James Hendries

MARCH 13, 2023

Instead, we got a shockingly fast collapse of a financial institution with over $200 billion in assets, which turned the market’s focus toward the stability of the banking system and what systemic risks banks might be facing. But valuations strongly favor value over growth. The S&P 600 small cap index has returned about 1.5%

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The Big Picture

AUGUST 20, 2024

And so in the 1990s, I developed the, the late 1980s, early 1990s, I developed a skillset around valuation, in particular discounted cash flow or residual income type models, along with a couple of peers out of the consulting industry. That paper refers back to the foundational literature of Bill Sharp, who wrote the famous paper in 1991.

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The Big Picture

NOVEMBER 8, 2022

CHANCELLOR: And look — yeah, but then if you look at the valuation of the market at that time, the market was — the U.S. CHANCELLOR: And look — yeah, but then if you look at the valuation of the market at that time, the market was — the U.S. CHANCELLOR: Well, he sort of — yeah, he thought about it.

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Brown Advisory

MARCH 28, 2019

Formally, this is often referred to as “capital sufficiency” planning and more informally, it is often called spend-rate planning. As we stated in “Confronting the Unknown,” our 2018 asset allocation publication, standard deviation is “a helpful shortcut for thinking about risk, but it is not a fully effective proxy.”

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Brown Advisory

MARCH 28, 2019

Formally, this is often referred to as “capital sufficiency” planning and more informally, it is often called spend-rate planning. As we stated in “Confronting the Unknown,” our 2018 asset allocation publication, standard deviation is “a helpful shortcut for thinking about risk, but it is not a fully effective proxy.”

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Dear Mr. Market

MARCH 11, 2023

IBM loses to QCOM based on valuation. Sticking back to the balancing theme of quality businesses, great valuations, meshed with the reward of a dividend, you get Ford yielding 4.62% and Conoco only at 2.16% but trading for a bargain P/E of 7. times and return on equity (ROE) of 9%.

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James Hendries

SEPTEMBER 27, 2022

The LPL Research Strategic and Tactical Asset Allocation Committee is increasing its recommended interest rate exposure in its tactical allocation from underweight to neutral. References to markets, asset classes, and sectors are generally regarding the corresponding market index.

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James Hendries

JUNE 26, 2023

However, the impending end of the Federal Reserve (Fed) rate-hiking campaign, and the economy’s and corporate America’s resilience, help make the bull case that steers LPL Research toward a neutral, rather than negative, equities view from a tactical asset allocation perspective. At the same time, the resilience of the U.S.

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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).

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Trade Brains

SEPTEMBER 26, 2024

These updates will also be available on BSE Limited’s website for public reference. Indian households traditionally invested most savings in physical assets. However, financial asset allocation increased recently. The market valuation of NSE might be between ₹2.1 lakh crore and ₹3.1

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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.

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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. References to markets, asset classes, and sectors are generally regarding the corresponding market index. Investing involves risks including possible loss of principal.

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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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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. References to markets, asset classes, and sectors are generally regarding the corresponding market index. All index data from FactSet.

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James Hendries

JUNE 20, 2023

Despite the reference to 2007, our baseline is the economic slowdown does not produce another “2008,” yet investors should anticipate some volatility as the economic outlook remains cloudy. References to markets, asset classes, and sectors are generally regarding the corresponding market index. All index data from FactSet.

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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.

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Dear Mr. Market

MARCH 17, 2024

EOG is poised to breakout and trades at bargain valuation of about nine times earnings (relative to the S&P at 23 times earnings and a touch under the overall energy sector of 12 times earnings). That said, it loses early in round one simply due to us believing it’s close to full valuation and due for a breather.

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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. References to markets, asset classes, and sectors are generally regarding the corresponding market index.

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James Hendries

JULY 3, 2023

While this latest rally may have outpaced fundamentals in the short term, from a technical analysis perspective, and valuations look full, at the same time, the resilience of the U.S. References to markets, asset classes, and sectors are generally regarding the corresponding market index. All index data from FactSet.

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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. In this context, we are not referring to the outlook for stocks over the next quarter or even the next year or two. Thus, it’s important to have a view on this key question.

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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. In this context, we are not referring to the outlook for stocks over the next quarter or even the next year or two. Thus, it’s important to have a view on this key question.

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Brown Advisory

OCTOBER 11, 2021

We believe that the investment return needed to achieve that objective should be the most important guidepost for a portfolio’s asset allocation. With traditional assets like stocks and bonds at high valuations, the implications for future returns of those assets may be underwhelming. Source: BLOOMBERG.

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Brown Advisory

OCTOBER 11, 2021

We believe that the investment return needed to achieve that objective should be the most important guidepost for a portfolio’s asset allocation. With traditional assets like stocks and bonds at high valuations, the implications for future returns of those assets may be underwhelming. Source: BLOOMBERG.

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Brown Advisory

NOVEMBER 12, 2019

This term refers to the possibility that the U.S. Once the bubble in asset prices started to burst, the leverage that had for years fueled growth then worked in reverse, quickly deflating prices. A core allocation to high-grade bonds can play a similar role. In a word, is the United States at risk of “Japanification?”

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Brown Advisory

NOVEMBER 12, 2019

This term refers to the possibility that the U.S. Once the bubble in asset prices started to burst, the leverage that had for years fueled growth then worked in reverse, quickly deflating prices. A core allocation to high-grade bonds can play a similar role. In a word, is the United States at risk of “Japanification?”

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Brown Advisory

MARCH 13, 2018

The term also refers to stock market declines of 10% or so—again, not a pleasant experience. The future course of interest rates is probably the greatest single concern for investors today, from both a fundamental and a valuation perspective. The word “corrections” conjures up all sorts of different images. Investors Intelligence U.S.

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Brown Advisory

MARCH 13, 2018

The term also refers to stock market declines of 10% or so—again, not a pleasant experience. The future course of interest rates is probably the greatest single concern for investors today, from both a fundamental and a valuation perspective. The word “corrections” conjures up all sorts of different images. Investors Intelligence U.S.

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Brown Advisory

NOVEMBER 14, 2017

While this shift in monetary policy may ultimately have important implications for asset allocation and other investment decisions, we’re not convinced that its near-term impact will be particularly significant. Meanwhile, we continue to focus on security selection. the broad markets are largely efficient.

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Brown Advisory

NOVEMBER 14, 2017

While this shift in monetary policy may ultimately have important implications for asset allocation and other investment decisions, we’re not convinced that its near-term impact will be particularly significant. Meanwhile, we continue to focus on security selection. the broad markets are largely efficient.

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Brown Advisory

MARCH 30, 2020

Essentially, liquidity refers to how quickly an investment can be turned into cash. Consider how we defined investment risk in our 2018 asset allocation publication, Confronting the Unknown: “The probability that a portfolio will not meet an investor’s needs.” Reference Market/Index % Change No. 10/15/2014 10-Yr U.S.

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Brown Advisory

MARCH 30, 2020

Essentially, liquidity refers to how quickly an investment can be turned into cash. Consider how we defined investment risk in our 2018 asset allocation publication, Confronting the Unknown: “The probability that a portfolio will not meet an investor’s needs.” Reference Market/Index. of Standard Deviations. S&P 500 Index.

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Brown Advisory

SEPTEMBER 22, 2017

ESG information helps with broader due diligence, providing insight into a company’s sustainability strategies alongside their fundamental strengths, the competitive environment, and, of course, stock valuation at the time of buy or sell decisions. These are all worthy goals and, we believe, all achievable. Hammond, and W. Springsteel.

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Brown Advisory

SEPTEMBER 22, 2017

ESG information helps with broader due diligence, providing insight into a company’s sustainability strategies alongside their fundamental strengths, the competitive environment, and, of course, stock valuation at the time of buy or sell decisions. References. Broader Application and Paths for Future Research. Hammond, and W.

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Brown Advisory

MARCH 30, 2018

While February’s volatility did not materially change our asset allocation views, it reinforced to us the importance of a comprehensive discussion about how we think about risk and how we manage it. Our asset allocation process accounts for a wide range of potential outcomes over the next 18–36 months.

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Brown Advisory

FEBRUARY 15, 2019

But the drop in valuations experienced at year’s end, alongside higher bond yields, offer a foundation for better long-term return expectations across most asset classes. This is also a fitting moment to review the intersection of risk and valuation. Entering 2019, we face rising economic, political and market risks. In non-U.S.

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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.

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The Big Picture

MARCH 26, 2024

He wasn’t tactical asset allocator. It’s about long-term planning and strategic asset allocation and, and just understanding how markets work and how behavior comes into the mix. It’s money that represents the cash needs or the, the, the liquidity side of, of asset allocation.

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