Brown Advisory

JANUARY 1, 2023

Download it here > Dear Fellow Investors, If we had to sum up 2022 in one word it would be valuation. War, inflation, recession, deglobalisation, decoupling, strikes, crypto-crash and energy (crisis) all featured but for us the overriding focus for 2022 was valuation. For reference the U.S. which was greater than our -1.1%

Investing 52

Investing Investments Valuation Clients 52

Brown Advisory

AUGUST 24, 2017

As noted above, private real estate valuations generally only change according to periodic property appraisals, whereas REITs, like stocks and bonds, are subject to open-market volatility. *We Liquidity refers to the ease and facility with which an asset may be bought or sold. Source: Thomson Reuters.

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Brown Advisory

MARCH 18, 2022

CIO Perspectives Webinar, 2022 Asset Allocation Outlook mhannan Fri, 03/18/2022 - 06:42 Markets have been unsteady at the start of 2022, driven by geopolitical tensions, inflation, and concerns about equity valuations. These trademarks have been licensed to S&P Dow Jones Indices LLC. The war in Ukraine is causing even more uncertainty.

Asset Allocation 52

Asset Allocation Assets License Government 52

Brown Advisory

MARCH 18, 2022

Markets have been unsteady at the start of 2022, driven by geopolitical tensions, inflation, and concerns about equity valuations. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the index (collectively, “Bloomberg”) and have been licensed for use for certain purposes by Brown Advisory.

Asset Allocation 52

Asset Allocation Assets License Government 52

James Hendries

JANUARY 13, 2023

economy to avoid recession, and support above-average valuations. The relationship between inflation and stock valuations is a strong one, as shown in Figure 2 , which meant the market could no longer support price-to-earnings (P/E) ratios over 20 (the same goes for the relationship between interest rates and stock valuations).

Marketing 52

Marketing Marketing Valuation Asset Allocation 52

James Hendries

OCTOBER 25, 2022

The three factors for defining a recession are depth, diffusion, and duration – conveniently referred to as the “three D’s.” Depth refers to declining economic activity that is more than a relatively small change. References to markets, asset classes, and sectors are generally regarding the corresponding market index.

Marketing 52

Marketing Marketing Economics Economy 52

James Hendries

MARCH 13, 2023

However, the pressure on valuations from higher interest rates, which have made bonds attractive alternatives, led to the Committee’s recent decision to reduce the size of the overweight from 5 points to 3. But valuations strongly favor value over growth. The S&P 600 small cap index has returned about 1.5%

Assets 52

Assets Marketing Marketing Asset Allocation 52

Sara Grillo

NOVEMBER 14, 2022

He is a flat fee advisor; not a licensed insurance agent. Fee only advisors can now purchase annuities for their clients without having to be licensed agents. Mettler says he does not have a securities license for this reason. Scott Salaske , CEO of Firstmetric. For those of you who are new to my blog, my name is Sara.

Insurance 59

Insurance Financial Advisor Retirement License 59

James Hendries

OCTOBER 18, 2022

But overall, we would expect modest estimate cuts to be received positively by markets, supported by lower valuations and depressed investor sentiment. rather than 4%) could prop up valuations, stocks will likely take their cues from earnings in the near term. Insurance products are offered through LPL or its licensed affiliates.

Marketing 52

Marketing Marketing Valuation Economics 52

James Hendries

AUGUST 23, 2022

References to markets, asset classes, and sectors are generally regarding the corresponding market index. It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio. All index data from FactSet.

Marketing 98

Marketing Marketing Sales Economy 98

James Hendries

JUNE 26, 2023

With the broad market overbought in the short-term from a technical analysis perspective and valuations elevated, stocks may be due for a pause. References to markets, asset classes, and sectors are generally regarding the corresponding market index. It is also a major component used to calculate the price-to-earnings valuation ratio.

Marketing 52

Marketing Marketing Asset Allocation Valuation 52

James Hendries

JULY 3, 2023

While this latest rally may have outpaced fundamentals in the short term, from a technical analysis perspective, and valuations look full, at the same time, the resilience of the U.S. References to markets, asset classes, and sectors are generally regarding the corresponding market index. All index data from FactSet.

Marketing 52

Marketing Marketing Banking Valuation 52

James Hendries

NOVEMBER 15, 2022

Growth stocks typically trade at higher valuations on the premise that an investor is buying a company now that will grow to be a much larger company, producing higher levels of cash and profit in the future. Increasing the discount rate, which lowers the present value of future cash flows, and company valuations.

Marketing 52

Marketing Marketing Asset Allocation Valuation 52

James Hendries

AUGUST 30, 2022

In our Midyear Outlook 2022: Navigating Turbulence , released back in mid-July, we wrote that it was tough to see the bull case through the cloud cover, but that an improved macroeconomic environment may set the stage for higher valuations, further earnings growth, and solid gains for stocks over the rest of the year.

Marketing 52

Marketing Marketing Valuation Economics 52

James Hendries

JUNE 20, 2023

Despite the reference to 2007, our baseline is the economic slowdown does not produce another “2008,” yet investors should anticipate some volatility as the economic outlook remains cloudy. References to markets, asset classes, and sectors are generally regarding the corresponding market index. All index data from FactSet.

Marketing 52

Marketing Marketing Economy Communication 52

James Hendries

AUGUST 15, 2022

Stock valuations are higher but bond yields are still low enough to support valuations with the 10-year Treasury yield well under 3% despite the big jobs number. References to markets, asset classes, and sectors are generally regarding the corresponding market index. Investing involves risks including possible loss of principal.

Marketing 52

Marketing Marketing Economy Valuation 52

James Hendries

SEPTEMBER 13, 2022

References to markets, asset classes, and sectors are generally regarding the corresponding market index. It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio. All index data from FactSet.

Marketing 52

Marketing Marketing Economy Valuation 52

James Hendries

JANUARY 31, 2023

References to markets, asset classes, and sectors are generally regarding the corresponding market index. It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio. All index data from Bloomberg.

Marketing 52

Marketing Marketing Valuation Insurance 52

James Hendries

SEPTEMBER 20, 2022

This is referred to as an inverted yield curve, which has been a pretty reliable predictor of economic recessions. References to markets, asset classes, and sectors are generally regarding the corresponding market index. It is also a major component used to calculate the price-to-earnings valuation ratio.

Marketing 52

Marketing Marketing Economy Economics 52

James Hendries

NOVEMBER 22, 2022

References to markets, asset classes, and sectors are generally regarding the corresponding market index. It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio. All index data from Bloomberg.

Marketing 52

Marketing Marketing Valuation Asset Allocation 52

James Hendries

MARCH 6, 2023

Higher interest rates are challenging stock valuations and perhaps pushing the gains further out in 2023, but we still see solid potential for double-digit returns for stocks this year. References to markets, asset classes, and sectors are generally regarding the corresponding market index. All index data from FactSet.

Marketing 52

Marketing Marketing Economy Economics 52

James Hendries

OCTOBER 4, 2022

Early in its rapid modern growth period, leaders referred to the country as the Peaceful Giant. References to markets, asset classes, and sectors are generally regarding the corresponding market index. It is also a major component used to calculate the price-to-earnings valuation ratio. All index data from FactSet.

Marketing 52

Marketing Marketing Economy Economics 52

James Hendries

JANUARY 26, 2023

Should the Fed pause after a March interest rate hike, the stage may be set for a nice stock market rebound on the back of falling inflation, reasonable valuations, and stable interest rates. References to markets, asset classes, and sectors are generally regarding the corresponding market index. All index data from Bloomberg.

Marketing 52

Marketing Marketing Economy Economics 52

Brown Advisory

SEPTEMBER 22, 2017

based provider of high- end integrated processors, has licensed ARM’s designs for greater efficiency and functionality in the server market. Our comments in this article specifically refer to the use of sustainable investment principles to drive better returns. Cavium, a U.S.-based Hammond, and W. Can Alpha Be Captured By Risk Premia?"

Portfolio 52

Portfolio Investing Investments Management 52

Brown Advisory

SEPTEMBER 22, 2017

based provider of high- end integrated processors, has licensed ARM’s designs for greater efficiency and functionality in the server market. Our comments in this article specifically refer to the use of sustainable investment principles to drive better returns. References. Cavium, a U.S.-based Hammond, and W. Springsteel.

Portfolio 52

Portfolio Investing Investments Management 52

James Hendries

AUGUST 3, 2022

We still expect a growing economy, steady, if not solid, earnings gains ahead, and stable interest rates to fuel higher stock prices, although further gains will be more difficult to achieve given the time it will take for inflation to come down enough for the Fed to more strongly signal a pause and higher valuations.

Marketing 98

Marketing Marketing Economy Valuation 98

James Hendries

NOVEMBER 1, 2022

References to markets, asset classes, and sectors are generally regarding the corresponding market index. It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio. All index data from FactSet.

Marketing 52

Marketing Marketing Manufacturing Economy 52

James Hendries

OCTOBER 11, 2022

References to markets, asset classes, and sectors are generally regarding the corresponding market index. It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio. All index data from FactSet.

Marketing 52

Marketing Marketing Banking Government 52

James Hendries

JANUARY 20, 2023

References to markets, asset classes, and sectors are generally regarding the corresponding market index. It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio. All index data from Bloomberg.

Marketing 52

Marketing Marketing Economy Economics 52

James Hendries

SEPTEMBER 7, 2022

References to markets, asset classes, and sectors are generally regarding the corresponding market index. It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio. All index data from FactSet.

Marketing 52

Marketing Marketing Valuation Insurance 52

James Hendries

SEPTEMBER 27, 2022

References to markets, asset classes, and sectors are generally regarding the corresponding market index. It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio. All index data from FactSet.

Asset Allocation 52

Asset Allocation Marketing Marketing Assets 52

James Hendries

AUGUST 15, 2022

References to markets, asset classes, and sectors are generally regarding the corresponding market index. It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio. All index data from FactSet.

Marketing 52

Marketing Marketing Economy Valuation 52

James Hendries

DECEMBER 4, 2022

Retailer valuations have also taken a hit, as the forward (next 12 months) P/E multiple has contracted ~20% year to date, from ~27x to ~22x currently. References to markets, asset classes, and sectors are generally regarding the corresponding market index. Insurance products are offered through LPL or its licensed affiliates.

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Retail Marketing Marketing Sales 52

The Big Picture

SEPTEMBER 5, 2023

And we’d sort of turn that into a valuation business. MILLER: Well actually I thought, leading up to the great financial crisis, I thought to myself, we’re going to be out of business within a couple of years because nobody wanted an independent valuation. What are the, you know, I’d literally have it in my handheld.

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Sales Numbers Taxes Marketing 130

James Hendries

JULY 6, 2022

While we acknowledge that a V-shaped recovery is probably not in the cards and prior valuation targets no longer appear achievable, we remain constructive on equities for the second half, but not complacent. Remember stock valuations are inversely correlated to inflation and interest rates. So a P/E over 20 is probably too rich.

Marketing 52

Marketing Marketing Valuation Economy 52

The Big Picture

FEBRUARY 7, 2023

COHAN: Yeah, you’re referring to a major league, you know, electrical conspiracy as it was called. And so Goldman’s valuation is around, you know, 110, $120 billion; and Morgan Stanley’s is around 170. He had decided to license his name and just take fees and you know, that’s a much better business model.

Engineering 254

Engineering Banking Management Numbers 254

James Hendries

JULY 21, 2022

Lower inflation tends to bring higher valuations (Fig.1). The market clearly does not expect 8 – 9% inflation to persist based on current stock valuations, but whether inflation eventually settles at 3% or 4% will go a long way toward determining how much higher stock valuations can go from current levels. If the U.S.

Management 52

Management Marketing Marketing Valuation 52