The document summarizes Cabot Money Management's annual investment conference and luncheon. It includes presentations on Cabot's performance in 2012 by asset class, country, and sector. It also discusses trends in the US and global stock and bond markets over recent years. Additional sections provide summaries of Cabot's strategies and outlook, as well as an overview of the company's operations and initiatives.

1. 23rd Annual
Investment Conference & Luncheon

2. Cabot’s Year in Review
Dennis Wassung, Jr., CFA®
Portfolio Manager
Cabot Money Management, Inc.
216 Essex Street
Salem, Massachusetts 01970
800-888-6468
eCabot.com

3. 2012 By Asset Class
25%
20%
15%
10%
5%
0%
2012 thru 9/21/12

4. 2012 By Country: Top & Bottom 5
-10% 0% 10% 20% 30% 40% 50% 60%
EGYPT
TURKEY
THAILAND
GERMANY
INDIA
UNITED STATES
ARGENTINA
ISRAEL
CHILE
SPAIN
CHINA (SHANGHAI)
2012 thru 9/21/12

5. 2012 By Sector
30%
25%
20%
15%
10%
5%
0%
2012 thru 9/21/12

6. 2011 U.S. Equity Market Performance
S&P 500
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
-12%
-14%
2011 Full Year

7. 2011 & 2012 U.S. Equity Market
S&P 500
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
-12%
-14%
-16%
12/31/10 to 9/21/12

8. 2012 U.S. Equity Market
S&P 500
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
2012 thru 9/21/12

9. 2012 U.S. Equity Market
S&P 500
18%
16%
14%
12%
10%
8%
6%
What’s On The Horizon?
4%
2%
0%
12/30/2011 1/30/2012 3/1/2012 4/1/2012 5/1/2012 6/1/2012 7/1/2012 8/1/2012 9/1/2012
2012 thru 9/21/12

10. Stocks vs. Bonds (2011 & 2012)
Stocks Bonds
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
12/31/10 to 9/21/12

11. Stocks vs. Bonds in 2012
Stocks Bonds
20%
15%
10%
5%
0%
-5%
12/30/2011 1/30/2012 3/1/2012 4/1/2012 5/1/2012 6/1/2012 7/1/2012 8/1/2012 9/1/2012
2012 through 9/21/12

12. Equity Markets Have Long-Term Value:
Dividend Yield Is Higher Than 10-Year Treasury Yield
S&P 500 Dividend Yield 10-Year Treasury Yield
8%
7%
6%
5%
4%
3%
2%
1%
0%
1998-Current

13. Equity Markets Have Long-Term Value:
Stocks Are Still “Cheap”
1976-Current

14. Equity Markets Have Long-Term Value:
10-Year Rolling Returns Still Favor Stocks
25%
20%
15%
10%
5%
0%
Jan-26
Jan-11
Dec-10
Jan-16
Jan-21
Jan-31
Jan-36
Jan-41
Jan-46
Jan-51
Jan-56
Jan-61
Jan-66
Jan-71
Jan-76
Jan-81
Jan-86
Jan-91
Jan-96
Jan-01
Jan-06
-5%
-10%
-15%
Rolling 10-Year Annualized Total Return of the Dow Jones Industrial Average (1910 - Present)

15. One of the Classic
“Stock Market Rules”
The Stock Market climbs a “Wall of Worry”

16. Cabot’s Year in Review - Bonds
William Larkin, Jr.
Portfolio Manager
Cabot Money Management, Inc.
216 Essex Street
Salem, Massachusetts 01970
800-888-6468
eCabot.com

17. Federal Reserve Policies Dominate The Markets
0% Removes Safe Investment Options From The Bond Market
QE3 Targets Interest Rates Across All Maturities
JOBS The Employment Mandate Forces The Economic Recovery

18. Principal Preservation
Excessive Pessimism
Credit Dries Up
Valuations Fall
Production Slows
Cash Hoarding
Confidence is Lost
Market Fear Spreads
Panic

19. Reaching for Yield
Productions Increases
Consumer Demand Returns A
Recovery Becomes More Mainstream
Investors Begin Re-allocation to Risk B
Market Confidence Spreads
Pricing Improves C
Confidence Recovers
Initial Hiring Starts
Economy Stabilizes
Panic Subsides
X Excessive Optimism
Historic Investment Opportunities

20. Reaching For Yield
2012 Performance (Year-To-Date Returns)
18.00%
16.34%
16.00%
14.00%
12.00%
10.00% 9.06%
8.00%
5.93%
6.00%
4.00% 3.40%
2.89%
1.67%
2.00%
0.00%
US Treasury Mortgage Bond Mkt Corporate High Yield Emerging
Securities Securities Bonds Bonds Market Debt
Gov’t Backed Moderate Risk High Risk

21. A Professional New Approach Is Required
Buy & Hold No Indexing Is
Longer Works Dangerous
Opportunities
Risk
Require Flexible
Management is
Non-Core
Required
Strategies

22. State of Cabot
Robert T. Lutts
President & CIO
Cabot Money Management, Inc.
216 Essex Street
Salem, Massachusetts 01970
800-888-6468
eCabot.com

23. State of Cabot
 Cabot Technology Platform Expanding – Best Practices
 Thinking Phones
 Salesforce.com – Integration with Schwab - Custodians
 Hosted Networks – Cloud Computing
 Installing Power Backup Generator
 Staff Education – High Investment – Expanding
 Conferences, Seminars, World Travel
 Continue to Seek To Upgrade our Skills and Abilities

24. State of Cabot
 Cabot Investment Offerings
 New Equity Dividend-Oriented Portfolio – Stock Dividend – 3.5% yield
 Cabot’s knowledge and Use of New ETFs Expanding
 Fixed Income – Use of New Fixed Income products expanding
 Wealth Management Team – Best Practices
 Seminars and further education
 Advanced Degrees – Taxes, Estate Planning and Insurance work
 Staff
 Conferences, Seminars, World Travel

25. 23rd Annual
Investment Conference & Luncheon