Hello. This is our weekly market alert video for the week ended February 12, 2021. We’re already almost halfway through February. The year is flying by. It’s going by too fast but it is Valentine’s Day weekend so I want to wish all you valentines a happy Valentine’s Day and let’s talk about the week just ended, and man, it was one of those weeks where nothing happened but I’m exhausted. It’s like it was up and down and up and down. It was all over the place and really nothing happened, but man, maybe you are not as exhausted as I am. You probably don’t watch the markets like I do, but yeah, that’s how I would characterize last week. Now, one of the things that was big news is that on Friday, President Biden began discussions or floating the idea of a new stimulus package, an infrastructure spend, and so, you know, I think it’s needed. We do need our bridges and our freeways and all the rest of our infrastructure. It needs an overhaul for sure so I think it’s needed, but this is going to be, if it comes through, on top of the $1.9 trillion package that’s in the works right now for the stimulus package for the pandemic, so we’re talking about three more trillion dollars and so what does this all mean? What is it going to do?
Well, as we’ve been talking about over the last several months and maybe even years, when the government infuses money into the economy when there is a stimulus package, that tends to drive stock prices upward and so because of that even with another trillion dollar infrastructure spend project, we think that that will drive the markets upward and we will see new all time highs later on this year and potentially into next. Now, a lot of people have been asking me, do you think that this is a big house of cards? Can this go on forever? Can we keep just borrowing and spending forever with no repercussions? The answer is no, I don’t think that. You know, do you think that inflation could come? Do you think that income taxes could rise? Yes, I do but all of those things I think are going to be not this year.
I mean, taxes may go up this year but not the rest of those things with this much money in the system, this much stimulus, it’s just hard to see how we could see a market crash or a recession or any of that kind of thing, so in the short run we think we’re headed in the right direction with our investments but certainly, you know, in the future we may see higher taxes, inflation, stock market go down, etcetera, so I’m very glad therefore that we have our invest and protect strategy because in the eventuality that I’m wrong, it happens sooner or that I’m right, it happens maybe a year or two from now, we have that in place to help protect us from massive downside and it helped us last year and it’s helped us in the past and we anticipate that it should help us in the future as well, so I don’t know if I’m making you feel better but I feel I can sleep at night knowing we have our strategy despite all of this uncertainty, all this stuff that’s going on so thank you for being our client and thank you for letting us facilitate your second childhood without parental supervision, whatever that means to you. We want to worry about all this stuff so you don’t have to. We want your money to last as long as you do and we want you to have peace of mind, so again, thank you for allowing us the honor and the privilege to be your retirement planner and we will talk soon.