cabot wealth management's 2014 year in review
DESCRIPTION
A look at 2014 and the year in review, presented by Dennis Wassung, CFA, Portfolio Manager, at Cabot Wealth Management in Salem, Massachusetts.TRANSCRIPT
WELCOME TO CABOT’S
25TH ANNUAL INVESTMENT & WEALTH MANAGEMENT CONFERENCE
Your interests and goals always come first.
Cabot’s Year in Review
DENNIS WASSUNG, JR., CFA®
Portfolio Manager
2014 By Asset Class
2014 thru 9/23/14
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
2014 By Country: Top & Bottom 5
2014 thru 9/23/14
-40% -20% 0% 20% 40% 60% 80% 100% 120%
ARGENTINA
EGYPT
INDIA
THAILAND
TURKEY
UNITED STATES
GERMANY
SOUTH KOREA
JAPAN
HUNGARY
RUSSIA
2014 By Sector
2014 thru 9/23/14
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
U.S. Equity Market (5-Year Bull Market)
3/9/09 to 9/23/14
0%
50%
100%
150%
200%
250%
3/9/2009 3/9/2010 3/9/2011 3/9/2012 3/9/2013 3/9/2014
S&P 500
U.S. Equity Market (Last 10 Years)
2004 to Today
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
1/2/2004 1/2/2005 1/2/2006 1/2/2007 1/2/2008 1/2/2009 1/2/2010 1/2/2011 1/2/2012 1/2/2013 1/2/2014
S&P 500
U.S. Equity Market (Last 15 Years)
1999 to Today
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
S&P 500
2014 U.S. Equity Market
2014 thru 9/23/14
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
S&P 500
Stocks vs. Bonds (Last 5 Years)
9/25/09 to 9/19/14
-20%
0%
20%
40%
60%
80%
100%
120%
9/25/2009 9/25/2010 9/25/2011 9/25/2012 9/25/2013
Stocks Bonds
Stocks vs. Bonds in 2014
2014 through 9/23/14
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
Stocks Bonds
Equity Markets Still Have Long-Term Value:10-Year Treasury Yield Is Higher, But Still Historically Low
2004 to Today
0%
1%
2%
3%
4%
5%
6%
S&P 500 Dividend Yield 10-Year Treasury Yield
Equity Market Valuation Not Stretched:Stocks Are Not Expensive Historically, In Expansion Periods
Equity Market Valuation Not Stretched:Stocks Are Not Expensive Historically, In Expansion Periods
Equity Markets Still Have Long-Term Value:10-Year Rolling Returns Have Recovered…But Still Favor Stocks
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
De
c-1
0
De
c-1
5
De
c-2
0
De
c-2
5
De
c-3
0
De
c-3
5
De
c-4
0
De
c-4
5
De
c-5
0
De
c-5
5
De
c-6
0
De
c-6
5
De
c-7
0
De
c-7
5
De
c-8
0
De
c-8
5
De
c-9
0
De
c-9
5
De
c-0
0
De
c-0
5
De
c-1
0
Rolling 10-Year Annualized Total Return of the Dow Jones Industrial Average (1910 - Present)
One of the Classic“Stock Market Rules”
The Stock Market climbs a “Wall of Worry”
…and it always has something to worry about!
State of CabotPRESENTED BY ROBERT LUTTS
PRESIDENT, CHIEF INVESTMENT OFFICER
State of Cabot
Cabot’s 31st Year – Great Opportunities Ahead
Cabot Technology Platform Expanding – Best Practices
Digital Phone System - Thinking Phones – Always Available
Software Integration with Schwab – Salesforce.com and Custodians
Hosted Networks – Cloud Computing
Hardware Upgrades – Security
Backup Generator Installed – All Tested
Green Energy Efficiency Efforts – Roof Solar Project (216 Essex, 30 Federal)
Staff Education – High Investment – Expanding
Conferences, Seminars, World Travel
Continue to Seek To Upgrade our Skills and Abilities
Core Belief: The “Good” in Man Always Overcomes the “Evil”
Core Belief: Knowledge Creates Progress and Value
Core Belief: Innovation Leads to Great Value Creation
Core Belief: Wealth Management - Process is Critical
“Investment management” is one of the (important) components within “wealth management”
Wealth Management:
Investment management
Asset allocation (equities, fixed income, international securities,
alternative assets, etc.)
Investment choices within each asset class
Retirement planning
Tax planning
Estate planning
Risk management (planning for catastrophic risks including disability,
death, long-term care, personal liability, personal property)
State of Cabot
Cabot Investment Management
Equity Research – Team Effort
Cabot’s knowledge and Use of New ETFs Expanding/Equity Sectors
Fixed Income – Use of New Fixed-Income products expanding
Wealth Management Team – Best Practices
Seminars and further education
Advanced Skills– Taxes, Estate Planning and Insurance work
Staff
Conferences, Seminars, World Travel
2 1 6 E S S E X S T R E E T
S A L E M , M A 0 1 9 7 0
( 9 7 8 ) 7 4 5 - 9 2 3 3
( 8 0 0 ) 8 8 8 - M G M T
www.eCabot . com
info@eCabot . com
Session Presentations
begin promptly at 10:00 a.m.
Thank you.