WEALTHTRACK
With Zero Stocks in His Portfolio, Robert Kessler Is Sleeping Much Better.
Apr 4, 2025
Robert Kessler, a retired treasury bond manager and CEO of Kessler Investment Advisors, shares his bold stance on investing without stocks. He critiques the 'stocks for the long run' belief, revealing why he's fully divested from equities. Kessler highlights current market volatility and the risks of high stock valuations, urging listeners to consider safer assets like short-term treasuries. He also addresses tax implications that steer investors away from profit-driven decisions, advocating for a diversified and cautious approach to navigating financial uncertainties.
25:41
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Quick takeaways
- Robert Kessler criticizes the traditional 'stocks for the long term' approach, advocating for caution and alternative investments during market overvaluation.
- He emphasizes the importance of capital preservation for retirees, recommending cash and short-term treasury securities over volatile equities for peace of mind.
Deep dives
Concerns About Stock Market Valuation
Current stock market valuations are deemed excessively high, which raises concerns, especially for those nearing retirement. Robert Kessler likens his withdrawal from equities to the strategy of renowned investor Warren Buffett, highlighting a critical view on the rationale of investing in stocks for the long run. Kessler argues that historical instances show the stock market can experience prolonged bear markets, where values can significantly drop, leaving investors at a disadvantage. By emphasizing the need for caution, he suggests it is prudent to consider alternative investments during periods of overvaluation.
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