Transcript

Hello. This is our weekly market alert video for the week ended April 16, 2021 and boy, we got a lot of very, very positive economic data, and that drove the Stock Market, the S&P and Dow to new all time highs. And the question that I’m getting asked now is are we in a bubble? Is this all too much? Is the debt going to cause us to crash? So that’s we’ll talk about in this video. So first of all, let’s go over the data that we got for March. Blow out numbers. The jobs’ numbers were better than expected by far. Retail sales, better by far, blew it out of the water. So fantastic recovery numbers.

The economy is opening up. People are spending money. All that we told you would happen. And the thing about investors that I’ve found over the last 20, 30 years that I’ve been doing is that they tend to be emotional. They tend to overreact and they tend to drive the market too high and too low. They tend to overreact and go too optimistic or too pessimistic on the down-side. So as we go through the rest of this year, as the economy opens up and as profits begin to soar and more people get jobs, we think the numbers are going to continue to be really just fantastic. And as we said, we think this is going to be the greatest, fastest recovery in the history of our country. Even the great Depression, it took 25 years to get back to where we were before. This one, one year is what we think it’s going to take. So this is very, very fast. The recovery is going to be spectacular. Profits we think are going to be fantastic. Companies are going to be beating expectations left and right.

Investors are going to take that news and think, wow, this is great, I got to get in on the action and it’s going to drive the market way up to new all time highs. So get used to every week, I think for the rest of this year, new all time highs may happen. Many, many new all time highs for the rest of this year. So does that create a bubble? Does it create a possibility of a big bad drop? Well, as a matter of fact, yes, it does. As we’ve told you in previous videos, we think that the drive up in the market is driven. The drive is driven by pent up demand, savings. People didn’t spend money last year. They’re going to double up this year. The stimulus checks. All the stimulus for the infrastructure plan which we anticipate some version will get passed. So all of that is just pumping money into the system and that money’s going to drive the economy and profits.

However, hopefully, the borrowing will not go on forever. Certainly people’s savings from last year will get spent. The stimulus checks will get spent and we’ll have a calm down in that spending level, and when that happens profits will start to not look so good as they were before. The comparisons between before and now will be not as good, and investors will say, oh, my gosh, now we have inflation, now we have higher interest rates, now we have all this and they’ll run for the exit. So yes, we could have a big correction in the offing. However, when will that happen? We don’t see it happening this year. Until we have full employment and until we see inflation actually start to pick up and the feds saying we are going to raise interest rates, we don’t see a big correction. They’ll be bumps on the road for sure, but those would be pauses on the way to new highs.

So we’re very optimistic about where we go from here and what it looks like for the rest of this year, but as we always say, things can change in the blink of an eye. See how fast that is? That can happen very quickly and we want to be sure that we are always ready to react to it, to protect you from bad things and that’s why we have our invest and protect strategy ready to go. And should we need to, we will take action to protect you from major losses to the best of our ability. So what we want you to do is not worry about all this boring financial stuff. Let us do the worrying so that you don’t have to and hopefully, you will enjoy your second childhood without parental supervision over this coming summer, which now that a lot of people are vaccinated, everybody wants to go and do stuff and we hope that you will enjoy the summer with your loved ones, and get to do all the stuff that you didn’t get to do last year. And in the meantime, we’ll be minding the store for you in the background. Okay. So thanks for watching this video and we will talk soon.

MMWKM Advisors, LLC (d/b/a Retirement Planners of America ) (“Retirement Planners of America”) is an SEC registered investment adviser with a primary business location in Plano, Texas. Past performance may not be indicative of future results. All investment strategies have the potential for profit or loss. References to the “invest and protect strategy” (the “Strategy”) and recommendations made under the Strategy from 2007 through 2009 refer to strategies collectively employed and recommendations collectively made by Retirement Planners of America’s principals while employed at Eagle Strategies, LLC., and also at Cambridge Investment Research Advisors, Inc. Four of the five principals remain as principals today, including the Retirement Planners of America’s founder, Ken Moraif, and Chief Investment Officer, Eli Dragon. Retirement Planners of America has been employing the Strategy since its inception in 2011. Therefore, any references to Retirement Planners of America’s performance or its investment advisory recommendations predating 2011 generally refer to recommendations made by Retirement Planners of America’s principals at the respective other firms described above. Like all investment strategies, the Strategy is not guaranteed. It is possible that it can incorrectly predict a bear market (generally accepted as a 20% drop in a market index), which has, in-fact, happened before at Retirement Planners of America and affected its clients accordingly. When the sell / “protect” portion of the Strategy is implemented, affected investors will incur transaction costs and taxable accounts will incur tax consequences. However, when implementing that portion of the Strategy, Retirement Planners of America generally believes that the benefit of avoiding bear markets outweighs the burden of these transaction costs and tax consequences.