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CAPITAL MARKETS UPDATE 4 th Quarter 2012. An Independent Registered Investment Advisor 9601 McAllister Freeway , Suite 1130 San Antonio, TX 78216 210.547.3450 www.harrismartinfinancial.com Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC.
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CAPITAL MARKETS UPDATE 4th Quarter 2012 An Independent Registered Investment Advisor 9601 McAllister Freeway, Suite 1130 San Antonio, TX 78216 210.547.3450 www.harrismartinfinancial.com Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC Stephanie Harris, CFP®Kyle Martin, CFP ® stephanie@harrismartinfinancial.com kyle@harrismartinfinancial.com
OUTLOOK • Investor Behavior • Despite rising risks and low potential returns, investors continue to be misallocated. • US Equities • US Equities look attractive, even after assessing risks. • Global Economy • The global economy remains troubled, but not in crisis and international valuations remain attractive. • Way Forward • Investors need a more balanced approach to generating income in an age of stretched valuations.
…and mutual fund flows are still heavily from stocks to bonds.
All the style boxes look cheap, with large cap growth the cheapest.
The stock market has rallied to close-to-previous-peak levels, but relative valuations look much more attractive now…
After the biggest bear market in modern history, this bull still looks relatively young.
The actions of the ECB have succeeded in calming fears about sovereign debt and the banking system…
In the age of debt, investors need to move back to balanced.
Definitions, Risks, & Disclosures The information contained in this report does not purport to be a complete description of the securities, markets, or developments, referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Stephanie Harris and Kyle Martin and not necessarily those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. All charts included above are for illustrative purposes only.
Stephanie A. Harris, CFP® 210.547.3450 stephanie@harrismartinfinancial.com Kyle Martin, CFP® 210.547.3450 kyle@harrismartinfinancial.com Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC