Cabot Wealth Management 2014 Year in Review
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WELCOME TO CABOT’S25TH ANNUAL INVESTMENT & WEALTH MANAGEMENT CONFERENCE
Your interests and goals always come first.
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Cabot’s Year in Review
DENNIS WASSUNG, JR., CFA®
Portfolio Manager
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2014 By Asset Class
2014 thru 9/23/14
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
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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
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2014 By Sector
2014 thru 9/23/14
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
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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
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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
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U.S. Equity Market (Last 15 Years)
1999 to Today
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
S&P 500
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2014 U.S. Equity Market
2014 thru 9/23/14
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
S&P 500
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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
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Stocks vs. Bonds in 2014
2014 through 9/23/14
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
Stocks Bonds
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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
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Equity Market Valuation Not Stretched:Stocks Are Not Expensive Historically, In Expansion Periods
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Equity Market Valuation Not Stretched:Stocks Are Not Expensive Historically, In Expansion Periods
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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%
Dec
-10
Dec
-15
Dec
-20
Dec
-25
Dec
-30
Dec
-35
Dec
-40
Dec
-45
Dec
-50
Dec
-55
Dec
-60
Dec
-65
Dec
-70
Dec
-75
Dec
-80
Dec
-85
Dec
-90
Dec
-95
Dec
-00
Dec
-05
Dec
-10
Rolling 10-Year Annualized Total Return of the Dow Jones Industrial Average (1910 - Present)
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One of the Classic“Stock Market Rules”
The Stock Market climbs a “Wall of Worry”
…and it always has something to worry about!
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State of CabotPRESENTED BY ROBERT LUTTS
PRESIDENT, CHIEF INVESTMENT OFFICER
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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
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Core Belief: The “Good” in Man Always Overcomes the “Evil”
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Core Belief: Knowledge Creates Progress and Value
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Core Belief: Innovation Leads to Great Value Creation
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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)
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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
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2 1 6 E S S E X ST R E E TS 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
w w w. e C a b o t . c o mi n f o @ e C a b o t . c o m
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Session Presentations begin promptly at 10:00 a.m.
Thank you.