Welcome!

Microsoft Cloud Authors: Janakiram MSV, Yeshim Deniz, David H Deans, Andreas Grabner, Stackify Blog

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
Elon Musk is among the notable industry figures who worries about the power of AI to destroy rather than help society. Mark Zuckerberg, on the other hand, embraces all that is going on. AI is most powerful when deployed across the vast networks being built for Internets of Things in the manufacturing, transportation and logistics, retail, healthcare, government and other sectors. Is AI transforming IoT for the good or the bad? Do we need to worry about its potential destructive power? Or will we...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
SYS-CON Events announced today that Daiya Industry will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Daiya Industry specializes in orthotic support systems and assistive devices with pneumatic artificial muscles in order to contribute to an extended healthy life expectancy. For more information, please visit https://www.daiyak...
SYS-CON Events announced today that B2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. B2Cloud specializes in IoT devices for preventive and predictive maintenance in any kind of equipment retrieving data like Energy consumption, working time, temperature, humidity, pressure, etc.
SYS-CON Events announced today that Interface Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Interface Corporation is a company developing, manufacturing and marketing high quality and wide variety of industrial computers and interface modules such as PCIs and PCI express. For more information, visit http://www.i...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp em...
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
SYS-CON Events announced today that Suzuki Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Suzuki Inc. is a semiconductor-related business, including sales of consuming parts, parts repair, and maintenance for semiconductor manufacturing machines, etc. It is also a health care business providing experimental research for...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, will discuss how data centers of the future will be managed, how th...
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
SYS-CON Events announced today that Fusic will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Fusic Co. provides mocks as virtual IoT devices. You can customize mocks, and get any amount of data at any time in your test. For more information, visit https://fusic.co.jp/english/.
In his session at @ThingsExpo, Greg Gorman is the Director, IoT Developer Ecosystem, Watson IoT, will provide a short tutorial on Node-RED, a Node.js-based programming tool for wiring together hardware devices, APIs and online services in new and interesting ways. It provides a browser-based editor that makes it easy to wire together flows using a wide range of nodes in the palette that can be deployed to its runtime in a single-click. There is a large library of contributed nodes that help so...
SYS-CON Events announced today that Enroute Lab will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enroute Lab is an industrial design, research and development company of unmanned robotic vehicle system. For more information, please visit http://elab.co.jp/.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
Real IoT production deployments running at scale are collecting sensor data from hundreds / thousands / millions of devices. The goal is to take business-critical actions on the real-time data and find insights from stored datasets. In his session at @ThingsExpo, John Walicki, Watson IoT Developer Advocate at IBM Cloud, will provide a fast-paced developer journey that follows the IoT sensor data from generation, to edge gateway, to edge analytics, to encryption, to the IBM Bluemix cloud, to Wa...