2011 Cabot Investor Conference - 2011 Year in Review

CABOT’S 22ND ANNUAL INVESTMENT CONFERENCE & LUNCHEON Friday, September 23, 2011

Presented by: Dennis Wassung, CFA, Portfolio ManagerCABOT’S YEAR IN REVIEW

2011 BY ASSET CLASS25%20%15%10% 5% 0%-5%-10%-15%-20% 2011 thru 9/22/11

2011 BY COUNTRY: TOP & BOTTOM 5 -40% -35% -30% -25% -20% -15% -10% -5% 0% THAILAND SOUTH AFRICA UNITED STATES TURKEY SOUTH KOREA ARGENTINA CZECH REPUBLIC FRANCE HUNGARY EGYPT 2011 thru 9/22/11

2011 BY SECTOR10% 5% 0%-5%-10%-15%-20%-25%-30% 2011 thru 9/22/11

2011 Market Events S&P 50010% Debt Ceiling Debacle 8% S&P 6% Downgrades U.S. 4% Weak 2% Economic Data 0%-2%-4%-6%-8%-10%-12% 2011 thru 9/22/11

2011 Market Events S&P 50010% Debt Ceiling Debacle 8% S&P 6% Downgrades U.S. 4% Weak 2% Economic Data 0%-2%-4%-6% What’s Next?-8%-10%-12% 2011 thru 9/22/11

10-YEAR TREASURY YIELD Yield on 10-year U.S. Treasury4.5% 4%3.5% 3%2.5% 2%1.5% The 10-Year Treasury 1% yield is now near 60-year lows!0.5% 0% 12/31/07 thru 9/16/11

A YEAR AGO… STOCKS VS. BONDS Stocks Bonds12%10% 8% 6% 4% 2% 0%-2%-4%-6%-8%-10% 2010 thru 9/16/10

FULL YEAR 2010 STOCKS VS. BONDS Stocks Bonds20%15%10% 5% 0%-5%-10% 2010

EXTENDED TO TODAY… STOCKS VS. BONDS Stocks Bonds30%25%20%15%10% 5% 0%-5%-10% 12/31/09 thru 9/17/11

EQUITY MARKETS HAVE LONG-TERM VALUE:Dividend Yield Is Higher Than 10-Year Treasury Yield S&P 500 Dividend Yield 10-Year Treasury Yield8%7%6%5%4%3%2%1%0% 1998-Current

EQUITY MARKETS HAVE LONG-TERM VALUE: Stocks Are “Cheap” 1976-Current

EQUITY MARKETS HAVE LONG-TERM VALUE:25% 10-Year Rolling Returns Favor Stocks20%15%10% 5% 0% Jan-46 Dec-10 Jan-16 Jan-21 Jan-26 Jan-31 Jan-36 Jan-41 Jan-51 Jan-56 Jan-61 Jan-66 Jan-71 Jan-76 Jan-81 Jan-86 Jan-91 Jan-96 Jan-01 Jan-06 Jan-11-5%-10%-15% Rolling 10-Year Annualized Total Return of the Dow Jones Industrial Average (1910 - Present)

ONE OF THE CLASSIC “STOCK MARKET RULES”“The time to buy is when there is blood in the streets… …even if the blood is your own.” –Baron Rothschild, 18th Century

2011 Cabot Investor Conference - 2011 Year in Review

by cabotmoney on Nov 11, 2011

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2011 Cabot Investor Conference - 2011 Year in Review — Presentation Transcript