One of the top-performing investing newsletters is being very cautious, holding a high amount of cash while searching for opportunities amid the recent market sell-off.

“We’re not in any rush to plow back into the market right now … but we’re also not opposed to doing a little fine-tuning here or there if we see a great story and setup,” the Cabot Market Letter recently stated, according to MarketWatch’s Peter Brimelow. “Overall, we feel now is the time to sit back and let the market chop around, while homing in on the potential leaders of the next leg up.”

Cabot has made several accurate calls on the market’s major moves over the past several years and has averaged annualized returns of nearly 11% (vs. 1.33% for the Wilshire 5000) over the past five years, Brimelow notes. Its portfolio is now 58% in cash. Among the stocks it has an eye on right now: Amazon.com.

Cabot also offers an interesting take on gold, discussing the SPDR Gold Trust ETF: “The trouble with gold as an investment is that it’s a pure pessimism play, and markets generally reward optimism in the long run,” the group says. “AVOID.”