St. Ste 215, Salem, MA 01970, United States, (978) 745-5532 [Unsubscribe]( [Manage preferences](