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Strategies in a Volatile Market with Niall Gannon
Episode 15311th January 2023 • The Capital Club • Brian Adams
00:00:00 00:40:26

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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 investors
  • Investors in high tax brackets do not get paid the same returns as their institutional peers
  • families 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 economy
  • The S&P was trading at a 6% earnings yield, minimum expected return going forward
  • High-grade municipal bonds were trading at 6% in 2000
  • There 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 maturity
  • Investors need to brace for a possible recession
  • Equity returns are a function of accumulated profits over 20 years
  • Investing slowly and diligently is key in times of uncertainty
  • Volatility does not equate to capital loss if held to the duration
  • Headlines 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 for
  • Planning 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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