2022 Year-in-Perspective - Part Two
Manage episode 355002286 series 3048796
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.
If you have any questions or would like more information, reach out to us at https://symmetrypartners.com/contact-us/
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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. Show Notes/Transcript: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.
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