Key Highlights

[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

Additional Links:

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 

Brian’s Linkedin: https://www.linkedin.com/in/brian-c-adams/