1. WELCOME TO CABOT’S
25TH ANNUAL INVESTMENT & WEALTH MANAGEMENT CONFERENCE
Your interests and goals always come first.
2. Cabot’s Year in
Review
DENNIS WASSUNG, JR. , CFA®
Portfolio Manager
3. 2014 By Asset Class
2014 thru 9/23/14
16%
14%
12%
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
4. 2014 By Country: Top & Bottom 5
-40% -20% 0% 20% 40% 60% 80% 100% 120%
2014 thru 9/23/14
ARGENTINA
EGYPT
INDIA
THAILAND
TURKEY
UNITED STATES
GERMANY
SOUTH KOREA
JAPAN
HUNGARY
RUSSIA
11. Stocks vs. Bonds in 2014
2014 through 9/23/14
12%
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
Stocks Bonds
12. Equity Markets Still Have Long-Term Value:
10-Year Treasury Yield Is Higher, But Still Historically Low
2004 to Today
6%
5%
4%
3%
2%
1%
0%
S&P 500 Dividend Yield 10-Year Treasury Yield
13. Equity Market Valuation Not Stretched:
Stocks Are Not Expensive Historically, In Expansion Periods
14. Equity Market Valuation Not Stretched:
Stocks Are Not Expensive Historically, In Expansion Periods
15. Equity Markets Still Have Long-Term Value:
10-Year Rolling Returns Have Recovered…But Still Favor Stocks
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
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)
16. One of the Classic
“Stock Market Rules”
The Stock Market climbs a “Wall of Worry”
…and it always has something to worry about!
17. State of Cabot
PRESENTED BY ROBERT LUTTS
PRESIDENT, CHIEF INVESTMENT OFFICER
18. 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
22. 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)
23. 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
24. 216 ES SEX STREET
SALEM, MA 01970
(978) 745 -9233
(800) 888 -MGMT
www.eCabot . com
info@eCabot . com