Transcript

Hello. I’m Ken Moraif, founder of Retirement Planners of America, and this is the Weekly Market Alert video for week ending October 30, 2020, and I think if you’ve been watching what’s been going on in the stock markets, you’ve seen that this has been a really lousy week for investors. The S&P and the Dow both have seen some large declines, and I want to go over that with you and talk about that. But even in the most dire of times as we are now with the pandemic, which has affected just about everybody, I think having a little levity and some humor is a good idea. And so, last week, I mentioned that my birthday was coming up, and that if you wanted to get me something, you could get me something little and red to fit in my garage. A Ferrari would be nice, and I’ve been saying that for many years now. It’s a running gag I’ve had, but guess what? Somebody actually took me up on it, and they got me a little red Ferrari, and I’m like, how am I supposed to fit inside that? How do I drive this? I don’t think you understand what I meant. So, that’s very funny.

Now, let’s talk about what’s going on in the market and what we see. First of all, let’s go back to March and look at where we were then. Back in March when the pandemic was first announced, the future was very, very uncertain. There were very few people that knew what was going to happen. We did not know at that time that the Federal Reserve was going to jump in and practically buy up the bond market. We didn’t know that there was going to be a $3 trillion stimulus package. We didn’t know that there was going to be all the stuff that’s happened since then. And so, without knowledge, our brain, we’re designed, essentially, for self-preservation, and so our brain goes directly to the worst case scenario, and in many cases, this causes big sellouts in the market as we saw this year in March. Now, fast-forward to today, we’re in a different place now.

We know a lot more about the virus. We know a lot more about how to treat the virus. We know a lot more about how the government is going to behave given the virus. We know what to do during the lockdowns. Many businesses have figured out how to deliver, how to have you come and sit outside, bring things out to you while you’re in your car. So, we have much more information, much more knowledge about how to deal with this stuff than we did back in March. So therefore, the selling that we’re seeing the market right now, it would surprise us greatly if it turned out to be similar to the selling that we saw back in March. Particularly when one of the great drivers, we think, of the selling we’re seeing now is that the stimulus package, essentially, was put on hold until after the elections, and certainly that’s not a good thing in the short run, but we believe that after the elections – exactly when, we don’t know, but after the elections, there will be a stimulus package coming, and when it does, we believe that will give consumers spending power and drive the markets back up. So, the selling we’re seeing now, we look it as potentially a buying opportunity, and we believe there’s a lot of money sitting there waiting for the selling to drive it down to a price they like, and we think that we could see them jump in at that point. The other thing, also, is that we are much closer today than we were back in March to a vaccine. In fact, I read that there are 32 potentially viable candidates for a vaccine that are in trials right now, and apparently one or two of them may actually be a vaccine. So, given all of that, we think that right now would not be a reason to panic.

However, we do have our Invest and Protect™ strategy in place, and should we get to the point where we believe it’s time to take action and get out and protect ourselves, just as we did back in March, we certainly will do that. Now, if you don’t have an Invest and Protect™ strategy, my question to you would be, what if it goes down 30 more percent, or 40 more, and it stays there? What if we end up with a bear market like we saw in 2008 where the S&P, the stock market went down 57 percent, and it took years to recover. What if it takes 3 or 4 or 5 years to recover? Then what are you going to do? Are you going to be able to retire like you want to? Are you going to be able to support the lifestyle that you have like you want to? I think if something like that happened, you’d find yourself in a difficult place. So, I encourage you to visit with one of our retirement planners.

You can go to our website, click on “Meet With an Advisor.” We’ll sit down with you. We’ll go over our Invest and Protect™ strategy with you. We’ll go over how we think you should diversify your portfolio. We’ll talk about Social Security decisions, all the stuff that has to be done. So if you’re within 5 years of retirement or you are already retired, then we would love to meet you. We’d love to sit down with you, see if we can help you. No charge or obligation, and we will part friends. So please take advantage of this offer, and you can do that very easily, okay? Now, you may have noticed that I shaved. My wife basically put her foot down. She said, “No, the beard’s got to go.” And in Texas, they have an expression that says that “If mama ain’t happy, ain’t nobody happy,” and I think all you husbands, you know what I’m talking about. But at the same time, there’s also, “If papa ain’t happy, nobody cares.” So, thank you for watching this video. Let us help you if we can. Go to our website and sign up for a meeting with one of our advisors. Thank you. 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.