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Transcript

This is our weekly market alert video for the week ended Friday the 13th. Ah, and this week, we are going to talk a little bit, not so much about what’s happened in the prior week. But what bodes for the future. And the three things that we’re looking at that we think are the most important. But before we do that, I just want to say that next week, my middle daughter, Aubrey is getting married. And so that’s a big deal for us. Leaving next week to go for that. I’ll keep you posted on how that went, I’m sure it’ll go very well. And then, of course, we’ve got our grandchild coming. The next three weeks are going to be very, very big for our family. And I’m very excited about all of that. For those of you who have grandchildren and who have children who are getting married. Congratulations. You know what I’m going through as well. 

There are three things that we’re looking at right now, in terms of the new all-time highs. And of course, you know, we said that we would see 35,000 on the Dow and we did, we said that there would be more all-time highs coming after that. And we continue to see that being the case. There’s a thing going on right now, which is called Tina. And Tina is there is no alternative, Tina. And basically, what it’s looking at is where else besides equities, the stock market is opportunity showing, you know, cash is not paying anything bonds or have very low yields these days. People who are looking to get yield to get returns are finding they are almost being herded into the stock market. And you have that you have a growing economy, the economy is showing good signs of recovering and healing.

The Delta period, of course, is the wild card. But if you look at what’s happened in Europe, and you look at elsewhere, where the Delta variant really spiked before us, we’re kind of behind the rest of the world on that. It looks like it has lasted about a month and a half before you tapered back down again. So hopefully that’ll be the case here, we’ll see a spike, but it’ll come down in a month or two from now. We’ll be past it. Hopefully, that being the case, then we think we’ll continue to see growth, we’re seeing people going back to work, the jobs numbers, as we described, have been very good. And profits should follow. And so those are all good things. In addition, we have the Federal Reserve, which is committed that they’re not going to do anything, they’re going to be totally behind getting the economy back. They’re engaged, they’re not going to raise interest rates going to keep it low. 

You have a friendly fed, you have a growing economy, you have very low interest rates where people can invest. The stock market looks like the only game in town. And because of that, we think that we will continue to see new all-time highs. We don’t think the second half of this year will be as good as the first half. But we do think that it’ll continue to grow into the middle of next year. Now, having said all of that, what could upset the applecart? Well, the one thing that the Federal Reserve has said over and again, is that the inflation that we’re experiencing right now is transitory.

Well transitory is how long is that two years from now, we’re still going to be saying, it’s only transitory, because inflation can cause a lot of damage. And if it is, in fact, short lived, it’s going to be done by the end of this year, then that’s different than if we’re still seeing high inflation, you know, next year and into the end of next year. Our view is that we are seeing signs of the Fed being right, that the inflationary pressures are abating in a lot of places, it’s still not completely healed, there’s still a mismatch between supply and demand, which is where the inflation is coming from. But we do think it is transitory, but time will tell. If it’s not, and inflation does continue, then that could cause a significant correction in the market, because the Fed will be forced to act. And if they do, the markets will react very negatively to that news. But right now, everybody seems to be on board with its transitory and all as well.

And so, we’ll have to wait and see. Now of course, one of the advantages that we believe we have is that we have our investment protect strategy so that if we are wrong, and we don’t see new all-time highs, but we see some really bad lows, then the chances are very good that our strategy should get us out in time before we experienced any significant crippling losses. I hope that that gives you peace of mind as it does us. That’s where we are. Things are lookingThey’re scary, but good and we look forward to new all-time highs heading into next week and the week after and the week after. Thank you for being a client. Thank you for watching this video, and we’ll 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.