In this month's podcast, Sean Corkery sat down with Joe Barry, Pat Barry, and Kate Alves to discuss the trends we saw in 2018 and what our expectations are for 2019. Additionally, we reflect on how today's price action compares to past moments of market unrest and share the "golden rules" of value investing that guide our approach.


As always, if you have any questions about the ideas or information covered on this month's broadcast, please call or e-mail your advisory team directly. We are happy to provide further insight or discuss how these ideas relate to your unique financial situation.


We wish you and yours have a Happy New Year, and look forward to supporting your financial goals during 2019 and beyond.

Best Regards,
The Barry Team
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Chart of the Month
international PE ratios.jpg

The forward price-to-earnings ratio (forward P/E) shows how expensive a company's stock is relative to that company's projected, future earnings. Not just limited to individual stocks, the forward P/E ratio can be used to compare two stocks, two sectors, or two indices. 

The chart above compares the forward P/E ratio for U.S. equities and international equities since 1998. Historically, international equities have traded at a 10% discount to U.S. equities, as shown by the purple line. Today, however, international stocks are trading at a 23% discount to U.S. equities - the largest discount we've seen in over 20 years.


So what does this all mean? Well, we  believe in mean reversion, or the concept that ratios and pricing relationships that drift off course will typically return to long-term, historical norms. If we do see a reversion to the mean, it would come from international equities outperforming U.S. equities moving forward.


Chart Source:  JP Morgan, Has Recent Performance Affected Long-Term Prospects?

The Lighter Side Of Investing
Just like people, many companies are creating resolutions for the New Year. And like people,  some companies will do a better job than others when it comes to keeping these resolutions during 2019.
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Team Highlight: Sean T. Corkery
I grew up in Cohasset, Massachusetts, a small coastal town about 20 miles south of Boston.  While attending Babson College, I had the privilege of working for Wall Street Games...
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