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First Quarter 2018 Research Call Replay

Apr 19, 2018 / Investment Commentary, Asset Class Research

This is a replay of our first quarter 2018 Litman Gregory research team webcast, held April 19, 2018. Topics covered (among others): active versus passive, tariffs and trade wars, portfolio positioning, and putting new client money to work. The presentation slides are available at the bottom of the page under Resources.

 

Audio of the full call:
 
First Quarter Recap and Market Overview with Peter Sousa, Director of Portfolio Strategies:
 
Litman Gregory has commented on this in the past, but what is your current take on the possible move away from passive investment? 
 
Do you have current thoughts on the tariff talk and how a potential trade war might impact your view on international stocks? 
 
How are our fixed-income managers positioning their portfolios in terms of duration and risk with yield curve flattening and credit spreads being so narrow?
 
Can the team address how they got to the approximate 11% allocation to alternatives? Why not more? And what do you think of investing in private equity?
 
What is Litman Gregory’s case for overweighting Europe in particular more than developed international in general?
 
I use only mutual funds that you recommend in my client portfolios. I received a call from a client asking which, if any, managers own companies that manufacture assault rifles. Is there an easy/quick way to get this information? Are you getting similar questions from clients? If so, how are you addressing them?
 
Does your optimistic scenario consider consistent above-trend earnings growth? Hypothetically, I was wondering if due to factors like fiscal stimulus, low borrowing rates, and high profit margins, we continue to grow earnings in the 15%-range quarter after quarter, how long would it take for valuations to reflect more attractive expected returns for U.S. stocks? Is it even realistic that we’d see that type of growth from here?
 
What’s the most prudent approach to putting new money to work in this environment of high stock and bond valuations, heightened volatility, low expected returns, and negative real yields on cash? Do you build up cash like some of your value managers? Or do you just get invested immediately and say “time in the market, not timing the market”?

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