The Big Picture

FEBRUARY 6, 2024

And speaking of the.com implosion, like Microsoft via a case study where we, in previous strategies, we held Microsoft for a very long time, that’s where the valuation could help us in the.com bus. And actually Ben Inker is the head of our asset allocation group. 00:18:41 [Speaker Changed] Yep. It was over 50 right?

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Valuation Investing Investments Assets 130

Brown Advisory

NOVEMBER 29, 2016

Alternatively, nonprofits can boost potential portfolio returns, which often means tolerating more risk and illiquidity, through a recalibration of asset allocation— the single biggest driver of long-term gains. Reassess asset allocation. Choose investment managers with solid long-term performance. Only 12% of U.S.

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Nonprofit Asset Allocation Portfolio Budgeting 52

James Hendries

NOVEMBER 3, 2022

Still, as we survey what are better equity valuations, long-awaited income opportunities in the bond market, and a likely less-antagonistic Fed in 2023, there may be emerging reasons to believe that the next year may be more constructive than the last. Asset allocation does not ensure a profit or protect against a loss.

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Clients Asset Allocation Investment Advisor Economics 52

James Hendries

JANUARY 13, 2023

economy to avoid recession, and support above-average valuations. The relationship between inflation and stock valuations is a strong one, as shown in Figure 2 , which meant the market could no longer support price-to-earnings (P/E) ratios over 20 (the same goes for the relationship between interest rates and stock valuations).

Marketing 52

Marketing Marketing Valuation Banking 52

James Hendries

MARCH 6, 2023

Higher interest rates are challenging stock valuations and perhaps pushing the gains further out in 2023, but we still see solid potential for double-digit returns for stocks this year. Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. All index data from FactSet.

Marketing 52

Marketing Marketing Economy Economics 52

James Hendries

NOVEMBER 15, 2022

One equity market debate discussed frequently in the LPL Research Strategic & Tactical Asset Allocation Committee (STAAC) is the growth vs. value style reversal experienced the past 12 months. Increasing the discount rate, which lowers the present value of future cash flows, and company valuations.

Marketing 52

Marketing Marketing Asset Allocation Valuation 52

James Hendries

NOVEMBER 15, 2022

The Strategic and Tactical Asset Allocation Committee’s (STAAC) S&P 500 year-end fair value target of 4,000-4,100 is based on a price-to-earnings ratio of 17.5 It is also a major component used to calculate the price-toearnings valuation ratio. times the STAAC’s 2023 S&P 500 earnings per share forecast of $230.

Portfolio 52

Portfolio Taxes Government Investment Advisor 52

James Hendries

OCTOBER 7, 2022

The Strategic and Tactical Asset Allocation Committee (STAAC) upgraded its view of duration to neutral. It is also a major component used to calculate the price-toearnings valuation ratio. Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC).

Portfolio 52

Portfolio Taxes Investment Advisor Asset Allocation 52

James Hendries

SEPTEMBER 8, 2022

The Strategic and Tactical Asset Allocation Committee (STAAC) downgraded its view of emerging market (EM) equities in August. It is also a major component used to calculate the price-toearnings valuation ratio. Core bonds, as measured by the Bloomberg Aggregate Bond index, lost 2.8%

Portfolio 52

Portfolio Taxes Investment Advisor Asset Allocation 52

James Hendries

DECEMBER 4, 2022

Retailer valuations have also taken a hit, as the forward (next 12 months) P/E multiple has contracted ~20% year to date, from ~27x to ~22x currently. Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. All index data from Bloomberg.

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Retail Marketing Marketing Sales 52

James Hendries

JUNE 20, 2023

LPL’s Strategic and Tactical Asset Allocation Committee (STAAC) recommends a neutral tactical allocation to equities, with a modest overweight to fixed income funded from cash. Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. All index data from FactSet.

Marketing 52

Marketing Marketing Economy Communication 52

James Hendries

JULY 3, 2023

Investment Conclusion Stocks have celebrated the newly minted bull market, closing out one of the best first halves for the S&P 500 in recent decades, up 15.9%, and a third consecutive quarterly gain over 7%. Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock.

Marketing 52

Marketing Marketing Banking Valuation 52

James Hendries

AUGUST 15, 2022

We maintain our preference for equities over fixed income and cash in our recommended tactical asset allocation. Stock valuations are higher but bond yields are still low enough to support valuations with the 10-year Treasury yield well under 3% despite the big jobs number. All index data from FactSet.

Marketing 52

Marketing Marketing Economy Valuation 52

James Hendries

NOVEMBER 22, 2022

Recent wholesale inflation tells a similar story of a peak in pricing pressures, which has been the expectation of the Strategic and Tactical Asset Allocation Committee (STAAC) at LPL Research. Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock.

Marketing 52

Marketing Marketing Valuation Asset Allocation 52

Brown Advisory

JULY 1, 2016

Changes in their assumed rate of return can impact decisions ranging from asset allocation to the spending level that a portfolio can rationally support. Our Investment Solutions Group spends considerable time trying to gauge the long-term outlook for stocks since it is central to asset allocation decisions and recommendations.

Investing 52

Investing Investments Portfolio Assets 52

Brown Advisory

JULY 1, 2016

Changes in their assumed rate of return can impact decisions ranging from asset allocation to the spending level that a portfolio can rationally support. Our Investment Solutions Group spends considerable time trying to gauge the long-term outlook for stocks since it is central to asset allocation decisions and recommendations.

Investing 52

Investing Investments Portfolio Assets 52

ClearMoney

NOVEMBER 4, 2021

As with many things in life, the truth is somewhere between the extremes: While both simulated and real-world data suggest momentum may not be suitable as a driver of long-term asset allocations, we believe momentum considerations can be integrated in a cost-effective way to help inform daily portfolio management decisions.

Asset Allocation 52

Asset Allocation Commission Portfolio Assets 52

James Hendries

JULY 6, 2022

While we acknowledge that a V-shaped recovery is probably not in the cards and prior valuation targets no longer appear achievable, we remain constructive on equities for the second half, but not complacent. Remember stock valuations are inversely correlated to inflation and interest rates. So a P/E over 20 is probably too rich.

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Marketing Marketing Valuation Economy 52

James Hendries

NOVEMBER 8, 2022

Barry Gilbert , PhD, CFA, Asset Allocation Strategist, LPL Financial. It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio. Our best advice: Just go and vote. All index data from FactSet.

Marketing 52

Marketing Marketing Government Banking 52