September Audio Update
In this week’s update, I am answering several questions I was asked recently by members of our client family as well as in media interviews. Hope you find it helpful.
In this audio summary, I will cover the following:
- Is the market too high?
- Should I be concerned about current market levels?
- What signs are you watching for market weakness?
DWM “Core Assets” are investment assets that provide a foundation for equity investments and tend to have the following characteristics: well-established names; have strong cash flow; predictable earnings; often pay dividends; market leaders. These positions seek to provide equity exposure with a thought towards reducing potential volatility and is designed for a more conservative appreciation profile.
DWM “Slice Assets” are positions utilized in DWM investment strategies that are focused on future technology and future economic growth opportunities. The term “slice” was coined by DWM, representing a smaller percentage or slice of an overall equity portfolio strategy allocation. These assets tend to have more volatility but also provide the long-term opportunity for additional appreciation as trends emerge in the future.
The Price-to-Earnings Ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings (EPS).
The Price-to-Book Ratio compares a company's market value to its book value. The market value of a company is its share price multiplied by the number of outstanding shares. The book value is the net assets of a company.
Inflation is the rate at which the value of a currency is falling and, consequently, the general level of prices for goods and services is rising.
Interest rates are a tool of monetary policy set by central banks and used as a benchmark for business and consumer borrowing.
A “Black Swan” is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, severe impact, and the widespread insistence they were obvious in hindsight. Black swan events can cause catastrophic damage to an economy by negatively impacting markets and investments; even the use of robust modeling cannot prevent a black swan event.