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Transcript

This is our weekly Market Alert video for the week ending November 12, 2021.I want to talk with you this week about something that I’m not seeing in the news a lot; but that I think will affect our investments and want to kind of give you a heads up about that.

But before I do that, I want to give you an update on the whole grandfather thing. As you guys know, I’ve lost my wife to my grandson. Two days ago, my alarm clock goes off as it does every day at 6:30 am. I wake up five minutes later, my phone rings, and it’s my wife. I’m like, “Why is my wife calling me?” I said, “Hi, Fay.” She said, “Hi, I’m an hour away from our grandson.” He’s a two-and-a-half-hour drive away, which means she left at 5 am. I’ve lost track of her. I don’t even know her anymore. She has a new interest, and that’s my grandson. However, I did get revenge. I love spaghetti, and my wife will not let me eat spaghetti because she says it has gluten and that creates inflammation, can make you more at risk for Alzheimer’s, arthritis, and all kinds of bad things…so, I never get to eat spaghetti. So, my revenge is I’ve been eating spaghetti when she’s not here. Mm hmm. How ‘bout them apples?

Let’s talk about what’s going on and what we see as a concern, but not something to be overly concerned about. The virus, as you know, has been coming up with new variants. And if you look over at China and Russia right now, they are shutting down entire provinces. Russia is shutting down entire parts of their country. Historically, they are two months ahead of us in terms of when we see the variants here. The original COVID-19 started there, came over here, and then the Delta variant started there and came over here. So, it’s only logical to think this new whatever it is will eventually come over here as well. As we saw in September, when the Delta variant came, it caused a big down in the markets. September was one of the worst September’s in decades. We anticipate this one will probably have a deleterious effect on the markets as well—so prepare yourself.

Now, Do we see that as the beginning of the next bear market and a big, bad recession and all that? No, we don’t. In fact, if it does do that, we see it as a buying opportunity. It’s probably going to be compounded by the fact that we have high energy prices right now with heating and all that. It’s going to be a very rough winter. We could see another COVID variant come through, and we’re going to have people who are unable to heat their homes as they would like, especially given how expensive it is. That’s going to bite into their ability to do Christmas shopping. Of course, you know, retailers depend on the Christmas season to a great degree for their profits for the entire year.

All of that’s going to probably coalesce into a very, very volatile and rough winter season. However, having said that, it’s not going to be the Great Bear Market. It’s not going to be the great recession, in our view. If anything, it’ll be a buying opportunity, as I mentioned.

Now, having said that, we all know that things can change in the blink of an eye. Something new can come along, or the assumptions that we’re making about what is here turned out to be completely wrong. If that’s the case, then of course, we could have a big bad recession and a big bad Bear Market. We don’t see it, but it’s possible. And of course, that is why we are so happy and glad. We can sleep at night because we have our Invest and Protect Strategy™ ready to be implemented should this devolve into something really bad. We hope that you have peace of mind. We hope you are letting us do the worrying so that you don’t have to. We saw new all-time highs last week, as we said we thought we would, and we believe we will see those again here in the next few months. So, put your seatbelt on—it’s going to be a rough ride, but we think about six months from now, things will be higher than today.

Thank you for watching this video.

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.