The Voice of Experience, Ep #46

Peter Cavelti is a financial advisor who shares a similar worldview as we do. He was one of the first investment managers to recognize some of the defining trends of our time, such as the ascent of emerging economies and the dramatic reversal of globalization. In this episode of UPThinking Finance™, we have a conversation about his career, his opinion on the US debt, and how he navigates financial planning with the future in mind.
================================

LISTEN IF YOU ARE INTERESTED IN…

[3:23] Learn more about Peter Cavelti
[7:34] Peter’s thoughts on the Covid conversation
[13:36] The biggest challenge Peter’s had to overcome
[19:32] Is the US debt spiraling out of control?
[28:25] How Peter structures their investment portfolio
[36:42] Navigating the narrative within the industry

The biggest challenge Peter’s had to overcome in his career

Peter points out that the government is in a constant state of overreach. It’s troublesome. What will the socioeconomic results be? Will people go along with it, or start to express themselves? Peter believes that a shift is happening. Government corruption has never been more visible.

The government also likes to divide and conquer. Every few years, the government seems to create an external enemy and an internal enemy to split the people. Then they come up with divisive policies. For the longest time, Russia was the enemy. When the Soviet Union collapsed, China became the enemy. Peter assumes that this will always continue.

He shares that we’re seeing a meltdown of the middle class and a decline in the standard of living. This is coupled with the manipulation of information by the mainstream media.

Is the US debt spiraling out of control?

A lot of things are coming to a head. When you look back at the Post-War order, Peter shares that the United States controlled the IMF, the World Bank, and ⅗ of the UN Security Council Seats. The United States controls NATO, the world’s payment systems (SWIFT), and commodity transactions. The US Dollar is the world’s reserve currency. The US is fighting to maintain this.

The US brought Europe under one umbrella and proposed sanctions to stop what’s happening in Russia. The Europeans endorsed those sanctions without thought. The US is absolutely determined to keep this post-war order.

One of the key creditors of US debt is China. If China became involved in a military confrontation with the US, the US could easily say “We’re not going to repay that debt.” We’re reaching a point where this debt is no longer repayable. The situation could be manipulated dishonestly. Or, the Fed can choose to keep interest rates high and reintroduce inflation. At some point, we’re likely headed for a decline in the US dollar.

America is still in better shape than other countries. We have massive natural resources. The debt levels in other countries are even higher. But it doesn’t matter. The US is the nation of consequence.

Navigating the narrative within the industry

When you’ve been in the business as long as we have, you take on a macro and long-term perspective. Peter will sit with a potential client and explore whether or not they have similar value systems and risk tolerances. Most of Peter’s clients have been with him for over 30 years.

They don’t have conversations like “Explain to me why we’re not in this stock.” They know that he won’t invest in Pfizer or corporations that he perceives to operate on unethical behavior and conflicts of interest. Peter is fiercely independent and strictly avoids conflicts of interest.

Peter Cavelti is not affiliated with or endorsed by LPL Financial or Capital Investment Advisers.

Securities and Advisory services offered through LPL Financial. A registered investment advisor. Member FINRA & SIPC.

The financial professionals associated with LPL Financial may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.
=================================
CONNECT WITH PETER CAVELTI

Connect With Peter Cavelti
Subscribe to Peter’s newsletter at https://cavelti.com/

=============================
CONNECT WITH EMERSON:

Website: www.CIAdvisers.com