High Valuations and Future Returns, and Preparing Your Portfolio

John M. Simms
January 26, 2022 from 7:00 pm to 9:00 pm

The stock market’s long run average return of 10% is not realized by a return of 10% each year. That average hides plenty of volatility (see 1966 – 1982 and 1995 – 2009). High return periods (bull markets) typically start when valuations are low and rise over time along with earnings growth. Low return periods (bear markets) typically begin when valuations are high and subsequently fall over time along with falling earnings growth. Equity valuations today are quite high and have been high for several years. Complacency is dangerous to your portfolio’s health. We will discuss today’s environment, future return prospects, and ways to introduce defensive characteristics to your portfolio.

ABOUT THE PRESENTER

John joined Piedmont as Chief Investment Officer in 2011. He has more than 25 years of experience counseling clients in the financial services and wealth management industry. At Piedmont, John is primarily responsible for the delivery of integrated wealth management counsel and solutions for clients. In addition to serving clients in family office and boutique advisory firms, John spent four years in proprietary trading in New York City and taught finance at the undergraduate and graduate levels at the University of Virginia and UNC Greensboro for eight years. He has a B.A. in Religion from Davidson College
and a Ph.D. in Finance from UNC Chapel Hill. He holds the Chartered Financial Analyst designation from the CFA Institute.

John volunteers on the United Way of Greater Greensboro’s Finance Committee. He enjoys playing golf and reading historical fiction and economic and financial market history. John is married and has two children and three grandchildren.

Attend this seminar to learn:

    • Today’s high valuations portend below average returns over the next 10 – 12 years.
    • Strategy diversification is important when all asset classes are fully valued.
    • The importance of using multiple asset classes in a retirement portfolio and the impact of keeping portfolio costs low.
    • The importance of using multiple asset classes in a retirement portfolio and the impact of keeping portfolio costs low.
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