Hello, I’m Bond. James Bond. Actually, no, I’m not. I’m Ken Moraif, and this is our weekly Market Alert video. I am wearing a tuxedo, as you can see. I’m going to a wedding, but as always, making this video comes first..but the wedding is next, so I’m all spruced up. What do you think?
Anyway, let’s talk about more important things. Let’s talk about what’s going on with the markets. And of course, as always, when Jerome Powell, the Federal Reserve Chairman speaks, the world stops—or at least economic world stops, and it listens. And basically, what he said is we are on schedule, we’re not going to change much, but we may start reducing our bond purchases. As the Fed buys bond, they create demand for bonds. As bond prices go up because of that demand, that drives interest rates down. So, what they’re saying is that later on this year, they may reduce the amount of their buying; and therefore, allow interest rates to rise.
Now, the Fed did not say that they’re going to raise interest rates; they said they’re just going to take away the downward pressure. So that’s a little bit of a good sign because it means the economy continues to improve and the labor conditions seem to be getting better.
They also said that the Delta variant should not be a permanent condition, so we think we’ll be able to play through that. So again, it all looks, and as we’ve been saying, we anticipate new all-time highs through the rest of this year. I don’t know how many highs, but so far, we’ve had over 50 for the year. We might even get to 100…who knows?
Certainly, we’ve seen continued profit improvements for companies as people go back to work. And yes, there are some disruptions in the supply chain due to the COVID-19 Delta variant; but again, we believe those will pass. It looks like things are going to be getting better, and our investments should look very good.
Now, obviously, we don’t have a crystal ball. At any time, things can change dramatically. And that’s why we have our Invest and Protect Strategy™ ready to be implemented at any time—because things can change very, very quickly.
As we saw last year, right out of the blue, the pandemic came at the market, and the S&P went down 43 percent in the span of one month. We don’t want that to happen, and as we protected you from it last year, we will do so again in the future. We will get out to protect you. But right now, we don’t see that coming.
Therefore, I think everybody should put on their tuxedos and go have a nice night on the town! It’s actually my middle daughter’s best friend who is getting married. The invitation says black tie is optional; and anytime it’s optional, I’m going for it. I’m wearing my tie.
Thank you for watching this video. Be sure to share this with your friends, your business associates and your family. Also, make sure you subscribe. We had another 2,000 people subscribe to our podcast and our video this month so far, and it’s very exciting. So please do subscribe, and you’ll can get notified on your devices wherever you are—on your terms and your schedule. So again, thank you for watching this video and we will talk soon.