July 23, 2022 In-Person Chapter Meeting & Webinar

High Valuations, Future Returns, and a Fed Policy Mistake: What’s an Investor to Do?

John Simms Jr., Ph.D., CFA, Chief Investment Strategist, Piedmont Trust Company

The stock market’s long run average return of 10% hides plenty of volatility. 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. Today, equity valuations remain above average. Valuations typically fall below average during bear markets so complacency after the recent decline may be dangerous to your portfolio’s health. We will discuss today’s environment given the Fed’s policy mistake, future return prospects, and ways to play defense.

Attend This Meeting and Learn:

  • From the level of recent high valuations, investors might expect below average returns over the next 10 – 12 years.
  • Strategy diversification is important when all asset classes are fully valued.
  • The discipline to rebalance your portfolio will be critical.
  • The option value of cash is considerable even at today’s lower valuations.

Meeting Details:

Date: Saturday, July 23, 2022

Time: 10:00 a.m. ET (mix and mingle starts at 9:30)

Location: Cary Senior Center, 120 Maury O’Dell Pl, Cary, NC 27513

Virtual access: To register to attend the Zoom webinar, please purchase a ticket on our chapter’s Square account

Cost: $7 cash (in-person) or electronic payment (webinar)

Before attending in person, please read:

Because of high levels of COVID cases, we ask that you wear a mask during the entire meeting.

If you have COVID-like symptoms, please join us virtually.

About Our Speaker:

John Simms earned a BA from Davidson College and a PhD from UNC-Chapel Hill. He has held faculty positions at the University of Virginia’s Darden Graduate School of Business Administration and UNCG’s Bryan School of Business and Economics. John’s practical experience includes trading commodities for a NYC investment bank and relationship and investment management roles for private wealth and family office firms. He holds the Chartered Financial Analyst designation and is a member of CFA Institute and the CFA NC Society. John serves his community on the Finance and Administration Committee of the United Way of Greater Greensboro.

For over 90 years, Piedmont Trust Company has served as the family office for a large Greensboro-based family now in its sixth generation. Piedmont also works with other multi-generation families to meet their investment management, fiduciary, tax planning, foundation administration, and estate and financial planning needs.

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