Government bonds saw one of the single greatest drops since their inception and international stocks were adversely affected by foreign conflicts. It was a challenging year to say the least. But, we firmly believe that a well-researched strategy of diversification (across asset classes of all types) can help investors endure these down market periods. Listen to the second half of our "2022 Year-in-Perspective" for a detailed review of market performance last year, and, discussion of our hopes for 2023.
You can also find us on Facebook, YouTube, Twitter, and LinkedIn. As always, we remain invested in your goals.
Symmetry Partners, LLC, is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered, excluded or exempted from registration requirements. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. No one should assume that future performance of any specific investment, investment strategy, product or non-investment related content made reference to directly or indirectly in this material will be profitable. As with any investment strategy, there is the possibility of profitability as well as loss.
Due to various factors, including changing market conditions and/or applicable laws, the content may not be reflective of current opinions or positions.
Please note the material is provided for educational and background use only. Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice.
0
00:00:01.800 --> 00:00:07.300
Welcome back
1
00:00:07.300 --> 00:00:10.200
listeners. This is your host Tom romano, and thank you
2
00:00:10.200 --> 00:00:13.300
for joining us for part two of our 2022 year
3
00:00:13.300 --> 00:00:16.900
in perspective. Once again, we're joined by Casey Dillon
4
00:00:16.900 --> 00:00:19.700
to give us some insights on the markets and
5
00:00:19.700 --> 00:00:22.300
how they affected investors throughout the course
6
00:00:22.300 --> 00:00:25.600
of the previous year. Thanks for joining us again. Casey talked us
7
00:00:25.600 --> 00:00:28.400
a little bit. How did the markets react right? I mean we saw both
8
00:00:28.400 --> 00:00:32.200
equities and fixed income have negative
9
00:00:31.200 --> 00:00:34.900
performance for the year. And what
10
00:00:34.900 --> 00:00:37.400
are we seeing from rates of
11
00:00:37.400 --> 00:00:40.000
return from the US as well as abroad?
12
00:00:40.800 --> 00:00:44.200
Yeah, well the the sharp increase
13
00:00:43.200 --> 00:00:46.900
in rates reverberated across
14
00:00:46.900 --> 00:00:49.700
markets everything from stocks to
15
00:00:49.700 --> 00:00:51.300
bonds to real estate to commodities.
16
00:00:52.200 --> 00:00:55.300
And in what we observed was
17
00:00:55.300 --> 00:00:58.900
sort of some interesting things
18
00:00:58.900 --> 00:01:00.400
again threads that
19
00:01:01.300 --> 00:01:05.300
We'd seen coming into 2022 for instance. The
20
00:01:04.300 --> 00:01:08.400
the growth of tech stocks
21
00:01:08.400 --> 00:01:12.100
becoming a huge portion of
22
00:01:11.100 --> 00:01:14.600
the sort of the the US market,
23
00:01:14.600 --> 00:01:17.700
right? So if you you think about the Fang stocks Facebook
24
00:01:17.700 --> 00:01:19.600
Apple Amazon Netflix, Google
25
00:01:20.400 --> 00:01:23.700
They accounted for almost 25% of
26
00:01:23.700 --> 00:01:25.000
the market cap of the US.
27
00:01:25.900 --> 00:01:28.000
Coming into 2022 and they were
28
00:01:28.100 --> 00:01:31.400
the sort of those growth oriented tech stocks were the drivers
29
00:01:31.400 --> 00:01:34.600
of the tremendous returns
30
00:01:34.600 --> 00:01:37.000
that the market had given kind of the past five years.
31
00:01:37.800 --> 00:01:40.800
Or even ten and and to the
32
00:01:40.800 --> 00:01:43.100
point that there were a lot of folks who looked at that and said,
33
00:01:43.100 --> 00:01:47.200
hey, look are we out over our skis here this feels
34
00:01:46.200 --> 00:01:49.800
very much. Like we're entering into kind
35
00:01:49.800 --> 00:01:52.800
of frothy Tech bubble territory
36
00:01:52.800 --> 00:01:56.700
and there were sort of the Hallmark things
37
00:01:55.700 --> 00:01:58.300
trappings of
38
00:01:58.300 --> 00:02:01.200
that that were that felt very familiar to
39
00:02:01.200 --> 00:02:04.300
those of us who lived through the first tech bubble. So you saw things
40
00:02:04.300 --> 00:02:07.300
like the mean stocks right with games stop
41
00:02:07.300 --> 00:02:10.200
and Best Buy and sort of, you know day trading.
42
00:02:11.100 --> 00:02:15.300
To to the overuse of Leverage on these
43
00:02:15.300 --> 00:02:18.200
and a lot of that was kind of being driven by
44
00:02:18.200 --> 00:02:21.300
this idea that you know coming out of the pandemic these
45
00:02:21.300 --> 00:02:24.300
growth stocks. This was the story. These were the story
46
00:02:24.300 --> 00:02:27.700
stocks that people were gravitating to so so what happens people
47
00:02:27.700 --> 00:02:30.900
buy them up they to the point where the valuation
48
00:02:30.900 --> 00:02:33.200
no longer makes sense. If you
49
00:02:33.200 --> 00:02:37.300
take a step back and say well what am I buying right at
50
00:02:36.300 --> 00:02:38.000
the end of the day?
51
00:02:39.700 --> 00:02:42.700
Investing is about purchasing future cash flows. And
52
00:02:42.700 --> 00:02:45.600
so you arrive at a price today based on
53
00:02:45.600 --> 00:02:48.300
some assessment of what you think those future cash flows
54
00:02:48.300 --> 00:02:49.700
are and what you're willing to pay for those.
55
00:02:50.400 --> 00:02:54.300
If you get to a point where you're paying so much today for
56
00:02:53.300 --> 00:02:56.400
you know, this idea of
57
00:02:56.400 --> 00:02:59.400
heightened future cash flows at some
58
00:02:59.400 --> 00:03:00.800
point you enter into a world where?
59
00:03:01.600 --> 00:03:04.300
To to even substantiate the price you're willing
60
00:03:04.300 --> 00:03:07.900
to pay today. You have to have Perfection on those future casuals
61
00:03:07.900 --> 00:03:10.400
going forward and the world doesn't work that way right? You
62
00:03:10.400 --> 00:03:13.100
have a situation where Russia invades Ukraine, you have
63
00:03:13.100 --> 00:03:16.800
a situation where you have, you know pandemics and Avian flues
64
00:03:16.800 --> 00:03:19.300
and things like that. So the world is just in that
65
00:03:19.300 --> 00:03:23.200
need a place where you can predict Perfection
66
00:03:22.200 --> 00:03:26.000
for cash flows for things like yeah, Facebook
67
00:03:25.500 --> 00:03:28.200
Apple Amazon, and in fact what we see
68
00:03:29.100 --> 00:03:32.900
The the case for Perfection fell off the cliff in 2022
69
00:03:32.900 --> 00:03:35.200
because the the earnings for
70
00:03:35.200 --> 00:03:38.300
those companies started to turn around and go the other way and that
71
00:03:38.300 --> 00:03:41.700
caused Market participants to rethink the
72
00:03:41.700 --> 00:03:44.800
valuations that they were giving them and what
73
00:03:44.800 --> 00:03:47.600
we observed was the Fang stocks lost
74
00:03:47.600 --> 00:03:50.500
collectively over three trillion dollars in market
75
00:03:50.500 --> 00:03:53.300
cap over the course of the year. So that that
76
00:03:53.300 --> 00:03:56.700
was a homos 25% of the total market cap lost in
77
00:03:56.700 --> 00:03:59.400
the US was attributable to those handful of stocks
78
00:03:59.400 --> 00:04:02.000
right those those Fang stocks that you allude to. I mean
79
00:04:02.400 --> 00:04:06.200
at some point they were you know, collectively very
80
00:04:05.200 --> 00:04:08.800
large percentage of common us benchmarks
81
00:04:08.800 --> 00:04:11.300
like like the S&P 500, right they've been
82
00:04:11.300 --> 00:04:14.200
inflated and so when there is that correction, you're gonna
83
00:04:14.200 --> 00:04:17.300
feel it across the the industry across the all
84
00:04:17.300 --> 00:04:20.100
the markets rather. So I think that makes a lot of
85
00:04:20.100 --> 00:04:23.800
sense a lot of our investors are evidence-based investors,
86
00:04:23.800 --> 00:04:26.800
you know, Casey you and I share the same investment philosophy
87
00:04:26.800 --> 00:04:28.700
of buying hold.
88
00:04:29.500 --> 00:04:33.200
Long-term taking a factor approach to investment management.
89
00:04:34.800 --> 00:04:37.200
What how did factor-based investors or
90
00:04:37.200 --> 00:04:40.900
evidence-based investors fair in 2022?
91
00:04:40.900 --> 00:04:43.500
Yeah, so if you think about what what
92
00:04:43.500 --> 00:04:47.100
are you doing? If you're a factor investor? Well yours, you're
93
00:04:46.100 --> 00:04:49.700
lazing in on specific characteristics of
94
00:04:49.700 --> 00:04:52.200
risk to invest in and those
95
00:04:52.200 --> 00:04:55.600
character those risk factors those characteristics of
96
00:04:55.600 --> 00:04:58.200
risk that that you have
97
00:04:58.200 --> 00:05:02.300
been identified by way of academic research to have a
98
00:05:01.300 --> 00:05:04.800
premium or return
99
00:05:04.800 --> 00:05:07.600
associated with that that characteristics of risk.
100
00:05:07.600 --> 00:05:10.800
So you're trying to figure it
101
00:05:10.800 --> 00:05:13.500
out and say okay, you know, the the tech stocks
102
00:05:13.500 --> 00:05:17.000
is great example, the thing stocks if things become exceedingly
103
00:05:16.800 --> 00:05:19.300
expensive. Well, what does that
104
00:05:19.300 --> 00:05:22.300
do? Then to the cheaper stocks the stocks that aren't the
105
00:05:22.300 --> 00:05:25.800
thing stocks, right? How are they priced relative
106
00:05:25.800 --> 00:05:28.800
to these these growthier stocks?
107
00:05:29.500 --> 00:05:32.200
What historically we've observed is that
108
00:05:32.200 --> 00:05:35.700
there is a premium associated with valuation. Meaning
109
00:05:35.700 --> 00:05:38.700
the cheaper stocks tend to outperform the
110
00:05:38.700 --> 00:05:40.200
more expensive stocks over time.
111
00:05:41.300 --> 00:05:44.200
And so you enter into a world where the Fang stocks are
112
00:05:44.200 --> 00:05:47.800
ripping the cover off the ball and they're kind of the expensive growth stocks and
113
00:05:47.800 --> 00:05:50.300
by comparison, the the cheaper value
114
00:05:50.300 --> 00:05:54.100
stocks just aren't keeping up with that on the upswing and
115
00:05:53.100 --> 00:05:56.600
you got to a point where the
116
00:05:56.600 --> 00:05:59.100
market was collectively the one of
117
00:05:59.100 --> 00:06:02.900
the most expensive markets in history. Meaning that
118
00:06:02.900 --> 00:06:03.300
the
119
00:06:04.400 --> 00:06:08.200
thighs and weight of those Bank stocks across
120
00:06:07.200 --> 00:06:08.600
the market
121
00:06:09.400 --> 00:06:10.800
and how expensive they become
122
00:06:11.900 --> 00:06:13.100
lifted the whole market up
123
00:06:13.800 --> 00:06:16.300
But the spread between the growth stocks and
124
00:06:16.300 --> 00:06:19.400
the value stocks became as wide as we've
125
00:06:19.400 --> 00:06:22.400
seen really since the tech bubble right going back to
126
00:06:22.400 --> 00:06:25.200
that that the the value stocks were
127
00:06:25.200 --> 00:06:28.500
just so unloved and so beaten down my price relative to
128
00:06:28.500 --> 00:06:31.200
the tech stocks. So if you're
129
00:06:31.200 --> 00:06:34.400
a value investor rolling into a year like
130
00:06:34.400 --> 00:06:38.000
2022 when the the Fang
131
00:06:37.700 --> 00:06:41.000
stock bubble sort of starts to become deflated and
132
00:06:40.100 --> 00:06:44.500
those prices start to to come
133
00:06:43.500 --> 00:06:46.800
back to the mean if
134
00:06:46.800 --> 00:06:47.000
you will.
135
00:06:48.100 --> 00:06:51.400
One consequent of that is is that on a relative
136
00:06:51.400 --> 00:06:55.000
basis those cheaper value stocks start to perform better. Even
137
00:06:54.100 --> 00:06:57.700
if the market is going down as a whole the value
138
00:06:57.700 --> 00:07:00.400
stocks tend to hold up better because it's the
139
00:07:00.400 --> 00:07:02.900
top end of the market the expensive end. That's moving more.
140
00:07:03.700 --> 00:07:06.500
And so we we saw that and in 2022 value
141
00:07:06.500 --> 00:07:09.700
stocks actually did quite well, they did exceedingly well
142
00:07:09.700 --> 00:07:12.400
relative to grow stocks large
143
00:07:12.400 --> 00:07:16.100
cap value outperform large cap growth handily
144
00:07:15.100 --> 00:07:18.600
for 2022. And
145
00:07:18.600 --> 00:07:21.100
so if you're a value a factor investor with
146
00:07:21.100 --> 00:07:24.500
a tilt towards value that was really helping your portfolio in
147
00:07:24.500 --> 00:07:28.100
2022. We also saw factors like
148
00:07:27.100 --> 00:07:30.500
low volatility or
149
00:07:30.500 --> 00:07:33.900
associated with lower volatility stocks
150
00:07:33.900 --> 00:07:36.400
doing well across the
151
00:07:36.400 --> 00:07:39.200
board minimum volatility globally and
152
00:07:39.200 --> 00:07:42.500
also here in the United States. So those stocks that tend
153
00:07:42.500 --> 00:07:44.800
to be less volatile than the market in general.
154
00:07:45.500 --> 00:07:48.000
There's a return premium associated with that and of course
155
00:07:48.300 --> 00:07:52.000
in a year that highly volatile like 2022 those less
156
00:07:51.500 --> 00:07:54.400
volatile stocks had a premium associated with
157
00:07:54.400 --> 00:07:57.200
them relative to everything else. And if you're a factor investor who
158
00:07:57.200 --> 00:08:00.300
has a tilt towards minimum volatility you you reap the
159
00:08:00.300 --> 00:08:03.200
reward on that but it is as we sort of
160
00:08:03.200 --> 00:08:06.300
break out of kind of globally or looking at the US things like
161
00:08:06.300 --> 00:08:09.600
small cap stocks and Emerging Markets continue to do quite well.
162
00:08:09.600 --> 00:08:12.500
So if you had a tilt towards size in your
163
00:08:12.500 --> 00:08:15.500
Factor tilt that that paid off
164
00:08:15.500 --> 00:08:18.500
for you on a more broadly Diversified basis.
165
00:08:19.200 --> 00:08:22.700
And so you you started to see that these these
166
00:08:22.700 --> 00:08:26.000
Factor tilts in at
167
00:08:25.300 --> 00:08:28.100
a time when normally you would think a look
168
00:08:28.100 --> 00:08:31.700
if it's a risk off environment. Well Factor, it is
169
00:08:31.700 --> 00:08:34.700
a risk anyway, right? So you might
170
00:08:34.700 --> 00:08:37.800
expect for the factor exposures to
171
00:08:37.800 --> 00:08:40.300
be down it and to a degree you're
172
00:08:40.300 --> 00:08:43.700
right, but they're also relative to the other things that
173
00:08:43.700 --> 00:08:46.200
they're trading against and in that case they held up
174
00:08:46.200 --> 00:08:47.600
much better than the market in general.
175
00:08:48.300 --> 00:08:51.600
And so a broadly based a broad
176
00:08:51.600 --> 00:08:55.000
Diversified broadly Diversified Factor portfolio
177
00:08:54.100 --> 00:08:57.600
tended to do better on both a relative
178
00:08:57.600 --> 00:09:00.300
and absolute basis than the market in general
179
00:09:00.300 --> 00:09:03.300
did and certainly more so than the Contra points
180
00:09:03.300 --> 00:09:06.800
of that things like growth or more volatile stocks or you
181
00:09:06.800 --> 00:09:09.800
know, large cabs. So so being a factor investor
182
00:09:09.800 --> 00:09:12.500
really was beneficial in
183
00:09:12.500 --> 00:09:14.600
many regards in 2022.
184
00:09:15.300 --> 00:09:18.300
Yeah, we've seen that in the performance of a number of
185
00:09:18.300 --> 00:09:21.200
portfolios that that you and I have talked about over the
186
00:09:21.200 --> 00:09:25.200
years that you know, a diversified portfolio factors in
187
00:09:24.200 --> 00:09:27.400
2022 albeit was
188
00:09:27.400 --> 00:09:30.600
still in the red at the end of the year, but not nearly as as bad
189
00:09:30.600 --> 00:09:34.100
as some of those market like portfolios
190
00:09:33.100 --> 00:09:36.900
or benchmarks that we've seen. I do
191
00:09:36.900 --> 00:09:39.300
want to hang on the value conversation a little bit. Right?
192
00:09:39.300 --> 00:09:42.400
We you know value as a factor you and
193
00:09:42.400 --> 00:09:46.000
I share the the belief that investors should have exposure
194
00:09:45.200 --> 00:09:48.600
to value in their portfolios. And I know
195
00:09:48.600 --> 00:09:51.300
over the years Casey you and I have had shared a cocktail
196
00:09:51.300 --> 00:09:54.300
discussing. What was the underperformance of
197
00:09:54.300 --> 00:09:57.100
value for a number of years. We saw the rise
198
00:09:57.100 --> 00:10:01.300
of the things which we discussed earlier and for
199
00:10:00.300 --> 00:10:03.200
Value investors. I think that they were
200
00:10:03.200 --> 00:10:06.700
someone Vindicated in 2020 to but for
201
00:10:06.700 --> 00:10:09.900
those are out there listening, you know with this outperformance
202
00:10:09.900 --> 00:10:12.300
of value. Is there still room for Value to
203
00:10:12.300 --> 00:10:14.500
continue to outperform in 2023?
204
00:10:15.200 --> 00:10:19.200
You know, I love the quote history rare
205
00:10:18.200 --> 00:10:21.700
rarely repeats itself, but it often Rhymes because
206
00:10:21.700 --> 00:10:25.000
I think that that's incredibly true
207
00:10:24.600 --> 00:10:27.600
across markets in particular and I
208
00:10:27.600 --> 00:10:30.400
heard an a quote that I think shed some light on that and it's
209
00:10:30.400 --> 00:10:33.200
not that history repeats itself. It's that people
210
00:10:33.200 --> 00:10:36.600
repeat themself, right? And so if you think about markets are
211
00:10:36.600 --> 00:10:40.000
made up of people making purchasing and
212
00:10:39.300 --> 00:10:43.000
selling decisions across the board it it's it
213
00:10:42.200 --> 00:10:45.500
should be no surprise that in a similar
214
00:10:45.500 --> 00:10:47.200
type of dynamic or environment.
215
00:10:48.100 --> 00:10:51.300
People might Chase things like large cab growth
216
00:10:51.300 --> 00:10:54.300
tech stocks, right? And so if you look back to
217
00:10:54.300 --> 00:10:57.600
a time that was very similar to that during the tech bubble where
218
00:10:57.600 --> 00:11:00.900
you saw again Tech socks become very expensive and
219
00:11:00.900 --> 00:11:05.300
value stocks kind of be left to languish
220
00:11:03.300 --> 00:11:06.300
on the sidelines for
221
00:11:06.300 --> 00:11:09.300
some time when the tech Bubble Burst, right all of
222
00:11:09.300 --> 00:11:12.900
those growthy tech stocks valuation plummeted
223
00:11:12.900 --> 00:11:15.200
and value stocks had a tremendous run for several
224
00:11:15.200 --> 00:11:15.400
years.
225
00:11:16.700 --> 00:11:17.600
Well, where are we now?
226
00:11:18.200 --> 00:11:21.400
The we see these these Fang stocks the the air going
227
00:11:21.400 --> 00:11:23.300
out of them value having a nice run.
228
00:11:24.300 --> 00:11:27.000
So you might think is the run over. Well, if you
229
00:11:27.300 --> 00:11:30.600
look at the sort of globally the value spreads.
230
00:11:31.300 --> 00:11:35.400
So again cheap versus expensive we are still in
231
00:11:34.400 --> 00:11:37.800
the 90 plus percentile
232
00:11:37.800 --> 00:11:41.000
meaning it still one of the most expensive markets,
233
00:11:40.400 --> 00:11:43.700
right? So if we look at the, you
234
00:11:43.700 --> 00:11:46.400
know, nine out of 10 markets have been cheaper than
235
00:11:46.400 --> 00:11:51.100
the market that we're in currently even after 2022's price
236
00:11:50.100 --> 00:11:53.700
decline. So that tells you that value
237
00:11:53.700 --> 00:11:56.800
stocks, even though they had a tremendous year
238
00:11:56.800 --> 00:11:59.300
in 2022. The potential is there
239
00:11:59.300 --> 00:12:02.700
for them to continue to experience this
240
00:12:02.700 --> 00:12:05.600
reversion to the mean of these expensive stocks
241
00:12:05.600 --> 00:12:08.600
coming back down and value could have
242
00:12:08.600 --> 00:12:12.000
a run akin to what we observed post
243
00:12:11.500 --> 00:12:14.700
the tech bubble in the early 2000 when value
244
00:12:14.700 --> 00:12:17.900
was really dominant for a
245
00:12:17.900 --> 00:12:20.700
good three years in the marketplace. Now,
246
00:12:20.700 --> 00:12:23.800
I'm not suggesting that that it will exactly repeat itself.
247
00:12:23.800 --> 00:12:26.100
But you see the dynamic there in the case
248
00:12:26.100 --> 00:12:29.400
to be made for hey, it looks like there's still some fuel for
249
00:12:29.400 --> 00:12:29.900
this fire.
250
00:12:31.300 --> 00:12:34.200
And it would not be surprising to continue to
251
00:12:34.200 --> 00:12:38.100
see value run relative to the the
252
00:12:37.100 --> 00:12:39.100
more expensive stocks.
253
00:12:39.800 --> 00:12:42.300
Certainly, and you know, I think it's
254
00:12:42.300 --> 00:12:45.300
important for our listeners to know we're by no means suggesting people
255
00:12:45.300 --> 00:12:48.600
should speculate between growth and value. We think that you
256
00:12:48.600 --> 00:12:52.100
know factors specifically value are our
257
00:12:51.100 --> 00:12:55.700
long-term Endeavors and investors who maintain that
258
00:12:55.700 --> 00:12:58.500
exposure tend to do better over time
259
00:12:58.500 --> 00:13:02.000
is what I'm hearing you say and I
260
00:13:01.300 --> 00:13:04.200
and I lived through the tech bubble as you did
261
00:13:04.200 --> 00:13:08.200
and you know, those those years after where value did outperform
262
00:13:07.200 --> 00:13:11.400
they were still poor years, right 2000
263
00:13:10.400 --> 00:13:13.300
2001 weren't positive years in
264
00:13:13.300 --> 00:13:16.500
the market. And do you have any comments on you
265
00:13:16.500 --> 00:13:19.200
know value kind of shining during those downturns when
266
00:13:19.200 --> 00:13:22.500
we say values out performing. It doesn't necessarily I mean values positive, right?
267
00:13:22.500 --> 00:13:25.700
I think this is this the the Crux
268
00:13:25.700 --> 00:13:29.100
of why it's difficult to be a value investor because
269
00:13:28.100 --> 00:13:32.300
I mean sexually value investing
270
00:13:31.300 --> 00:13:34.400
is not hard to get your head around by cheap stuff
271
00:13:34.400 --> 00:13:39.100
and hold it right like that's not hard from sort
272
00:13:37.100 --> 00:13:39.500
of a conceptual.
273
00:13:39.800 --> 00:13:42.500
Went to get the hard part is actually doing it
274
00:13:42.500 --> 00:13:45.600
and being able to be patient through those
275
00:13:45.600 --> 00:13:48.100
periods when it doesn't look like
276
00:13:48.100 --> 00:13:51.300
it's working because those are those come right you
277
00:13:51.300 --> 00:13:54.300
you have those periods where the the tech bubble
278
00:13:54.300 --> 00:13:57.100
occurs where the Fang stocks are ripping the cover off the
279
00:13:57.100 --> 00:14:00.300
ball for five years in a row and your value stocks are languishing.
280
00:14:01.400 --> 00:14:04.700
Most investors the vast majority of investors cannot
281
00:14:04.700 --> 00:14:05.600
sit still through that.
282
00:14:06.300 --> 00:14:10.600
that's why value investing well easy to to
283
00:14:09.600 --> 00:14:12.400
sort of implement is hard
284
00:14:12.400 --> 00:14:15.700
to maintain and yet right what
285
00:14:15.700 --> 00:14:18.600
why do why do folks like you and I gravitate to
286
00:14:18.600 --> 00:14:21.500
Value as an important element of
287
00:14:21.500 --> 00:14:24.800
kind of a broad-based factor portfolio because
288
00:14:24.800 --> 00:14:27.600
the data going back over time
289
00:14:27.600 --> 00:14:30.300
suggests that if you can be patient
290
00:14:30.300 --> 00:14:33.500
through those periods when values not working the
291
00:14:33.500 --> 00:14:36.400
payoff for you when it comes in times
292
00:14:36.400 --> 00:14:39.200
like after the tech bubble when it comes when it
293
00:14:39.200 --> 00:14:42.300
comes in times like 2022 the payoff for
294
00:14:42.300 --> 00:14:44.500
you for being patient through that period
295
00:14:45.400 --> 00:14:49.300
And maintaining that that value exposure is
296
00:14:48.300 --> 00:14:51.600
significant enough such that
297
00:14:51.600 --> 00:14:54.700
over the total holding period you you
298
00:14:54.700 --> 00:14:57.100
end up ahead of where you might otherwise have been
299
00:14:57.100 --> 00:15:00.800
had you just had kind of Market level performance right?
300
00:15:00.800 --> 00:15:02.100
Just just broad beta.
301
00:15:02.900 --> 00:15:05.400
And so at the end of the day, you know, the question is, how
302
00:15:05.400 --> 00:15:08.200
do I out? How do I outperform the market? Well, one way to
303
00:15:08.200 --> 00:15:11.300
help perform. The market over time is to tilt towards
304
00:15:11.300 --> 00:15:15.000
these characteristics of risk, which have shown over
305
00:15:14.300 --> 00:15:18.000
time to outperform the market and values
306
00:15:17.100 --> 00:15:20.000
one of those now what I
307
00:15:20.200 --> 00:15:23.600
would say Tom is that it's incredibly difficult to just
308
00:15:23.600 --> 00:15:25.500
be a value investor and that's all you do.
309
00:15:26.100 --> 00:15:29.300
Which is why it's so beneficial to have a
310
00:15:29.300 --> 00:15:33.100
blend of factor exposures to have other things
311
00:15:32.100 --> 00:15:35.400
working when things like value for instance
312
00:15:35.400 --> 00:15:38.900
aren't so a good example of that is momentum, right? So
313
00:15:38.900 --> 00:15:41.300
it momentum and value are really nice
314
00:15:41.300 --> 00:15:44.600
pairing to put together in a portfolio because they're
315
00:15:44.600 --> 00:15:48.200
negatively correlated meaning when when values down
316
00:15:47.200 --> 00:15:50.400
momentum tends to be up and vice versa.
317
00:15:50.400 --> 00:15:53.400
So if the value investor if it's incredibly difficult
318
00:15:53.400 --> 00:15:57.300
to sit through those periods when value is not doing well with momentum
319
00:15:56.300 --> 00:15:59.200
exposures you end up
320
00:15:59.200 --> 00:16:01.100
having things in your portfolio.
321
00:16:02.200 --> 00:16:05.400
Which are picking up what's working and so in the case of the past five
322
00:16:05.400 --> 00:16:07.700
years a broad-based?
323
00:16:08.400 --> 00:16:12.100
Factor multi-factor portfolio would have value stocks
324
00:16:11.100 --> 00:16:15.100
in it, but it would also have some exposure
325
00:16:14.100 --> 00:16:17.200
to the fangs because those are
326
00:16:17.200 --> 00:16:20.400
representing kind of the momentum in the market until you have exposure to
327
00:16:20.400 --> 00:16:23.700
that and and that becomes an easier portfolio for
328
00:16:23.700 --> 00:16:27.300
most people to consume and sit through and the
329
00:16:27.300 --> 00:16:30.100
real magic here is the longer you
330
00:16:30.100 --> 00:16:33.900
can hold on to any of these Factor exposures. The more
331
00:16:33.900 --> 00:16:36.700
you have an expectation that you're going to have performance that's
332
00:16:36.700 --> 00:16:37.200
above Market.
333
00:16:37.900 --> 00:16:40.300
And and the real challenge for everybody is
334
00:16:40.300 --> 00:16:43.500
to sit still long enough to reap
335
00:16:43.500 --> 00:16:46.200
the reward of putting that Capital to risk. So you just trying to
336
00:16:46.200 --> 00:16:49.700
build a portfolio that people can actually stay in
337
00:16:49.700 --> 00:16:53.000
through these Market turmoil these ups
338
00:16:52.300 --> 00:16:56.000
and downs because if they can sit still there, you
339
00:16:55.400 --> 00:16:58.700
know it a bears make
340
00:16:58.700 --> 00:17:01.100
money Bulls make money pigs get slaughtered. Right? What does that mean?
341
00:17:01.100 --> 00:17:04.400
Look regardless of what your philosophy is, if you
342
00:17:04.400 --> 00:17:07.200
maintain that philosophy eventually the market
343
00:17:07.200 --> 00:17:10.400
will come around and rotate to you and pay you off for it. If you
344
00:17:10.400 --> 00:17:13.000
keep jumping from philosophy to philosophy trying to
345
00:17:13.400 --> 00:17:16.200
chase whatever is in front of you and get those returns. That's when
346
00:17:16.200 --> 00:17:19.000
you get slaughtered. That's when the cost of
347
00:17:20.300 --> 00:17:23.700
Trading in and out eats up your returns that
348
00:17:23.700 --> 00:17:26.200
that's when you're catching a falling knife. That's when
349
00:17:26.200 --> 00:17:29.200
all of these things that you hear why you might want to
350
00:17:29.200 --> 00:17:32.300
not want to be a growth investor or a value investor or
351
00:17:32.300 --> 00:17:35.100
right? All of those things can be true. If you're
352
00:17:35.100 --> 00:17:38.800
trying to find those things because the timing is is has
353
00:17:38.800 --> 00:17:41.900
been proven to be elusive if not impossible. So
354
00:17:41.900 --> 00:17:44.000
picking a philosophy and sticking with
355
00:17:44.200 --> 00:17:48.100
it as shown consistently over time to to be the way to go and we
356
00:17:47.100 --> 00:17:51.700
happen to believe in the philosophy of what's been
357
00:17:51.700 --> 00:17:54.100
shown from the academic research to be these
358
00:17:54.100 --> 00:17:57.200
characteristics of risk that pay off over time certainly and so
359
00:17:57.200 --> 00:18:01.300
in a nutshell, it's time in the market versus
360
00:18:00.300 --> 00:18:03.600
timing. The market is the best course of
361
00:18:03.600 --> 00:18:06.600
action. I want to hit upon something
362
00:18:06.600 --> 00:18:09.900
that you're alluding to and that platitude or
363
00:18:09.900 --> 00:18:12.700
it sounds like a platitude to most investors, especially
364
00:18:12.700 --> 00:18:15.400
when the markets down right telling them. I'm
365
00:18:15.400 --> 00:18:18.300
in the market not timing the market that doesn't mean much to somebody
366
00:18:18.300 --> 00:18:19.700
who's like am I gonna be able to retire?
367
00:18:20.200 --> 00:18:23.500
Right, but you have to understand where that platitude
368
00:18:23.500 --> 00:18:26.200
comes from right where where that rule of thumb comes
369
00:18:26.200 --> 00:18:30.600
from any and it is informed by
370
00:18:30.600 --> 00:18:34.400
decades upon Decades of observations
371
00:18:33.400 --> 00:18:36.400
of how markets behave
372
00:18:36.400 --> 00:18:39.600
and where returns to markets come from. Yeah. That's an excellent
373
00:18:39.600 --> 00:18:42.100
point. You were alluding to
374
00:18:42.100 --> 00:18:45.000
diversification Factor diversification but diversification as a whole
375
00:18:45.300 --> 00:18:48.300
and there's one thing I'd like you to comment on, you
376
00:18:48.300 --> 00:18:51.300
know, I've been hearing in Reading in popular press and
377
00:18:51.300 --> 00:18:54.100
in the various industry trade Rags that you know
378
00:18:54.100 --> 00:18:57.700
diversification didn't work in in 2022. My
379
00:18:57.700 --> 00:19:00.200
thought on that is that I think it's a misunderstanding of
380
00:19:00.200 --> 00:19:03.100
how diversification actually works and I'd love to hear your
381
00:19:03.100 --> 00:19:06.100
thoughts on that. Yeah. So you sort of
382
00:19:06.100 --> 00:19:09.400
come back to well. What are your expectations? I went
383
00:19:09.400 --> 00:19:12.600
when when you hear someone like you or
384
00:19:12.600 --> 00:19:16.400
I say, hey a broadly Diversified portfolio is
385
00:19:15.400 --> 00:19:18.900
is the starting point for most
386
00:19:18.900 --> 00:19:19.800
investors like
387
00:19:20.200 --> 00:19:23.500
Everybody should have if you're going to invest you should do it in a
388
00:19:23.500 --> 00:19:26.400
fashion that allows you to take advantage of broad-based diversification.
389
00:19:27.300 --> 00:19:30.800
If your expectation when you hear that is, oh, okay. I'll
390
00:19:30.800 --> 00:19:33.200
never lose money. Well, no that that's not what we're saying,
391
00:19:33.200 --> 00:19:36.500
right? The the point of broad-based diversification
392
00:19:36.500 --> 00:19:39.800
is you're taking off some of the idiosyncratic risk
393
00:19:39.800 --> 00:19:42.200
of any one kind of investment meaning.
394
00:19:43.400 --> 00:19:47.000
All I want to invest the only thing I know about is expensive wine
395
00:19:46.600 --> 00:19:49.200
French wine, right? That's the only thing I know about that.
396
00:19:49.200 --> 00:19:50.200
The only thing I want to invest in
397
00:19:50.900 --> 00:19:53.400
So if that's my investment philosophy the risk
398
00:19:53.400 --> 00:19:57.500
that I have is that the the wine
399
00:19:56.500 --> 00:19:59.800
market goes away people, you know,
400
00:19:59.800 --> 00:20:02.100
they're tasting preferences. They no longer want
401
00:20:02.100 --> 00:20:05.200
to drink expensive wines. We see
402
00:20:05.200 --> 00:20:08.600
a shift in the in the wine market where French wines are are no
403
00:20:08.600 --> 00:20:11.700
longer as highly valued as California wines, for
404
00:20:11.700 --> 00:20:14.100
instance. And if I've invested in
405
00:20:14.100 --> 00:20:17.400
a bunch of French wines, just the shift in the market now, I have
406
00:20:17.400 --> 00:20:20.700
a dramatic impact in my portfolio and or
407
00:20:20.700 --> 00:20:23.400
you know fires in
408
00:20:23.400 --> 00:20:26.700
California and drought in France and
409
00:20:26.700 --> 00:20:29.400
suddenly the wine market has absolutely no
410
00:20:29.400 --> 00:20:32.600
Supply. And so the
411
00:20:32.600 --> 00:20:35.300
price of what you're holding goes up dramatically, but then
412
00:20:35.300 --> 00:20:38.500
when it's gone, it's gone, right and then what do you invest in? So
413
00:20:38.500 --> 00:20:41.300
so the the risk of investing in any one
414
00:20:41.300 --> 00:20:45.600
thing you may know that thing inside and out but it's idiosyncratic
415
00:20:44.600 --> 00:20:47.200
to that thing. You're
416
00:20:47.200 --> 00:20:47.900
investing in like wine.
417
00:20:48.900 --> 00:20:51.700
So, you know the idea is with
418
00:20:51.700 --> 00:20:54.400
diversification. Yeah, okay invest in wine, but while
419
00:20:54.400 --> 00:20:57.900
you're doing that can we find some other things to invest in that are
420
00:20:57.900 --> 00:21:00.600
going to behave differently than Wine does
421
00:21:00.600 --> 00:21:01.100
because
422
00:21:02.200 --> 00:21:05.400
If the risks come to bear for wine, you don't get wiped out.
423
00:21:06.100 --> 00:21:09.400
Right. So we want to invest you know in a fashion
424
00:21:09.400 --> 00:21:12.300
that allows us to sort of achieve these long-term goals without getting
425
00:21:12.300 --> 00:21:15.300
wiped out along the way. So instead of investing in
426
00:21:15.300 --> 00:21:18.100
wine. Maybe we invest in, you know,
427
00:21:18.100 --> 00:21:21.100
small cap stocks in the United States and those are
428
00:21:21.100 --> 00:21:23.200
gonna look and behave very differently than the wine market.
429
00:21:23.600 --> 00:21:27.100
And maybe we invest in Emerging Market
430
00:21:26.100 --> 00:21:29.200
debt because we know that that's gonna
431
00:21:29.200 --> 00:21:32.700
behave differently than Securities and wine
432
00:21:32.700 --> 00:21:35.200
and maybe we invest in treasuries and
433
00:21:35.200 --> 00:21:38.200
maybe right. So as you start to go down that path you look at
434
00:21:38.200 --> 00:21:42.100
all of the different things you can lay around that are going to behave differently
435
00:21:41.100 --> 00:21:44.500
from the other things that you're holding. That's not
436
00:21:44.500 --> 00:21:48.700
to say that when a systematic level
437
00:21:48.700 --> 00:21:51.600
risk comes along like a pandemic or
438
00:21:51.600 --> 00:21:54.500
Rising interest rates that all of those things aren't
439
00:21:54.500 --> 00:21:58.100
going to be impacted by them. They will be right your your
440
00:21:57.100 --> 00:22:00.800
wine your small counts dogs. You're you're
441
00:22:00.800 --> 00:22:03.200
treasuries, right? You're you're emerging market
442
00:22:03.200 --> 00:22:06.400
that all of those things are gonna be impacted if there are
443
00:22:06.400 --> 00:22:09.300
issues that are roiling markets across the
444
00:22:09.300 --> 00:22:12.600
board. And and so if you're expectation going
445
00:22:12.600 --> 00:22:15.300
into a broadly based Diversified portfolio as I'll
446
00:22:15.300 --> 00:22:16.700
never lose money, or it'll never go down.
447
00:22:17.100 --> 00:22:20.200
That's the wrong. I would like to disabuse you of that notion.
448
00:22:21.200 --> 00:22:24.400
What you should expect is if any one or two of these things
449
00:22:24.400 --> 00:22:27.200
are impacted by a risk specific to it.
450
00:22:27.200 --> 00:22:30.500
I'm not going to be wiped out and that's why I would have a
451
00:22:30.500 --> 00:22:33.500
broadly based portfolio Diversified portfolio. Now,
452
00:22:33.500 --> 00:22:36.000
I will say that if a part of your
453
00:22:36.800 --> 00:22:39.800
diversification are things like Factor exposures. Well, you
454
00:22:39.800 --> 00:22:42.400
you end up often doing
455
00:22:42.400 --> 00:22:45.200
better than the market even if the markets down
456
00:22:45.200 --> 00:22:48.200
and your portfolio is down you end up doing a
457
00:22:48.200 --> 00:22:50.100
bit better than the market did in general.
458
00:22:51.100 --> 00:22:54.500
And if you look at like a sick just a generic 60 40 portfolio.
459
00:22:55.400 --> 00:22:57.700
It was one of the worst years on record for.
460
00:22:59.100 --> 00:23:00.600
1640 board folios
461
00:23:01.400 --> 00:23:04.200
because stocks and bonds both went down
462
00:23:04.200 --> 00:23:08.600
dramatically in fact bonds had a historically bad year led
463
00:23:07.600 --> 00:23:10.300
by treasuries which had the
464
00:23:10.300 --> 00:23:13.300
worst year since the you know in 200 and
465
00:23:13.300 --> 00:23:16.300
something years, right? So a 60 40
466
00:23:16.300 --> 00:23:20.500
a broad base 640 portfolio being down is unusual.
467
00:23:19.500 --> 00:23:22.300
It's Unique to have
468
00:23:22.300 --> 00:23:25.300
that experience, but it's also
469
00:23:25.300 --> 00:23:29.100
not unexpected given the the
470
00:23:28.100 --> 00:23:31.100
Catalyst for why all of those
471
00:23:31.100 --> 00:23:31.900
things were down.
472
00:23:32.900 --> 00:23:35.800
That doesn't mean you abandon that that
473
00:23:35.800 --> 00:23:38.300
investing discipline. It just means that
474
00:23:38.300 --> 00:23:43.000
you should expect there are going to be times when broad-based
475
00:23:41.400 --> 00:23:44.100
diversification isn't going to
476
00:23:44.100 --> 00:23:48.800
be the thing that saves you from experiencing a
477
00:23:48.800 --> 00:23:49.500
downmark.
478
00:23:50.300 --> 00:23:53.300
So it sounds like there's like two two things that you're bringing
479
00:23:53.300 --> 00:23:56.800
up here, right diversification certainly provides you with some
480
00:23:56.800 --> 00:23:59.700
protection from concentrated stock concentrated
481
00:23:59.700 --> 00:24:02.300
industry or even sector right? Like you bring
482
00:24:02.300 --> 00:24:06.000
up wine a great way to sort of
483
00:24:06.400 --> 00:24:10.300
balance that out by maintaining diversification. But however diversification is
484
00:24:10.300 --> 00:24:13.600
not going to necessarily protect you from the natural ebb and
485
00:24:13.600 --> 00:24:16.400
flows of the market, right? Those are gonna continue to happen
486
00:24:16.400 --> 00:24:19.400
but the market risk and I
487
00:24:19.400 --> 00:24:23.000
think you would agree is that that's what rewards investors for deploying
488
00:24:22.100 --> 00:24:25.200
their Capital into the market. Why would I invest
489
00:24:25.200 --> 00:24:28.500
broadly in you know, the S&P 500 well because
490
00:24:28.500 --> 00:24:31.300
there's risk associated broadly with the SD, but and
491
00:24:31.300 --> 00:24:34.700
I should be paid for doing so you're absolutely spot on right? Yeah. Why
492
00:24:34.700 --> 00:24:37.200
are we investing in anything because there's risk associated with
493
00:24:37.200 --> 00:24:40.200
it and that risk generates return, right? Yeah risk and return our
494
00:24:40.200 --> 00:24:43.600
absolutely Inseparable and I think it's it behooves investor
495
00:24:43.600 --> 00:24:46.200
to keep that investors to keep that sort of Mantra in
496
00:24:46.200 --> 00:24:49.200
mind so Casey, thank you so much for
497
00:24:49.200 --> 00:24:50.100
your comments. I do have
498
00:24:50.400 --> 00:24:53.500
Last question for you, you know, we covered the current events
499
00:24:53.500 --> 00:24:57.100
how that affected the markets, you know investors are
500
00:24:56.100 --> 00:24:59.400
listeners are looking at the retirement
501
00:24:59.400 --> 00:25:02.500
accounts. They're seeing a lot of red. What advice
502
00:25:02.500 --> 00:25:05.300
would you give investors? What should
503
00:25:05.300 --> 00:25:08.100
they do going into 2023? What are some of the things investors could be
504
00:25:08.100 --> 00:25:11.800
doing now? Well, you know, my my knee jerk
505
00:25:11.800 --> 00:25:14.200
response to that is nothing right. So if you're
506
00:25:14.200 --> 00:25:18.000
if you're a discipline investor maintain that discipline, right?
507
00:25:17.300 --> 00:25:20.600
There's no question 2022 was challenging year
508
00:25:20.600 --> 00:25:23.300
for investors. And there is likely,
509
00:25:23.300 --> 00:25:26.500
you know, these issues that we've been talking about they're not resolved.
510
00:25:26.900 --> 00:25:29.800
Right and in and in fact, there will be other things
511
00:25:29.800 --> 00:25:32.300
that will Royal the markets layered on
512
00:25:32.300 --> 00:25:35.400
top of these like for instance a fight over
513
00:25:35.400 --> 00:25:36.300
the debt ceiling, right?
514
00:25:37.300 --> 00:25:40.700
So there's likely more turbulence ahead. However, right the
515
00:25:40.700 --> 00:25:44.200
the best option for the long-term investor is
516
00:25:43.200 --> 00:25:46.300
to find a philosophy that
517
00:25:46.300 --> 00:25:49.500
makes sense for them build a portfolio around that and
518
00:25:49.500 --> 00:25:53.100
then maintain the course maintain
519
00:25:52.100 --> 00:25:54.200
the discipline.
520
00:25:55.800 --> 00:25:58.300
Through up markets down markets, you know turbulence in
521
00:25:58.300 --> 00:26:02.000
the headlines the it's the discipline of maintaining
522
00:26:01.200 --> 00:26:04.800
that philosophy over time that is provides the
523
00:26:04.800 --> 00:26:07.600
reward for long-term investors and their steadfast
524
00:26:07.600 --> 00:26:08.000
patients.
525
00:26:08.800 --> 00:26:12.700
Through these short-term Market movements or macroeconomic
526
00:26:11.700 --> 00:26:14.300
events are the things
527
00:26:14.300 --> 00:26:18.000
that are going to generate returns for them over the next Century, right? That's
528
00:26:17.500 --> 00:26:20.900
it just is what it is. It's what it has been for
529
00:26:20.900 --> 00:26:23.600
those investors who are looking at 2023 here are
530
00:26:23.600 --> 00:26:26.400
some statistics. Hopefully that will Empower you to maintain
531
00:26:26.400 --> 00:26:30.800
the course over the sort of the past Century
532
00:26:29.800 --> 00:26:32.600
the US has endured 15
533
00:26:32.600 --> 00:26:33.600
recessions.
534
00:26:34.500 --> 00:26:37.700
In 11 of the 15 or 73% in
535
00:26:37.700 --> 00:26:37.800
time.
536
00:26:38.400 --> 00:26:41.500
Returns on stocks were positive two years after the
537
00:26:41.500 --> 00:26:42.300
recession began.
538
00:26:43.200 --> 00:26:46.900
With an annualized average Market return 7.8% So
539
00:26:46.900 --> 00:26:49.800
if you're concern going into 2023 is always
540
00:26:49.800 --> 00:26:52.100
it gonna tip into recession. Should we be concerned with
541
00:26:52.100 --> 00:26:55.700
what the FED is doing? Are they gonna go too far? My answer to you
542
00:26:55.700 --> 00:26:59.100
would be look recessions are not new with the
543
00:26:58.100 --> 00:27:00.300
we've experienced them.
544
00:27:01.500 --> 00:27:04.300
Over time in fact more frequently than
545
00:27:04.300 --> 00:27:07.200
you would think and yet in a vast majority of those
546
00:27:07.200 --> 00:27:10.100
recessions. If you just have the patience to ride through
547
00:27:10.100 --> 00:27:13.400
it you're rewarded on the back end of that to to
548
00:27:13.400 --> 00:27:16.300
the tune of sort of a healthy average annual Market return of
549
00:27:16.300 --> 00:27:16.800
almost 8%
550
00:27:17.200 --> 00:27:20.500
So going into 2023 expect volatility
551
00:27:20.500 --> 00:27:23.300
expect there to be things playing out in the headlines. Do not
552
00:27:23.300 --> 00:27:27.000
let that pull you away from the long-term
553
00:27:26.600 --> 00:27:29.800
discipline and know that the the
554
00:27:29.800 --> 00:27:33.200
rationale for why you're investing over
555
00:27:32.200 --> 00:27:36.400
the long term is sound and
556
00:27:35.400 --> 00:27:38.400
you have expectation that this too
557
00:27:38.400 --> 00:27:40.500
shall pass and I'll be rewarded for that patients.
558
00:27:41.300 --> 00:27:44.500
Yeah, absolutely discipline and patience tends to be the biggest Catalyst
559
00:27:44.500 --> 00:27:47.600
for rewards for investors over the long term and going
560
00:27:47.600 --> 00:27:51.000
into 2023, you know investors who might be uneasy
561
00:27:50.500 --> 00:27:54.000
unable to sleep at night concerned about their portfolios.
562
00:27:53.300 --> 00:27:56.500
They should go meet with their financial advisor.
563
00:27:56.500 --> 00:27:59.500
Make sure that their current asset allocation is aligned with
564
00:27:59.500 --> 00:28:02.200
their financial plan and their long-term goals
565
00:28:02.200 --> 00:28:06.100
and objectives and you know, I think staying
566
00:28:05.100 --> 00:28:09.300
the course and remaining disciplined makes the
567
00:28:08.300 --> 00:28:11.700
most sense but making
568
00:28:11.700 --> 00:28:14.500
sure that your portfolio is aligned with what you want to achieve with.
569
00:28:14.500 --> 00:28:17.500
Your hard-earned capital is something investors could
570
00:28:17.500 --> 00:28:20.600
be doing into 2023 and then expect your
571
00:28:20.600 --> 00:28:23.300
advisor say everything's gonna be fine unless there's
572
00:28:23.300 --> 00:28:27.200
some sort of life-changing event that happens with the
573
00:28:26.200 --> 00:28:29.700
investor not necessarily the markets
574
00:28:29.700 --> 00:28:32.100
Casey. Thank you so much for your insights today.
575
00:28:32.100 --> 00:28:35.100
It's always a pleasure. We love talking to you and
576
00:28:35.100 --> 00:28:38.000
we look to have you back over the next
577
00:28:38.200 --> 00:28:40.700
couple of podcasts and I want to thank all of our listeners out there.
578
00:28:41.100 --> 00:28:45.500
Joining us today. Please feel free to access other
579
00:28:45.500 --> 00:28:49.500
podcasts that we have done and they
580
00:28:48.500 --> 00:28:51.300
can be accessed anywhere you get your
581
00:28:51.300 --> 00:28:54.500
podcast. So thanks everyone and we will see you
582
00:28:54.500 --> 00:28:57.900
next time symmetry Partners LLC is an
583
00:28:57.900 --> 00:29:00.500
investment advisor firm registered with the Securities
584
00:29:00.500 --> 00:29:03.500
and Exchange Commission The Firm only transacts business
585
00:29:03.500 --> 00:29:06.400
in states where it is properly registered or
586
00:29:06.400 --> 00:29:09.900
excluded or Exempted from registration requirements
587
00:29:09.900 --> 00:29:12.700
registration of an investment advisor
588
00:29:12.700 --> 00:29:15.200
does not imply any specific level of skill or
589
00:29:15.200 --> 00:29:18.200
training and does not constitute an endorsement of
590
00:29:18.200 --> 00:29:21.200
the firm by the commission. No one should assume that
591
00:29:21.200 --> 00:29:24.900
future performance of any specific investment investment strategy
592
00:29:24.900 --> 00:29:27.800
product or non-investment related
593
00:29:27.800 --> 00:29:30.600
content made reference to directly or indirectly in
594
00:29:30.600 --> 00:29:32.700
this material will be profitable.
595
00:29:33.700 --> 00:29:36.200
As with any investment strategy there is the
596
00:29:36.200 --> 00:29:39.800
possibility of profitability as well as loss due
597
00:29:39.800 --> 00:29:42.500
to various factors including changing market
598
00:29:42.500 --> 00:29:44.900
conditions and/or applicable laws.
599
00:29:45.600 --> 00:29:48.800
The content may not be reflective of current opinions
600
00:29:48.800 --> 00:29:51.900
or positions. Please note the material
601
00:29:51.900 --> 00:29:54.300
is provided for educational and background use
602
00:29:54.300 --> 00:29:57.800
only moreover. You should not assume that any discussion or
603
00:29:57.800 --> 00:30:01.100
information contained in this material Services the
604
00:30:00.100 --> 00:30:03.500
receipt of or as a substitute for
605
00:30:03.500 --> 00:30:05.900
personalized investment advice.
