Click here to close now.

Welcome!

.NET Authors: Pat Romanski, Andreas Grabner, Trevor Parsons, Elizabeth White, Tad Anderson

News Feed Item

Sloan Wealth Management Posts Year End Letter -- Keep Your Eye on the Ball

DALLAS, TX -- (Marketwire) -- 01/24/13 -- Sloan Wealth Management, LLC, an independent investment advisor registered with the Securities and Exchange Commission, has posted their much anticipated yearend letter. The letter details another year of great performance as many of their global macro calls in 2012 were profitable for their investors. The following is the 2012 year end letter:

Fundamentals vs. Fear -- Worry About Your Worries
The members of the Portfolio Management Team at Sloan Wealth Management (SWM) coach two baseball teams, two soccer teams, one T-ball team and one basketball team for our collective young children. Thus, we find ourselves stressing the basics. Learning the fundamentals of how to catch a pop-up will eliminate some of the fear of getting hit in the face. In 2012, we found many parallels to the capital markets as our portfolios posted high double digit returns in the face of fear. Fueled by the media, bad memories and political shenanigans, many investors took their eye off the ball and missed another great year of wealth creation in the capital markets.

Auld Lang Syne -- Should Old Acquaintance be Forgot...
At SWM, we thoroughly enjoy the process of penning our year end letter. We discuss the events in our lives as they relate to events in the capital markets -- giving merit to the highs, cursing the lows and making sure we learn from both -- and no acquaintances are forgotten. Part of our process is to review our past year end letters to make sure they are worth the paper they were printed on. (Our past musings can be read at www.sloanwm.com). We realize this is a humbling business, but also feel it's appropriate to highlight the results of our hard work and thoughtful research. The following are some highlights of our research opinions from last year -- based on the fundamentals and not fear.

  • Stocks outperform bonds (we believe this trend will continue in 2013)
  • Homebuilding industry rebounded and sector was one of the best performing in the stock market
  • Corporate spending on technology increased and so did the price of the tech stocks
  • Germany thrives on weak Euro (2nd highest returning developed country in world in 2012)
  • Volatility caused by global hedge funds and computer programs continued
  • Low yield on bonds will drive money to equities
  • This current decade has high probability of being profitable for our clients

Now, with the decade 30% complete, $1 million invested on January 1, 2010 would amount to $1.32 million at the end of 2012 or a 32.8% cumulative return (net of fees -- see performance notes at bottom). The Moderate Risk Composite is made up of a collection of globally diversified portfolios with a similar moderate risk level.

Globe Trotting -- Technology Continues to Shrink the World
In 2012, an estimated one third of the world (over two billion people) now has access to the internet. The summer Olympics served as a further reminder of how the world is connected, as did the returns of the global capital markets. In the USA, the resilience of our stock market and our economy was on further display after super storm Sandy and the "Fiscal Cliff" failed to hold down our nation. We hope the phrase "Fiscal Cliff" will soon be forgotten.

Das ist Gut ("This is good" in German) -- As predicted in our previous letters, the European Union remains intact and the financial crisis on the other side of the pond did not take down the global economy. In last year's letter, we discussed our investment in Germany. It was the second best performing developed country in 2012. In the emerging world, China seems to have engineered a soft landing and looks to grow around 7.5% per year while India at a rate of 6.5% annually. The emerging markets continue to fuel growth around the world as the largest demographic shift in the history of mankind occurs with over one billion people making their way above the poverty line in the coming decades. Once over the poverty line, one tends to improve their eating, transportation and increase overall consumption of goods and services.

Best Kept Secret -- Valuations Matter
Let's review the fundamentals of stock valuation to discuss the current state of the stock market.

Earnings -- When purchasing a stock, you are buying a stream of future earnings. The earnings of the S&P 500 in 2011 were the highest in history at over $96. That record did not last long, as 2012 is forecast to be in the $100 range. The consensus estimates for 2013 is $112. Despite all of the events of the year, many companies posted record earnings. Our portfolios were up 16.5% while US GDP is estimated to grow at only 2.5% to prove again that portfolios can go up and corporations can make money while the economy muddles along.

Multiples -- The second part of the picture is the multiple placed on those profits. This multiple is the premium an investor is willing to pay for these future earnings. The current price-to-earnings multiple (P/E) of the market is 13 times 2013 earnings estimates. The average multiple when interest rates are this low is closer to 16 times earnings. In conclusion, with a modest increase in earnings and a more normalized multiple, the stock market could be poised for further gains in 2013.

Rebound -- Underestimating the Housing Recovery
We predict the domestic economy will continue to grow modestly for the 5th straight year. The recovery in housing will be a fundamental reason and lead to the aforementioned multiple expansion. We believe the effects of the housing recovery are being greatly underestimated. Home building helps many industries beyond its namesake. Home building creates jobs in concrete, lumber, light fixtures, heating and cooling, real estate agents, mortgage brokers, lawyers and many others. In addition, it creates property tax revenues that fund communities and even education. The National Association of Home Builders estimates that three jobs are created for every home built.

Aside from these positive effects to the economy, an improvement in home prices creates confidence. In most cases, the home is a family's largest asset. The increase in price of your largest asset creates financial stability and wealth which fuels multiple expansion.

For more information on Sloan Wealth Management, visit www.sloanwm.com or call 214 720 7500.

About Sloan Wealth Management, LLC -- Sloan Wealth Management was founded by Frank O. Sloan, bringing together a team of strategic financial and business managers with a combined 100 years of experience working with high net worth individuals and businesses to manage wealth. The company's proprietary asset allocation strategy navigates stock and bond markets through all economic cycles and delivers results based on client objectives and sound financial principals.

The foregoing data represents the performance of the Moderate Risk Portfolio developed by Sloan Wealth Management, LLC ("Sloan"). The Moderate Risk Portfolio is allocated in a range of investments according to Sloan's proprietary investment strategies. Sloan's proprietary investment strategies may be allocated amongst individual stocks, bonds, mutual funds, and other instruments with a view towards income and/or capital appreciation depending on the specific allocation employed by each model portfolio. Past performance of the Moderate Risk Portfolio may not be indicative of their future performance. No current or prospective client should assume that future performance results will be profitable or equal the performance presented herein. The performance results of the Moderate Risk Portfolio do reflect the re-investment of dividends and other earnings. The performance shown does reflect the deduction of Sloan's advisory fees, brokerages fees or other expenses. Performance has been calculated from sources which Sloan deems to be reliable, but Sloan has not independently verified such information and does not guarantee the accuracy thereof. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment strategy will be profitable. The use of Sloan's Moderate Risk Portfolio may not be appropriate for certain investors as part of their overall investment strategy. Additional information about Sloan, including its investment advisory services, and applicable fees can be obtained by requesting a copy of Tribeca's disclosure statement of Part II of the Form ADV which is available upon request. Sloan is an SEC registered investment adviser with its principal place of business in the State of Texas. Sloan and its representatives are in compliance with the current registration requirements imposed upon registered investment advisers by those states in which Sloan maintains clients. Sloan may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Any subsequent, direct communication by Sloan with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Sloan please contact Sloan or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov).

Amy Davis
214-720-7500
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
As organizations shift toward IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection &E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 16th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships, will discuss how to cut costs, scale easily, and unleash insight with CommVault Simpana software, the only si...
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed expressly to run Docker. He will also discuss Rancher, an orchestration and service discovery platf...
Analytics is the foundation of smart data and now, with the ability to run Hadoop directly on smart storage systems like Cloudian HyperStore, enterprises will gain huge business advantages in terms of scalability, efficiency and cost savings as they move closer to realizing the potential of the Internet of Things. In his session at 16th Cloud Expo, Paul Turner, technology evangelist and CMO at Cloudian, Inc., will discuss the revolutionary notion that the storage world is transitioning from mere Big Data to smart data. He will argue that today’s hybrid cloud storage solutions, with commodity...
Cloud data governance was previously an avoided function when cloud deployments were relatively small. With the rapid adoption in public cloud – both rogue and sanctioned, it’s not uncommon to find regulated data dumped into public cloud and unprotected. This is why enterprises and cloud providers alike need to embrace a cloud data governance function and map policies, processes and technology controls accordingly. In her session at 15th Cloud Expo, Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems, will focus on how to set up a cloud data governance program and s...
Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - http://RobertoMedrano.SYS-CON.com/ - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been involved at the beginning of four IT industries: EDA, Open Systems, Computer Security and now SOA.
Every innovation or invention was originally a daydream. You like to imagine a “what-if” scenario. And with all the attention being paid to the so-called Internet of Things (IoT) you don’t have to stretch the imagination too much to see how this may impact commercial and homeowners insurance. We’re beyond the point of accepting this as a leap of faith. The groundwork is laid. Now it’s just a matter of time. We can thank the inventors of smart thermostats for developing a practical business application that everyone can relate to. Gone are the salad days of smart home apps, the early chalkb...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, representing a model of how to analyze rea...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
CommVault has announced that top industry technology visionaries have joined its leadership team. The addition of leaders from companies such as Oracle, SAP, Microsoft, Cisco, PwC and EMC signals the continuation of CommVault Next, the company's business transformation for sales, go-to-market strategies, pricing and packaging and technology innovation. The company also announced that it had realigned its structure to create business units to more directly match how customers evaluate, deploy, operate, and purchase technology.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
Even as cloud and managed services grow increasingly central to business strategy and performance, challenges remain. The biggest sticking point for companies seeking to capitalize on the cloud is data security. Keeping data safe is an issue in any computing environment, and it has been a focus since the earliest days of the cloud revolution. Understandably so: a lot can go wrong when you allow valuable information to live outside the firewall. Recent revelations about government snooping, along with a steady stream of well-publicized data breaches, only add to the uncertainty
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
PubNub on Monday has announced that it is partnering with IBM to bring its sophisticated real-time data streaming and messaging capabilities to Bluemix, IBM’s cloud development platform. “Today’s app and connected devices require an always-on connection, but building a secure, scalable solution from the ground up is time consuming, resource intensive, and error-prone,” said Todd Greene, CEO of PubNub. “PubNub enables web, mobile and IoT developers building apps on IBM Bluemix to quickly add scalable realtime functionality with minimal effort and cost.”