Transcript

Hello. I’m Ken Moraif, Senior Retirement Planner and Founder of Retirement Planners of America, and this is our weekly market alert update on the week ended January 24, 2020. Thank you for watching this video.

The headline that we’re looking at right now of course is the coronavirus and the affect that it’s having on the markets. There’s anxiety about is this going to become a global crisis. If it does, it certainly would have a huge economic impact, because if you have a pandemic, people are afraid to go outside — they’re afraid to go into public places — and if that’s the case, then they stop spending money because they’re not going to movie theatres and restaurants and traveling, and all the things that being out in public would entail, and that can have a very dampening effect on the economies of the world. So, rightfully so, the markets right now are jittery about this, and we’ll have to wait and see where it goes.

However, as we look back at previous times, we had the bird flu, and we had SARS, and we had other situations like this, and they did cause the markets to have volatility, but in the end that turned out to be a buying opportunity from an investor standpoint. Obviously, the illnesses and the deaths that came from that were tragic.

Now, we do see this as the same sort of thing. The markets — the S&P, the Dow — have gone up significantly over the last three or four months, and it’s almost like there’s an excuse needed to take profits and we’ve, in previous videos, said that we see a correction coming, and this may be the impetus that investors needed to say, “You know what, I’m going to take my profits,” and we may see a correction here. We do anticipate a correction. That’s a fall in the S&P and the Dow of 10% or thereabouts. However, we see that as short-lived and recovered from quickly, so it would be a buying opportunity if it did happen in our view. And we still see our fearless forecast of the Dow at 31,000 later on this year happening. And so, because of that we would anticipate that even though it may be bumpy, we would recommend to stay the course.

Now, the coronavirus, of course, is something that at this point we don’t know. The World Health Organization stopped short of saying it was a global crisis. They said it was a China crisis. So, for now, that’s where they sit, and so we’ll see if that is upgraded to a global crisis. We’ll have to keep watching that and keep you posted. But for now, we don’t see any reason to panic or to undo anything.

Now, as I’ve mentioned, we are retirement planners — we specialize in that — and so our focus is on people who are within five years of retirement or already retired. And our goal for you is not to make you rich quick. Our goal is to keep you from becoming poor. Our goal is to have your money last as long as you do. And so, to do that, we believe that there are lots of components to that. Obviously dealing with adversity in the markets is important, and our strategy of buy, hold and protect is one that helped us to counsel our clients to be out of all equities in all of 2008 during the last market crash, and so we have that still ready to be implemented should there be another correction of significant proportions.

We also want to talk about things like when to take Social Security and how. We want to talk about how to get income, where to get it from during your retirement. We want to talk about how do you determine if you have what we call your magic number, which is the amount of money we see that you need to have to retire on. So, lots of things to talk and think about, and we’d love to be able to help you with that.

So, RPOA.com is our website, and I thank you for watching this video. And we still see the future is bright but bumpy, and potentially a correction here soon.

So once again thank you, and we’ll talk soon.