Q1 2023 | Putting the Quarter-in-Perspective | Part One: Market Performance
Manage episode 361861288 series 3048796
The sudden failure of Silicon Valley Bank in March jostled investors' confidence in the market. But, the overall performance of various tech stocks in Q1, such as Tesla, Meta, Alphabet, Amazon, Salesforce, AMD, and Broadcom, served to revive optimism for the stock market's near future. Join Casey Dylan, CIMA®, Consultant, and our host Tom Romano, Head of Strategic Relationships and Product Development, in this first half of of our Q1 recap, as we discuss both market, and factor performance, in the first few months of 2023.
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0 00:00:01.900 --> 00:00:07.400 Good afternoon,
1 00:00:07.400 --> 00:00:10.700 everyone. This is Tom Romano head of strategic relationships at
2 00:00:10.700 --> 00:00:14.200 symmetry partners and joined with me. Today is Casey Dillon
3 00:00:13.200 --> 00:00:16.900 a long time friend of symmetry and our
4 00:00:16.900 --> 00:00:19.500 internal communication strategist. Thank you Casey for
5 00:00:19.500 --> 00:00:22.400 joining us today. Tom is excellent to be here with you live in
6 00:00:22.400 --> 00:00:25.100 person. Yeah, fantastic. Fantastic So today, we're gonna go
7 00:00:25.100 --> 00:00:28.900 through our q1 2023 quarter in
8 00:00:28.900 --> 00:00:31.700 perspective. It's been quite the
9 00:00:31.700 --> 00:00:34.800 interesting quarter to say the least we've had
10 00:00:34.800 --> 00:00:37.800 some volatile markets. Although
11 00:00:37.800 --> 00:00:40.400 I'll be at some positive results. We've seen things
12 00:00:40.400 --> 00:00:43.300 like banking collapses in the headlines. There's still of
13 00:00:43.300 --> 00:00:46.600 course the concerns about inflation. And so
14 00:00:46.600 --> 00:00:49.800 Casey thank you for joining us to give us some perspective
15 00:00:49.800 --> 00:00:52.300 of what's going on in the market. So in a
16 00:00:52.300 --> 00:00:55.800 nutshell what happened in q1 of 2023, yeah
17 00:00:55.800 --> 00:00:58.300 in a nutshell, I'll be brief if I
18 00:00:58.300 --> 00:01:00.500 can so if you recall
19 00:01:01.800 --> 00:01:04.300 The fourth quarter of last year, right? The
20 00:01:04.300 --> 00:01:07.600 last year was a brutal year across a number of metrics, but
21 00:01:07.600 --> 00:01:10.500 the fourth quarter we started to see some respite
22 00:01:10.500 --> 00:01:13.300 from that and the first two months of the fourth quarter,
23 00:01:13.300 --> 00:01:16.600 right? We saw markets actually rebound pretty
24 00:01:16.600 --> 00:01:19.500 significantly in October and November and much of
25 00:01:19.500 --> 00:01:23.000 that was driven by the sense across
26 00:01:22.700 --> 00:01:25.900 the markets Market participants that maybe
27 00:01:25.900 --> 00:01:28.500 the Fed was done raising interest rates, maybe
28 00:01:28.500 --> 00:01:31.400 that the inflationary pressures that
29 00:01:31.400 --> 00:01:34.700 we had seen in the spring of 2022. We're
30 00:01:34.700 --> 00:01:37.400 starting to Abate and the market is
31 00:01:37.400 --> 00:01:40.800 a forward-looking forward pricing mechanism. And so
32 00:01:42.200 --> 00:01:45.200 In the fourth quarter, that's what it did. It looked forward.
33 00:01:45.200 --> 00:01:48.700 It started to anticipate a period when the the
34 00:01:48.700 --> 00:01:51.300 Fed was not raising interest rates and inflation would be tamed.
35 00:01:51.300 --> 00:01:55.100 And of course what happened in December was
36 00:01:54.100 --> 00:01:57.800 a bit of a comeuppance for
37 00:01:57.800 --> 00:02:00.400 those Market participants who got a little bit ahead of
38 00:02:00.400 --> 00:02:03.500 the fed and we saw a pullback in
39 00:02:03.500 --> 00:02:03.700 December.
40 00:02:04.400 --> 00:02:07.600 And markets responding to the fact that the FED said well, no,
41 00:02:07.600 --> 00:02:10.500 we're pretty set on continuing to raise rates.
42 00:02:10.500 --> 00:02:12.800 And and we think we're gonna keep them higher longer.
43 00:02:13.700 --> 00:02:16.500 As we rolled into the first quarter of this year. We saw
44 00:02:16.500 --> 00:02:19.900 a replay of a lot of those Dynamics coming into
45 00:02:19.900 --> 00:02:23.000 January Market participants
46 00:02:22.300 --> 00:02:24.000 again. It's sort of
47 00:02:25.400 --> 00:02:28.200 Determined that this was the year the Fed was
48 00:02:28.200 --> 00:02:31.100 going to stop rate and Market participants started to
49 00:02:31.100 --> 00:02:34.200 look forward and price as if the not only
50 00:02:34.200 --> 00:02:37.600 with the FED stop racing rates, but they would start to pull rates
51 00:02:37.600 --> 00:02:42.400 back by the end of the year given where people
52 00:02:41.400 --> 00:02:45.300 reading the tea leaves assumed the
53 00:02:45.300 --> 00:02:47.500 economy would be by mid-year.
54 00:02:48.200 --> 00:02:51.800 And so you saw a really robust Rebound in
55 00:02:51.800 --> 00:02:54.000 January for a lot of the names that have been
56 00:02:54.200 --> 00:02:57.900 really beat up in 2022 specifically the
57 00:02:57.900 --> 00:03:01.000 large cab growth and Tech names and
58 00:03:00.300 --> 00:03:03.200 so there was something of a reversion to
59 00:03:03.200 --> 00:03:06.300 the mean in terms of those names really
60 00:03:06.300 --> 00:03:09.500 leading the charge in January. Those are
61 00:03:09.500 --> 00:03:12.200 the names that were most beaten up in 2022. Those are the
62 00:03:12.200 --> 00:03:15.500 names that snap back fastest in the
63 00:03:15.500 --> 00:03:18.500 first quarter. And so January where we
64 00:03:18.500 --> 00:03:22.900 saw for instance the S&P down 20% for
65 00:03:22.900 --> 00:03:25.200 2022. We saw
66 00:03:25.200 --> 00:03:28.100 a Resurgence just in the month of January the SP was up
67 00:03:28.100 --> 00:03:31.400 like eight percent and the NASDAQ double that right just on the
68 00:03:31.400 --> 00:03:34.400 strength of kind of those large cap Tech names and of course what happened
69 00:03:34.400 --> 00:03:38.100 as we rolled into February the news that
70 00:03:37.100 --> 00:03:40.400 came out on the sort of
71 00:03:40.400 --> 00:03:43.400 economic underpinnings specifically job data for
72 00:03:43.400 --> 00:03:47.100 January really surprised Market
73 00:03:46.100 --> 00:03:48.100 participants because
74 00:03:48.200 --> 00:03:52.400 It was so robust. So strong it exceeded expectations. It
75 00:03:51.400 --> 00:03:54.800 served as a really Stark reminder that we're
76 00:03:54.800 --> 00:03:55.500 not out of the woods yet.
77 00:03:56.200 --> 00:03:59.500 And and it sent shock waves
78 00:03:59.500 --> 00:04:02.400 across the market in the sense that everyone who
79 00:04:02.400 --> 00:04:06.000 had said. Okay. Well now the FED is gonna have to wind this down all
80 00:04:05.200 --> 00:04:08.400 the sudden the the realized maybe not
81 00:04:08.400 --> 00:04:11.400 right not only is the fed maybe not gonna wind this
82 00:04:11.400 --> 00:04:14.700 down because the economy is hotter than we thought it was but we potentially
83 00:04:14.700 --> 00:04:17.600 risk sort of a flare-up of inflation
84 00:04:17.600 --> 00:04:20.100 just as it was coming down and the FED may have
85 00:04:20.100 --> 00:04:23.500 to get more aggressive in in tackling that and
86 00:04:23.500 --> 00:04:27.000 so February saw sort of a revisitation of
87 00:04:26.400 --> 00:04:29.500 those expectations that market participants
88 00:04:29.500 --> 00:04:33.100 had and as we rolled into March then all
89 00:04:32.100 --> 00:04:35.800 eyes were on the Senate
90 00:04:35.800 --> 00:04:38.700 hearings with the the chairman
91 00:04:38.700 --> 00:04:41.200 of the fed and based on his
92 00:04:41.200 --> 00:04:44.700 comments Futures skyrocketed for an expectation
93 00:04:44.700 --> 00:04:47.200 of a 50 basis point raise at
94 00:04:47.200 --> 00:04:50.500 the end of March the Futures went up to like a 70% chance that
95 00:04:50.500 --> 00:04:53.300 the Fed was gonna raise 50 basis points, and
96 00:04:53.300 --> 00:04:55.500 of course what happened then you know days later.
97 00:04:56.100 --> 00:05:00.000 Started imploding right and that sort
98 00:04:59.100 --> 00:05:03.000 of Royal financial markets and
99 00:05:02.500 --> 00:05:05.200 the FED did end up raising rates. But
100 00:05:05.200 --> 00:05:08.200 only by 25 basis points after they had worked to
101 00:05:08.200 --> 00:05:11.200 sort of rescue. I don't know rescues the
102 00:05:11.200 --> 00:05:15.500 right term but step in aggressively and calm markets
103 00:05:14.500 --> 00:05:17.200 particularly folks who
104 00:05:17.200 --> 00:05:20.600 had cash on deposited Banks to keep sort
105 00:05:20.600 --> 00:05:23.200 of a contagion effect and a larger Bank Run taking place.
106 00:05:23.200 --> 00:05:26.800 Right? So we end the first quarter with a really
107 00:05:26.800 --> 00:05:29.900 sort of wild trip of markets shooting
108 00:05:29.900 --> 00:05:32.500 up coming back down a lot of volatility a lot
109 00:05:32.500 --> 00:05:35.400 of fear injected in markets in March with the
110 00:05:35.400 --> 00:05:38.300 headlines and yet at the end of the quarter you finished up
111 00:05:38.300 --> 00:05:41.900 pretty again pretty solidly across
112 00:05:41.900 --> 00:05:45.000 us markets International Development markets emerging
113 00:05:44.400 --> 00:05:47.700 markets in fixed income inequities, right?
114 00:05:47.700 --> 00:05:50.400 We it was a it was a pretty decent first
115 00:05:50.400 --> 00:05:53.800 quarter from a return perspective despite all of that. Yeah sure.
116 00:05:53.800 --> 00:05:56.000 It was like it's a very interesting quarter.
117 00:05:56.100 --> 00:05:59.200 And I'd like the way you put it on the things the kind of the Resurgence of
118 00:05:59.200 --> 00:06:03.100 these tech companies that didn't have a great year last year, but you're
119 00:06:02.100 --> 00:06:05.500 seeing asset classes such as the energy
120 00:06:05.500 --> 00:06:08.600 sector right who had a great year last year is to
121 00:06:08.600 --> 00:06:11.300 use your your term of aversion to the mean right? They had
122 00:06:11.300 --> 00:06:14.500 a tough time in the first quarter, right? Yeah. Yeah and and frankly
123 00:06:14.500 --> 00:06:18.200 prices have been coming down in oil and gas pretty
124 00:06:17.200 --> 00:06:18.800 consistently.
125 00:06:19.200 --> 00:06:22.800 Since last fall so we did see a continuation of that. I
126 00:06:22.800 --> 00:06:27.300 do think and likely there's
127 00:06:26.300 --> 00:06:29.200 more conversation to be had
128 00:06:29.200 --> 00:06:32.900 around this but the concern that I have or
129 00:06:32.900 --> 00:06:35.500 or would have based on
130 00:06:35.500 --> 00:06:38.600 how markets performed in the first quarter is that
131 00:06:38.600 --> 00:06:41.900 it was so dominated by a
132 00:06:41.900 --> 00:06:44.100 handful of names, right? We we've seen
133 00:06:44.100 --> 00:06:47.300 this Dynamic before where we're
134 00:06:47.300 --> 00:06:51.000 sort of the top largest growth Tech
135 00:06:50.300 --> 00:06:53.800 names sort of dominate performance
136 00:06:53.800 --> 00:06:56.500 of the market and we and we saw that again in
137 00:06:56.500 --> 00:07:01.500 the first quarter right? You think about Facebook alphabet
138 00:07:00.500 --> 00:07:04.700 Apple Google Netflix, right?
139 00:07:03.700 --> 00:07:06.500 All of those firms were
140 00:07:06.500 --> 00:07:09.500 really been challenged in 2022 had a
141 00:07:09.500 --> 00:07:12.300 nice Resurgence across the first quarter, but when
142 00:07:12.300 --> 00:07:16.000 you dig deeper into the performance particularly here domestically what
143 00:07:15.200 --> 00:07:18.900 you see is they were the lion
144 00:07:19.100 --> 00:07:22.400 Care of that return that we saw the market it was once again
145 00:07:22.400 --> 00:07:27.100 the fact that these top handful of names represent twenty
146 00:07:25.100 --> 00:07:28.600 plus percent of the overall
147 00:07:28.600 --> 00:07:32.000 market, right? So think S&P 500 has got ostensibly 500
148 00:07:31.500 --> 00:07:34.700 names in it the top 10 names
149 00:07:34.700 --> 00:07:38.000 accounted for all at
150 00:07:37.100 --> 00:07:40.400 least 80% of that return right the
151 00:07:40.400 --> 00:07:43.300 top top five names half of it, right? So so
152 00:07:43.300 --> 00:07:46.400 again, you're getting a lot of that return concentrated in
153 00:07:46.400 --> 00:07:47.000 these names.
154 00:07:47.900 --> 00:07:51.600 Because they're so large disproportionately to
155 00:07:50.600 --> 00:07:55.200 the other names in those indices
156 00:07:54.200 --> 00:07:57.300 and it lit. It's the rising tide lifting
157 00:07:57.300 --> 00:08:00.200 all boats, but the concern that you
158 00:08:00.200 --> 00:08:03.100 have with that and we saw that in 2022 when the
159 00:08:03.100 --> 00:08:06.600 air goes out of the balloon to a degree. Well that
160 00:08:06.600 --> 00:08:09.500 can be a double-edged sword. Right if those names start
161 00:08:09.500 --> 00:08:13.000 to pull back in valuations, you
162 00:08:12.300 --> 00:08:15.400 could see that turn around and become an anchor pulling
163 00:08:15.400 --> 00:08:19.000 markets down, right and that can happen very quickly just based
164 00:08:18.100 --> 00:08:21.600 on the fact that it's so concentrated in a
165 00:08:21.600 --> 00:08:24.000 handful of names that are all sort of in the
166 00:08:24.300 --> 00:08:27.100 same kind of economic Waters right in terms of kind of
167 00:08:27.100 --> 00:08:30.600 this large growth Tech, you know richly valued.
168 00:08:30.600 --> 00:08:33.100 Yeah. It sounds a lot like me, you know, I've
169 00:08:33.100 --> 00:08:37.200 had these conversations over the years even going back before 2022
170 00:08:36.200 --> 00:08:39.700 coming out of the pandemic
171 00:08:39.700 --> 00:08:42.300 and those tech stocks. They were the story they were leading
172 00:08:42.300 --> 00:08:45.400 the charge and what I'm hearing you say, is that sort
173 00:08:45.400 --> 00:08:47.800 of the casing q1, but that double-ed
174 00:08:47.800 --> 00:08:50.700 word is just going back 2022 would
175 00:08:50.700 --> 00:08:53.700 be an example of if you're not well Diversified
176 00:08:53.700 --> 00:08:56.800 that could be a painful experience it can and I'm
177 00:08:56.800 --> 00:08:57.900 I'm reminded of
178 00:08:59.300 --> 00:09:02.400 The experience that we had coming out of the tech bubble,
179 00:09:02.400 --> 00:09:05.300 right? So if you think about if in fact
180 00:09:05.300 --> 00:09:08.300 the run-up invaluations in this sort of handful of
181 00:09:08.300 --> 00:09:11.400 techniques is analogous to what we saw in
182 00:09:11.400 --> 00:09:12.000 the late 90s.
183 00:09:14.200 --> 00:09:17.300 They were so richly valued that when the
184 00:09:17.300 --> 00:09:20.600 tech Bubble Burst it took a decade the Lost
185 00:09:20.600 --> 00:09:24.200 decade right of just you know, subpar returns
186 00:09:23.200 --> 00:09:26.300 for the valuations to get
187 00:09:26.300 --> 00:09:29.500 back to a place where markets could then start
188 00:09:29.500 --> 00:09:32.400 to take off again. And so the concern that
189 00:09:32.400 --> 00:09:36.200 that one might have is valuations are
190 00:09:35.200 --> 00:09:40.400 still Rich, right? Even after 2022 on
191 00:09:39.400 --> 00:09:43.200 a Price to Book basis very
192 00:09:42.200 --> 00:09:45.600 expensive on a price to
193 00:09:45.600 --> 00:09:50.500 forward earnings basis. It's expensive and
194 00:09:48.500 --> 00:09:51.600 so it's not
195 00:09:51.600 --> 00:09:54.600 as if these are our Bargains to
196 00:09:54.600 --> 00:09:57.800 be had in a Marketplace that that's discounting
197 00:09:57.800 --> 00:10:00.700 them. They are still incredibly expensive. And so
198 00:10:00.700 --> 00:10:03.400 anything that goes wrong right if the
199 00:10:03.400 --> 00:10:06.300 if in fact the economy runs into turbulence at
200 00:10:06.300 --> 00:10:09.700 some point or the expectations for growth, I mean,
201 00:10:09.700 --> 00:10:12.600 you know, we're in earning season and Netflix had sort
202 00:10:12.600 --> 00:10:14.100 of positive numbers, but
203 00:10:14.100 --> 00:10:17.700 They sort of gave lackluster guidance for next quarters
204 00:10:17.700 --> 00:10:20.400 growth. Right? So all you need is for for Market
205 00:10:20.400 --> 00:10:23.400 participants to to a once again sour on the
206 00:10:23.400 --> 00:10:27.400 prospects of these names and you're right back to it's
207 00:10:26.400 --> 00:10:29.300 too too rich like I'm paying
208 00:10:29.300 --> 00:10:32.500 too much today for for earnings in
209 00:10:32.500 --> 00:10:35.100 the future that may or may not materialize right? And so
210 00:10:35.100 --> 00:10:38.700 I've got to pay less and so the price has to come down. Yeah, right. And
211 00:10:38.700 --> 00:10:41.300 again, I'm not suggesting that we have a lost decade
212 00:10:41.300 --> 00:10:44.200 in front of us, but this potentially room to run
213 00:10:44.200 --> 00:10:48.300 if markets turn and I think that's the the concern that
214 00:10:47.300 --> 00:10:50.100 I would share with investors. That's what I
215 00:10:50.100 --> 00:10:53.500 prepare them for. Hey, we'll take what we get. Right? We're happy
216 00:10:53.500 --> 00:10:54.700 to get those returns, but
217 00:10:56.200 --> 00:10:59.500 This could still be valve this this, you know, we're in the third inning potentially
218 00:10:59.500 --> 00:11:02.900 look or fourth ending. There's a lot of game left and we're
219 00:11:02.900 --> 00:11:05.000 just gonna buckle up and be ready for it. Yeah, and what is
220 00:11:05.300 --> 00:11:09.200 interesting what this quarter and you detect upon that I'd love to get your thoughts developed International
221 00:11:08.200 --> 00:11:11.300 to having a very good quarter.
222 00:11:11.300 --> 00:11:14.400 I mean when we saw these large Tech
223 00:11:14.400 --> 00:11:17.600 names and in the past when they had their run prior to 2022, it
224 00:11:17.600 --> 00:11:20.600 was a pretty much us dominated run up.
225 00:11:21.800 --> 00:11:24.500 Give us some commentary on what we're saying in the developed International
226 00:11:24.500 --> 00:11:27.100 Space. Yeah, I think some of
227 00:11:27.100 --> 00:11:31.600 it is the Resurgence of the
228 00:11:32.900 --> 00:11:35.700 strength of the sort
229 00:11:35.700 --> 00:11:38.200 of the the companies that are there that have
230 00:11:38.200 --> 00:11:42.000 sort of suffered through a decade of kind of sub-par performance
231 00:11:41.300 --> 00:11:45.400 and they were in a much stronger financial
232 00:11:44.400 --> 00:11:47.300 position. Then they
233 00:11:47.300 --> 00:11:51.300 were for instance going into the global financial crisis, right and they
234 00:11:50.300 --> 00:11:53.700 weren't super expensive. Right?
235 00:11:53.700 --> 00:11:58.100 So from a perspective of they were kind of relatively cheaply
236 00:11:56.100 --> 00:11:59.100 priced compared to
237 00:11:59.100 --> 00:12:02.500 US stocks. And so if we look at just the performance
238 00:12:02.500 --> 00:12:06.100 the they don't have to have that much right
239 00:12:05.100 --> 00:12:09.300 surprise upside.
240 00:12:10.300 --> 00:12:14.300 To have nice performance right across the board or
241 00:12:13.300 --> 00:12:16.200 relatively decent performs.
242 00:12:16.700 --> 00:12:19.800 So I think people were pleasantly surprised by
243 00:12:19.800 --> 00:12:23.500 some of the financial resilience in
244 00:12:22.500 --> 00:12:25.200 Europe particularly coming out of
245 00:12:25.200 --> 00:12:28.900 the effects of the the Russian Ukraine
246 00:12:28.900 --> 00:12:31.600 conflict and looking at the impact that
247 00:12:31.600 --> 00:12:34.500 for instance the the price of gas price
248 00:12:34.500 --> 00:12:37.100 of oil I had in places like Germany and the fact
249 00:12:37.100 --> 00:12:40.300 that they sort of got through that not unscathed but
250 00:12:40.300 --> 00:12:43.700 you know, the the avoided the apocalypse
251 00:12:43.700 --> 00:12:47.000 right the gasoline apocalypse over the course of the
252 00:12:46.600 --> 00:12:49.300 winter right that it was relatively mild. So
253 00:12:49.300 --> 00:12:52.600 I think that from that perspective markets sort
254 00:12:52.600 --> 00:12:55.600 of said rewarded International developed
255 00:12:55.600 --> 00:12:58.900 businesses with valuations that
256 00:12:58.900 --> 00:13:01.400 seemed a little more reasonable than the
257 00:13:01.400 --> 00:13:04.000 valuations in the US. Yeah, that makes a lot of sense and thank you
258 00:13:04.200 --> 00:13:07.900 for that. Yeah, and and I would call I would suggest that
259 00:13:07.900 --> 00:13:10.200 Emerging Markets are in a similar but
260 00:13:10.200 --> 00:13:14.300 different position right again a little more financially
261 00:13:13.300 --> 00:13:16.300 robust in terms of the underpinnings.
262 00:13:17.300 --> 00:13:20.100 Of those companies relative to where we've seen Cycles where people
263 00:13:20.100 --> 00:13:23.100 are risk off and and sort of beating down
264 00:13:23.100 --> 00:13:26.200 in price. I think anytime you have a lot of volatility people are
265 00:13:26.200 --> 00:13:29.700 hesitant to take a bunch of risk. So Emerging Markets
266 00:13:29.700 --> 00:13:32.800 could be a little more volatile as you would expect but
267 00:13:32.800 --> 00:13:35.100 I think from evaluation standpoint there's room to run
268 00:13:35.100 --> 00:13:38.600 as well over time relative to the US let's let's
269 00:13:38.600 --> 00:13:41.300 look at the other side of the coin and talk a
270 00:13:41.300 --> 00:13:44.500 little bit about bonds because that's been quite the Hot Topic lately. We've been
271 00:13:44.500 --> 00:13:47.900 getting a lot of inquiries from advisors and investors alike
272 00:13:47.900 --> 00:13:50.700 about the fixed income market. So give us
273 00:13:50.700 --> 00:13:52.300 a little perspective of what's happening in.
274 00:13:53.500 --> 00:13:57.300 Global fixed income right? Well, if you recall 2022
275 00:13:56.300 --> 00:13:59.500 was a historically bad year
276 00:13:59.500 --> 00:14:02.900 for Boston certainly, right as as fed as
277 00:14:02.900 --> 00:14:05.500 the FED raised interest rates are not just the FED but central banks
278 00:14:05.500 --> 00:14:08.500 essentially around the world except for the Asian
279 00:14:08.500 --> 00:14:11.100 China and Japan those central banks not quite
280 00:14:11.100 --> 00:14:14.600 as much but globally central banks at the
281 00:14:14.600 --> 00:14:17.600 impact of course of challenging the yield right
282 00:14:17.600 --> 00:14:20.900 and as we know yield in price or are sort of inverse Lee
283 00:14:20.900 --> 00:14:23.300 related and so as yield was pushed up by raising
284 00:14:23.300 --> 00:14:26.900 rates price came down and and it had a pretty dramatic
285 00:14:26.900 --> 00:14:29.900 impact across the yield curve
286 00:14:29.900 --> 00:14:32.400 and that was globally as well the United
287 00:14:32.400 --> 00:14:32.400 States.
288 00:14:33.200 --> 00:14:36.400 2022 pretty much a very bad. No good year for
289 00:14:36.400 --> 00:14:39.400 Bond holders rolling into the first quarter
290 00:14:39.400 --> 00:14:42.400 a lot of those same sort of macro dynamics that
291 00:14:42.400 --> 00:14:45.400 we talked about with equities was
292 00:14:45.400 --> 00:14:48.500 true to fix income as well the expectation the bond
293 00:14:48.500 --> 00:14:51.800 market pricing that they think the FED will essentially
294 00:14:51.800 --> 00:14:54.600 be done at some point this year raising rates
295 00:14:54.600 --> 00:14:58.100 had the impact of markets rallying
296 00:14:57.100 --> 00:15:01.300 to a degree and then of course when there
297 00:15:00.300 --> 00:15:04.100 was volatility injected because of banking issues
298 00:15:03.100 --> 00:15:07.300 you continued to see a pullback
299 00:15:06.300 --> 00:15:09.700 on the the yield
300 00:15:09.700 --> 00:15:13.000 right? So at at some points we saw for instance
301 00:15:12.200 --> 00:15:15.400 the the 10 year get up over four and we
302 00:15:15.400 --> 00:15:18.500 saw a pullback as yields come down then of course prices go
303 00:15:18.500 --> 00:15:21.400 up. And so you saw a nice robust kind of response over
304 00:15:21.400 --> 00:15:24.500 the first quarter of prices coming up for bonds that had
305 00:15:24.500 --> 00:15:27.500 the impact and that was true for treasuries and corporates
306 00:15:27.500 --> 00:15:30.400 and international bonds, right? So across the
307 00:15:30.400 --> 00:15:32.900 Spectrum you had sort of a nice performance.
308 00:15:33.300 --> 00:15:37.100 For bonds for the first quarter. And again, it's unusual
309 00:15:36.100 --> 00:15:39.400 for fixed income and Equity to look and
310 00:15:39.400 --> 00:15:42.100 behave very similarly. That was one of
311 00:15:42.100 --> 00:15:45.700 the things that was so unusual about 2022, but there's still
312 00:15:45.700 --> 00:15:48.500 sort of Behaving the same way based on the same Outlook
313 00:15:48.500 --> 00:15:51.500 that at some point interest rates stop going up
314 00:15:51.500 --> 00:15:54.500 or stop getting ratcheted up by central banks.
315 00:15:54.500 --> 00:15:57.100 And so that Dynamic is is kind of
316 00:15:57.100 --> 00:16:00.700 floating all the boats to this degree and so
317 00:16:00.700 --> 00:16:03.500 fixed income has had a robust first quarter.
318 00:16:04.400 --> 00:16:07.700 Remains to be seen how the rest of the year plays
319 00:16:07.700 --> 00:16:10.400 out and and you know, frankly we
320 00:16:10.400 --> 00:16:13.200 continued to see the a deep
321 00:16:13.200 --> 00:16:16.200 inversion in the yield curve, especially at the
322 00:16:16.200 --> 00:16:19.100 very shortest end of the O curve relative to the
323 00:16:19.100 --> 00:16:22.700 10 year. And as you know that has historically sort
324 00:16:22.700 --> 00:16:25.300 of been a warning sign of
325 00:16:25.300 --> 00:16:28.600 potential economic stress recessions right
326 00:16:28.600 --> 00:16:32.100 as an indicator and it has remained it
327 00:16:31.100 --> 00:16:34.100 inverted for some time now
328 00:16:34.100 --> 00:16:37.900 and that inversion has only gotten deeper on the shortest end. So,
329 00:16:37.900 --> 00:16:40.200 you know again you would want to continue
330 00:16:40.200 --> 00:16:43.700 to watch that and be cognizant of it. I think the takeaway
331 00:16:43.700 --> 00:16:46.500 from this is much like with equities. It's best
332 00:16:46.500 --> 00:16:49.200 to be sort of broad based Diversified. You never
333 00:16:49.200 --> 00:16:53.000 know what part of the Yoke curve is gonna move relative to this and
334 00:16:52.900 --> 00:16:56.800 it's good to have exposure
335 00:16:55.800 --> 00:16:58.600 not just us treasuries, but
336 00:16:58.600 --> 00:17:01.200 the corporates and not just us bonds, but the international
337 00:17:01.200 --> 00:17:04.300 bonds that there are benefits built into the pricing of all
338 00:17:04.900 --> 00:17:08.400 And as we start to see a decoupling of Central
339 00:17:07.400 --> 00:17:10.400 Bank activity, yes, they've been
340 00:17:10.400 --> 00:17:13.700 acting pretty much in concert, but at some point central banks
341 00:17:13.700 --> 00:17:16.800 start to peel off right and they get back to focusing on
342 00:17:16.800 --> 00:17:19.100 the handling kind of
343 00:17:19.100 --> 00:17:22.300 their domestic concerns. And as they do that it will
344 00:17:22.300 --> 00:17:25.600 have varying diversification impacts for bonds
345 00:17:25.600 --> 00:17:28.500 around the globe the way stocks and bonds behaves
346 00:17:28.500 --> 00:17:31.300 in 2022 with similar and then into this quarter. We're
347 00:17:31.300 --> 00:17:34.500 seeing some decent returns globally across those two
348 00:17:34.500 --> 00:17:37.800 macro asset classes. We're seeing
349 00:17:37.800 --> 00:17:40.300 some of a mixed bag that last Factor investors
350 00:17:40.300 --> 00:17:43.400 from a factor perspective, right? But let's
351 00:17:43.400 --> 00:17:46.200 shift a little bit and talk about factors for a moment.
352 00:17:46.200 --> 00:17:49.300 We're a factor investors are listeners The Avengers that
353 00:17:49.300 --> 00:17:52.300 we work with our have clients invested in
354 00:17:52.300 --> 00:17:55.500 these Factor portfolios. What did we see from a factor standpoint
355 00:17:55.500 --> 00:17:58.800 in the first quarter of 2023 if
356 00:17:58.800 --> 00:18:01.400 you think about the factor of value, it's just the the
357 00:18:01.400 --> 00:18:04.300 cheaper stocks outperform the more expensive stocks over time and as
358 00:18:04.300 --> 00:18:04.500 you know,
359 00:18:04.800 --> 00:18:07.800 We had a long run where that wasn't true. Right we're
360 00:18:07.800 --> 00:18:10.300 growth stocks were just outperforming value to the
361 00:18:10.300 --> 00:18:13.200 point that everybody was sort of Naval gazing wondering his value
362 00:18:13.200 --> 00:18:16.800 dead. Does this even make sense anymore? And and what
363 00:18:16.800 --> 00:18:19.400 we sort of looking at it determined was
364 00:18:19.400 --> 00:18:22.400 no actually values kind of in line with what it's always done. It's
365 00:18:22.400 --> 00:18:25.300 growth. That's so unusual. Yeah, right and that we're
366 00:18:25.300 --> 00:18:28.300 back to the story about the large tech stocks and get over evaluation. Right?
367 00:18:28.300 --> 00:18:31.900 And so last year was a great year for Value, right? Even
368 00:18:31.900 --> 00:18:34.500 though it was down right value outperform growth
369 00:18:34.500 --> 00:18:37.800 by a good 20% Oh, yeah, absolutely and it
370 00:18:37.800 --> 00:18:40.700 was sort of that Snapback to recognition of
371 00:18:40.700 --> 00:18:43.300 hey one of my paying for right and and these things
372 00:18:43.300 --> 00:18:46.200 have gotten incredibly overvalued on the
373 00:18:46.200 --> 00:18:46.600 growth side.
374 00:18:47.300 --> 00:18:50.500 And so it shouldn't come as a surprise then if there's a reversal of
375 00:18:50.500 --> 00:18:53.600 that Dynamic that value might underperform growth
376 00:18:53.600 --> 00:18:56.500 over the first quarter. And of course, that's what we observed right
377 00:18:56.500 --> 00:18:59.300 that value underperformed growth. It was
378 00:18:59.300 --> 00:19:02.300 those large kind of growthy names that took off and and so that
379 00:19:02.300 --> 00:19:05.700 that factor shows up and demonstrates
380 00:19:05.700 --> 00:19:08.300 that thighs right. So again kind of
381 00:19:08.300 --> 00:19:11.600 the academic research that smaller cap
382 00:19:11.600 --> 00:19:14.400 names tend to outperform larger cab
383 00:19:14.400 --> 00:19:17.800 names over time rolling into the first quarter large
384 00:19:17.800 --> 00:19:20.500 caps outperform small caps, right again being led
385 00:19:20.500 --> 00:19:23.500 by that large growthy and so small caps
386 00:19:23.500 --> 00:19:26.800 tended to underperform in general. What's interesting
387 00:19:26.800 --> 00:19:29.300 is across factor is
388 00:19:29.300 --> 00:19:32.300 one of the reasons you want to hold small caps isn't necessarily the size
389 00:19:32.300 --> 00:19:35.300 Factor premium associated with that because
390 00:19:35.300 --> 00:19:38.700 that's come under some scrutiny of
391 00:19:38.700 --> 00:19:41.400 Lee as academics kind of look at that. Say what
392 00:19:41.400 --> 00:19:42.200 do we actually getting here?
393 00:19:42.900 --> 00:19:46.000 But what really expresses itself
394 00:19:45.300 --> 00:19:48.500 in small camp names or all the other factors, right? So
395 00:19:48.500 --> 00:19:51.100 the reason you'd want to hold a small cap is not just
396 00:19:51.100 --> 00:19:54.200 because you get a benefit versus large caps, but because you get
397 00:19:54.200 --> 00:19:57.600 a really strong value signal a really strong momentum really
398 00:19:57.600 --> 00:20:00.200 strong quality, right all of these things. And so if we
399 00:20:00.200 --> 00:20:03.300 look at small caps the performance of small caps for
400 00:20:03.300 --> 00:20:06.700 the first quarter, you actually got to really strong quality signal
401 00:20:06.700 --> 00:20:09.700 in small caps. So again a reason
402 00:20:09.700 --> 00:20:12.400 why you want to have a multiple exposures for your
403 00:20:12.400 --> 00:20:15.400 factors not just pick any one of these right so small
404 00:20:15.400 --> 00:20:18.400 caps under form large caps, but quality did really well inside
405 00:20:18.400 --> 00:20:21.300 small camps that makes up the next category is
406 00:20:21.300 --> 00:20:24.400 momentum. And what's interesting about markets that are sort of
407 00:20:24.400 --> 00:20:27.500 whipsawing one way or the other that momentum tends to
408 00:20:27.500 --> 00:20:30.400 have a tougher time in markets where the signal is really
409 00:20:30.400 --> 00:20:33.100 hard to pick up where there's a lot of whipsawing effect up and down on the
410 00:20:33.100 --> 00:20:37.000 other way momentum tends to kind of get whipped around with that.
411 00:20:37.700 --> 00:20:40.200 Eventually when markets start to pick
412 00:20:40.200 --> 00:20:43.300 up Trend whether that's down for a significant period of
413 00:20:43.300 --> 00:20:46.500 time like in 2022 momentum does well or up right
414 00:20:46.500 --> 00:20:50.000 for a significant period of time and so you
415 00:20:49.200 --> 00:20:52.400 would expect momentum to kind
416 00:20:52.400 --> 00:20:55.400 of settle down as markets kind of settle down
417 00:20:55.400 --> 00:20:59.600 and we see less whipsawing and more directionality. However, and
418 00:20:59.600 --> 00:21:03.300 I mentioned it earlier with small caps quality this idea
419 00:21:02.300 --> 00:21:05.000 that there may be
420 00:21:05.200 --> 00:21:08.800 a flight to Quality in times when the
421 00:21:08.800 --> 00:21:11.100 there's a lot of volatility. Well one of the
422 00:21:11.100 --> 00:21:14.800 reasons you see that is because higher quality earnings tend to
423 00:21:14.800 --> 00:21:17.400 hold up better in downturns. They have a premium
424 00:21:17.400 --> 00:21:21.300 associated with them and we saw that very clearly quality
425 00:21:20.300 --> 00:21:23.200 was one of the areas that outperformed the market
426 00:21:23.200 --> 00:21:26.200 over the first quarter and that was true not just in the
427 00:21:26.200 --> 00:21:30.200 US but internationally as well interestingly in
428 00:21:29.200 --> 00:21:33.500 Emerging Markets value quality
429 00:21:32.500 --> 00:21:35.600 and low volatility did quite
430 00:21:35.600 --> 00:21:37.600 well so value was still doing well in emerging.
431 00:21:37.700 --> 00:21:40.700 Markets again a reason why you'd want to diversify
432 00:21:40.700 --> 00:21:43.400 your Factor exposures not just in the US but
433 00:21:43.400 --> 00:21:46.900 internationally as well and minimum volatility was
434 00:21:46.900 --> 00:21:49.800 a contributor in us but lagged Market
435 00:21:49.800 --> 00:21:52.500 beta on the whole a broadly
436 00:21:52.500 --> 00:21:55.900 Diversified Factor exposure was I'd
437 00:21:55.900 --> 00:21:58.700 say depending on what your tilts are helpful on
438 00:21:58.700 --> 00:22:02.200 the downside when Market was volatile, but lagged
439 00:22:01.200 --> 00:22:04.900 Market beta to a degree for the
440 00:22:04.900 --> 00:22:07.500 first quarter where it outperformed in
441 00:22:07.500 --> 00:22:10.400 2022. So again factors are a
442 00:22:10.400 --> 00:22:13.500 long term investment. You wouldn't do it on based
443 00:22:13.500 --> 00:22:16.700 on one quarter, but we we watch the horse race, right? Yeah.
444 00:22:16.700 --> 00:22:19.200 Absolutely and I think a point that you
445 00:22:19.200 --> 00:22:22.400 you said that really resonated with me is the notion of how these factors work
446 00:22:22.400 --> 00:22:25.800 together right size and quality you mentioned
447 00:22:25.800 --> 00:22:29.200 and so having a diverse portfolio
448 00:22:28.200 --> 00:22:30.700 of integrated factors.
449 00:22:31.500 --> 00:22:32.800 maintaining that for the long term
450 00:22:34.200 --> 00:22:37.400 Should reward you over the long term. Yeah, and that's the
451 00:22:37.400 --> 00:22:40.800 expectation. There are lots of factors out
452 00:22:40.800 --> 00:22:43.800 there that have been identified in the academic literature when you
453 00:22:43.800 --> 00:22:46.400 selectively go out and pick a handful of
454 00:22:46.400 --> 00:22:49.500 those factors. The expectation is every single
455 00:22:49.500 --> 00:22:52.500 one of those is going to be a positive contributor to
456 00:22:52.500 --> 00:22:55.400 your portfolio over time, right you you
457 00:22:55.400 --> 00:22:58.300 wouldn't necessarily pick one that you thought. Well, it's gonna be a loser but we're gonna hold on
458 00:22:58.300 --> 00:23:01.100 to it, right you're picking all of these different factors of the
459 00:23:01.100 --> 00:23:04.700 expectation that each one of those is going to be a
460 00:23:04.700 --> 00:23:07.300 positive contributor over a period of time when you
461 00:23:07.300 --> 00:23:10.400 weave them together you sort of iron out
462 00:23:10.400 --> 00:23:13.400 the highs and lows of any one particular factor and
463 00:23:13.400 --> 00:23:17.100 you get that very nice steady stream of
464 00:23:16.100 --> 00:23:19.500 return into your
465 00:23:19.500 --> 00:23:22.300 portfolio. That's generated by those Factor exposures. Yeah.
466 00:23:22.300 --> 00:23:25.400 It's the old the old adage we're going for singles and doubles
467 00:23:25.400 --> 00:23:28.200 not home runs, right? Yeah. Yeah exactly. So let's
468 00:23:28.200 --> 00:23:31.200 talk a little bit about factors and fixed income and then
469 00:23:31.200 --> 00:23:34.100 we can take a look at some of the the factors overseas.
470 00:23:34.100 --> 00:23:37.800 As well, but I do want to spend some time on some of
471 00:23:37.800 --> 00:23:40.100 the headlines. So why don't we
472 00:23:40.100 --> 00:23:44.000 talk a little bit about us fixed income factors? Sure. So
473 00:23:43.600 --> 00:23:46.200 as you know, right fat factors are
474 00:23:46.200 --> 00:23:49.800 not an equity only thing. In fact, we see factors across
475 00:23:49.800 --> 00:23:53.600 all different kinds of assets fixed income Commodities
476 00:23:52.600 --> 00:23:55.400 housing real
477 00:23:55.400 --> 00:23:58.400 estate, right all these I the concept of value for
478 00:23:58.400 --> 00:24:01.500 instance and the concept of momentum right anything that has a price associated
479 00:24:01.500 --> 00:24:04.400 with it stores can demonstrate these sort of
480 00:24:04.400 --> 00:24:07.200 factors. And that's true. In fact fixed income the way we
481 00:24:07.200 --> 00:24:10.400 think about factors and fixed incomes specifically is is kind
482 00:24:10.400 --> 00:24:13.400 of interest rate risk, which is time, right? So think
483 00:24:13.400 --> 00:24:17.300 about what we talked about with the yield curve inversion
484 00:24:16.300 --> 00:24:19.400 and what was going on on the short end versus the
485 00:24:19.400 --> 00:24:23.500 long end what we've observed in the
486 00:24:23.500 --> 00:24:26.200 past. Let's call year was a really
487 00:24:26.200 --> 00:24:29.800 strong interest rate risk lack
488 00:24:29.800 --> 00:24:32.600 of benefit that you got for sort of being paid
489 00:24:32.600 --> 00:24:34.000 over time, right?
490 00:24:34.100 --> 00:24:38.300 And in theory, right you should get paid to hold
491 00:24:37.300 --> 00:24:41.100 over time because there's less certainty
492 00:24:40.100 --> 00:24:43.500 about what the future holds so you demand a
493 00:24:43.500 --> 00:24:46.800 premium to hold something over time to lend over time. And
494 00:24:46.800 --> 00:24:49.200 so when you have the short end
495 00:24:49.200 --> 00:24:52.500 of the curve come up that tends to impact that interest
496 00:24:52.500 --> 00:24:55.500 rate sets that risk that sensitivity because you're
497 00:24:55.500 --> 00:24:58.800 not getting paid over time. You're getting paid actually on the
498 00:24:58.800 --> 00:25:01.700 the shorter end potentially. So when you
499 00:25:01.700 --> 00:25:04.800 see a pullback of rates,
500 00:25:04.800 --> 00:25:07.700 right and price is going up you're seeing
501 00:25:07.700 --> 00:25:10.800 that benefit playing out through the first quarter as well credit risk
502 00:25:10.800 --> 00:25:13.300 is just the difference the buildup over
503 00:25:13.300 --> 00:25:16.300 the risk free rate treasuries to account
504 00:25:16.300 --> 00:25:19.200 for hey, you know a corporation has more risk than a government
505 00:25:19.200 --> 00:25:22.500 and I should be paid that difference. And so you're investing
506 00:25:22.500 --> 00:25:25.200 up and down the various yield curves that
507 00:25:25.200 --> 00:25:28.900 build up on that and in this case credit risk really as
508 00:25:28.900 --> 00:25:31.900 a factor wasn't a very solid contributor
509 00:25:31.900 --> 00:25:33.200 for the first quarter slightly positive.
510 00:25:34.100 --> 00:25:37.200 The the show really has been frankly for the
511 00:25:37.200 --> 00:25:40.500 past 18 months were interest rate risk is in
512 00:25:40.500 --> 00:25:43.500 terms of factor Premia in your portfolios.
513 00:25:43.500 --> 00:25:46.500 And then Market is is again just Market
514 00:25:46.500 --> 00:25:49.800 beta which is a buildup of all these different factors expressing themselves.
515 00:25:49.800 --> 00:25:53.200 So on the whole positive Bond performance
516 00:25:52.200 --> 00:25:55.500 being driven by changes to
517 00:25:55.500 --> 00:25:59.500 the the yield curve in many cases and some
518 00:25:58.500 --> 00:26:01.400 expectation that Bond markets are looking ahead
519 00:26:01.400 --> 00:26:04.600 and pricing for a cessation of rate raises
520 00:26:04.600 --> 00:26:07.500 by central banks. So so my expectation would
521 00:26:07.500 --> 00:26:10.200 be for for fixed income investors again much like
522 00:26:10.200 --> 00:26:13.400 Equity potentially more volatility here, right? The
523 00:26:13.400 --> 00:26:16.400 the rodeo is not over the big bull riding
524 00:26:16.400 --> 00:26:18.200 could yet be to come so
525 00:26:19.200 --> 00:26:22.400 You know stay patient the the benefit here is
526 00:26:22.400 --> 00:26:25.400 there's return associated with fixed income
527 00:26:25.400 --> 00:26:29.500 to a degree. We haven't seen in 15 years. And so
528 00:26:29.500 --> 00:26:32.700 let this play out. And again, these Factor
529 00:26:32.700 --> 00:26:35.600 exposures are the expectation is over time. These are
530 00:26:35.600 --> 00:26:38.100 going to be a additive to the returns that you
531 00:26:38.100 --> 00:26:40.700 get from the bond market you had mentioned this in some of your previous comments.
532 00:26:42.500 --> 00:26:45.400 Factors perform differently geographically too
533 00:26:45.400 --> 00:26:48.500 right like value in the US might give you a different return
534 00:26:48.500 --> 00:26:51.300 versus value and the international develop during the
535 00:26:51.300 --> 00:26:54.500 Emerging Markets Arenas. So I think there's diversification story
536 00:26:54.500 --> 00:26:57.600 there. Can you comment on that, please? Yeah. Well, yes, of
537 00:26:57.600 --> 00:27:00.100 course and and I sort of made a comment
538 00:27:00.100 --> 00:27:01.300 about as
539 00:27:02.300 --> 00:27:05.500 central banks become decoupled and start to operate a
540 00:27:05.500 --> 00:27:09.000 little more independently that it has an impact on the
541 00:27:11.300 --> 00:27:14.600 local economies in all of these different markets as
542 00:27:14.600 --> 00:27:17.200 an impact on their currencies. And so
543 00:27:17.200 --> 00:27:20.600 when you think about fixed income the benefit that you get from
544 00:27:20.600 --> 00:27:23.300 not only where you hold on
545 00:27:23.300 --> 00:27:26.500 the curve and and the amount of credit that you're willing but that
546 00:27:26.500 --> 00:27:29.900 you're going to diversify the various curves
547 00:27:29.900 --> 00:27:32.300 that you hold and the where you
548 00:27:32.300 --> 00:27:35.900 are on that across geographies and
549 00:27:35.900 --> 00:27:38.200 then take into account the impact that
550 00:27:38.200 --> 00:27:42.200 currencies might have right and so we know for equities
551 00:27:41.200 --> 00:27:45.100 the the volatility signature
552 00:27:44.100 --> 00:27:47.100 of equity is is so robust that
553 00:27:47.100 --> 00:27:50.600 you're you tend to be willing to hold the volatility of
554 00:27:50.600 --> 00:27:53.900 fluctuations and currency in in
555 00:27:53.900 --> 00:27:56.000 fixed income. It tends not to pay you to do
556 00:27:56.200 --> 00:27:59.400 that. And so I know for instance
557 00:27:59.400 --> 00:28:03.100 that here at Cemetery you folks hedge back
558 00:28:03.100 --> 00:28:07.000 to the dollar sure and that takes some of that volatility out,
559 00:28:06.600 --> 00:28:09.400 right? And again, I think that's a benefit
560 00:28:09.400 --> 00:28:11.000 for Factor investors because what you're
561 00:28:11.200 --> 00:28:14.300 Is less volatility associated with fluctuations currency and
562 00:28:14.300 --> 00:28:18.000 you're getting maybe stronger signal from these these
563 00:28:17.200 --> 00:28:20.900 different sources of return across
564 00:28:20.900 --> 00:28:23.400 different markets and they're all going to be hitting at
565 00:28:23.400 --> 00:28:26.700 different times. Once the sort of the global economy
566 00:28:26.700 --> 00:28:29.200 comes unpegged to what's going
567 00:28:29.200 --> 00:28:33.100 on fighting inflation. Yeah until I think it's a perfect diversification story
568 00:28:32.100 --> 00:28:33.300 and
569 00:28:34.100 --> 00:28:37.600 we have a saying here that the only free lunch and investing is diversification. And
570 00:28:37.600 --> 00:28:40.900 so we tout that investor should be embracing that Casey.
571 00:28:40.900 --> 00:28:43.400 Thank you so much for joining us that concludes part one.
572 00:28:43.400 --> 00:28:46.600 Please feel free to access other podcasts
573 00:28:46.600 --> 00:28:49.000 that we have done and they can be
574 00:28:49.400 --> 00:28:52.600 accessed anywhere you get your podcast. So please join Casey and
575 00:28:52.600 --> 00:28:56.000 I for part two and our next series symmetry Partners
576 00:28:55.700 --> 00:28:58.800 LLC is an investment advisor firm
577 00:28:58.800 --> 00:29:01.700 registered with the Securities and Exchange Commission The
578 00:29:01.700 --> 00:29:04.600 Firm only transacts business in states where it
579 00:29:04.600 --> 00:29:07.500 is properly registered or excluded or
580 00:29:07.500 --> 00:29:11.200 Exempted from registration requirements registration of
581 00:29:10.200 --> 00:29:13.600 an investment advisor does not imply any
582 00:29:13.600 --> 00:29:16.400 specific level of skill or training and does
583 00:29:16.400 --> 00:29:19.100 not constitute an endorsement of the firm by the
584 00:29:19.100 --> 00:29:22.300 commission. No one should assume that future performance of any
585 00:29:22.300 --> 00:29:26.300 specific investment investment strategy product or
586 00:29:25.300 --> 00:29:28.300 non-investment related content made
587 00:29:28.300 --> 00:29:31.800 reference to directly or indirectly in this material will be
588 00:29:31.800 --> 00:29:32.400 profitable.
589 00:29:33.400 --> 00:29:36.500 As with any investment strategy there is the possibility of
590 00:29:36.500 --> 00:29:39.500 profitability as well as loss due
591 00:29:39.500 --> 00:29:42.300 to various factors including changing market
592 00:29:42.300 --> 00:29:44.700 conditions and/or applicable laws.
593 00:29:45.300 --> 00:29:48.900 The content may not be reflective of current opinions or
594 00:29:48.900 --> 00:29:51.600 positions. Please note the material
595 00:29:51.600 --> 00:29:54.300 is provided for educational and background use only
596 00:29:54.300 --> 00:29:58.000 moreover. You should not assume that any discussion or information
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598 00:30:00.800 --> 00:30:04.400 receipt of or as a substitute for personalized
599 00:30:03.400 --> 00:30:05.700 investment advice.
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