HOME     RESEARCH    Fourth Quarter 2019 Research Webinar Replay

Fourth Quarter 2019 Research Webinar Replay

Jan 23, 2020 / LG Research, Asset Class Research

Listen to a replay of our fourth quarter 2019 Litman Gregory research team webinar. Topics covered (among others): investment challenges, municipal bonds, U.S. and European stock valuations, value vs. growth, and small vs. large. The presentation slides are available at the bottom of the page under Resources.

 

Audio of the full call:
 
Fourth Quarter Recap and Market Overview with Peter Sousa, Director of Portfolio Strategies:
 
What do you see as the biggest investment challenge for the next decade?
 
Can you give an update on your thinking in the municipal bond market?  Is California-specific demand a large tailwind due to increases in effective tax rates due to SALT and withholding issues under the new tax laws?
 
Foreign equities are more attractive from a valuation standpoint, but what does Litman Gregory believe will be the catalyst for them to close the performance gap with the U.S. stock market? How will European stocks out-earn U.S. stocks?   
 
Has there been any discussion or analysis related to overweighting value stocks and underweighting growth stocks?
 
The environment we’re in now is reminiscent of the late 1990s.  Large-cap domestic growth was the only game in town.  While it’s not as extreme today, it’s been going on for a longer period.  This tests clients’ patience.  What steps is Litman Gregory taking to help keep clients on track?  
 
Since the largest companies in the S&P 500 have fundamentally changed (contract workers, not producing/manufacturing goods, low wage growth) profit margins have been much higher, as you’ve said many times. Should this warrant a higher multiple on earnings than the 17x in your base case? 
 
What kind of 12-month scenarios are you thinking about from the risk management exercises you run? And is there anything new on the longer-term, five-year scenarios you consider?
 
Can you talk about your positioning in U.S. stocks, in the context of larger and smaller company weightings? Any changes on the horizon there?  
 
Given the massive run up in U.S. stock valuations that you cite in your year-end commentary and low bond yields, have you thought about increasing your weighting to alternative strategies in the models? If you were to increase, would you add to existing or new strategies?  
 
 

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