Strategies in a Volatile Market with Niall Gannon Capital Club

Brian sits down with Niall Gannon, a frequent top financial advisor in America and author of the book Investing Strategies for High Net Worth Investors. Join us as we explore the concept of efficient markets and dive into Wall Street Alternatives, a 2005 presentation by Niall that challenged the industry to reconsider asset allocation. We look at two periods in time, 1982 and 2000 when markets were especially cheap and offered plenty of growth opportunities. Tune in now for an engaging discussion on navigating today's market!
Niall Gannon is frequently listed as one of America's top financial advisors. He has literally written the book on investing for high net-worth families, challenging the industry with research on reaching better investor outcomes net of everything.
[00:01 - 08:17] Opening Segment
Niall Gannon discussed his research into the effective tax rate of high-net-worth investorsInvestors in high tax brackets do not get paid the same returns as their institutional peersfamilies should be skeptical before investing and make sure they are comfortable with their investments
[08:18 - 20:55] Exploring the Benefits of Fixed Income Allocations
September 2022 saw 5 trillion of capital infused into the economyThe S&P was trading at a 6% earnings yield, minimum expected return going forwardHigh-grade municipal bonds were trading at 6% in 2000There is no way to dampen short-term volatility with long-term bonds
[20:56 - 23:59] "The Dangers of Relying on Headlines: How to Avoid the Mistakes of 2000"
Bonds provide a fixed rate of return and fixed price at maturityInvestors need to brace for a possible recessionEquity returns are a function of accumulated profits over 20 yearsInvesting slowly and diligently is key in times of uncertaintyVolatility does not equate to capital loss if held to the durationHeadlines often predict market tops and bottoms from a contrarian standpoint

[23:59 - 38:40] How to Allocate Assets for Maximum Protection
Investors should look at the burden in hand (bonds) versus a two in the bush (riskier investments)Active management is key to ensuring all components of a portfolio are accounted forPlanning for families should not be based on rosy assumptions and should err on the side of caution

[38:41 - 40:26] Closing Segment

Quotes:
“For long-term bonds or any equity or risk-based asset, there is no way to dampen short-term volatility. ” - Niall Gannon
“You have to look at the companies that you buy and recognize. You have duration risk with them too. ” - Niall Gannon
“It's not 2000, right? We're not 30x earnings. It's not 1929 with the taxi drivers leveraged in their brokerage accounts.” - Niall Gannon

Connect with Niall through LinkedIn, or visit www.NiallGannon.com.
Niall's book: https://www.amazon.com/Investing-Strategies-High-Net-Worth-Investor/dp/0071628207
Connect with me:
https://www.linkedin.com/in/brian-c-adams/ (LinkedIn)
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