I hope this note finds you doing well. The Summer in Piedmont/NC has been wonderful and relatively cool.
In lieu of opining on the current interest rate environment (bullets below), I wanted to officially compliment our 2017 intern class.
Interest Rates: Lower for longer (10 year Treasury 2.21%)
Inflation: Moderate (10 year Breakeven 1.78%)
Valuations: High* (Foreward S&P500 P/E 19x CAPE
Outlook: Low Rates = High Asset prices, until they don't!
Experience: Risk Happens fast (drafted this note prior
to Thursday drawdown)
Forest Capital runs a parallel internship program with a hands-on construction/development element (Rowan Rock & Timber).
The intent is to not only teach the mechanics of finance, bond vernacular, and valuation techniques, but to connect the arcane world of finance to the world of real economic growth.
Real estate development is a good means to this end.
The Summer 2017 class was stellar and brought an enthusiasm and intellect we cherish.
Attached is a photograph of Cow Day and our FC interns. Cow day is a character builder, condensed life metaphor, and torch passing for their Fall 2017 adventures.
Few injuries this time through the shoot, except my bruised ribs.
2017 Class includes:
Forest Capital: Davis Dawson. Sophomore UNC - Chapel Hill (2yr.
intern+). Eagle Scout
Forest Capital: Austin Krum. High School Junior - NC School of Science and
Math (great work Krum). Eagle Scout
Forest Capital: Marco Mercado. Senior UNC-Charlotte (2 yr. BS super-early
college graduate, not pictured)
Forest Capital/RRT: James Barrier. Eagle Scout (not pictured)
RRT: Cameron McClure. Freshman - Auburn University. Eagle Scout
RRT: Anson Laukaitis. Senior - Kannapolis High School
RRT: Lee Heath. Senior - Kannapolis High School
Manager RRT: John Michael Johnson (U.S. Army 1st Lt.). Eagle Scout
We are thrilled and appreciative to have worked with each one of these young men and look forward to their further personal growth. Well done gentlemen.
We appreciate your interest in Forest Capital and Sixty Guilders Research.