Wealthtrack Financial Markets Are Dangerous for Investors: What You Need to Know 2022

[Graybeard]

This week’s guest has experienced multiple economic and market cycles during his more than 50 years of managing money and thinks the current one is particularly perilous for investors. In an exclusive WEALTHTRACK appearance, he felt it was important to tell us why and what steps we should consider taking to mitigate its effects.

Robert Kessler was the CEO of his namesake Kessler Companies from its founding in August of 1986 until he made the decision to close the business in October 2021. Until then he was a manager of fixed-income portfolios, specializing mostly in strategies using U.S. Treasuries for institutions and high net worth individuals around the globe.

I've heard Robert Kessler several times on the radio 15-20 years ago, he always struck me as someone who knows what he is talking about. I watched this twice, the 1st time I didn't feel like I understood what advice was being given. Is this directed at people still working, about 5 years from retirement or those retired? It seems clearer the 2nd time, eliminate debt presumably that applies to everyone and for those retired with limited time to ride out a downturn that could run 15 or 20 years be in treasuries.

But is being in treasuries to the point of no equities to help offset inflation make sense? I can't tell you all the articles and studies I have read over the years that say at a minimum you need 25% in equities for inflation protection. I suppose if the equity mark suffers a 1970's or 1929 event, or the banking system collapses (a fear in 2008 with Leman) then those of us in our 70's+ or those younger in less than perfect health don't have the time to ride out that long of a downturn and capital preservation may make more sense.

I'll post the video and make some personal comments later.