A look at 2014 and the year in review, presented by Dennis Wassung, CFA, Portfolio Manager, at Cabot Wealth Management in Salem, Massachusetts.

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

5. 2014 By Sector
2014 thru 9/23/14
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%

6. U.S. Equity Market (5-Year Bull Market)
3/9/09 to 9/23/14
250%
200%
150%
100%
50%
0%
S&P 500
3/9/2009 3/9/2010 3/9/2011 3/9/2012 3/9/2013 3/9/2014

7. U.S. Equity Market (Last 10 Years)
2004 to Today
140%
120%
100%
80%
60%
40%
20%
0%
-20%
-40%
S&P 500
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

8. U.S. Equity Market (Last 15 Years)
1999 to Today
140%
120%
100%
80%
60%
40%
20%
0%
-20%
-40%
-60%
S&P 500

9. 2014 U.S. Equity Market
2014 thru 9/23/14
12%
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
S&P 500

10. Stocks vs. Bonds (Last 5 Years)
9/25/09 to 9/19/14
120%
100%
80%
60%
40%
20%
0%
-20%
Stocks Bonds
9/25/2009 9/25/2010 9/25/2011 9/25/2012 9/25/2013

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

19. Core Belief:
The “Good” in Man Always Overcomes the “Evil”

20. Core Belief: Knowledge Creates Progress and Value

21. Core Belief: Innovation Leads to Great Value Creation

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

25. Session Presentations
begin promptly at 10:00 a.m.
Thank you.