Transcript

Hello, this is our weekly market alert video for the week end September 25, 2020. Thank you for watching. I’m glad you’re
with me. A lot to talk about for this week. Of course, the big, big deal is the Supreme Court with the death of Ruth Bader Ginsburg. Now the battle lines are drawn between the Republicans and the Democrats about the nomination, before the elections, after the elections, who it’s going to be, etc. We still have the suspense over the stimulus package and are we going to get that or not, and then of course, where does all of that take us. So let me kind of put things in perspective from our view point. As we’ve been documenting for you over the last several weeks, we believe that the single most important thing to keep your eye on is the stimulus package.

The reason in our view that the stock market has not crashed and stayed down is because 70 percent of our economy is consumer spending, and if the consumer has money to spend, that keeps the economy going, keeps profits going, profits drive stock prices and that’s why we think the stock market has stayed up where it is. Now, if that stimulus is gone for long enough, consumers will stop spending, not be able to make their mortgages, not be able to make their rent payments, maybe stand in food lines, God forbid, and it could get really bad, and we think the stock market could fall on that news. So the selling that we’ve seen this week, we believe is a function of the fear that a package is not forthcoming given that now we’ve added gasoline to the fire as if they didn’t have enough acrimony, now with the Supreme Court thing, they’re going to have even more, and maybe now they’re not going to be able to get together on a deal, and if they can’t do that, then we can see everything fall apart, and so that’s why we think we’ve seen some selling in the last few days.

Having said all of that, we believe there will be a package, and in fact, if you look at it, there has been movement. The Republicans were at 1 trillion. They are now at 1 trillion, 250 billion. That’s all, just a trillion, and the Democrats who are 3 trillion have now come down 2.3 trillion, so they’re moving towards each other, and that bodes well for a package coming, and we believe that when that package comes, that we could see the S&P and the Dow set new all time highs. We think that there’ll be a surge, and so therefore, we remain cautiously bullish. However, we always have our sell strategy ready to be implemented. Don’t you ever forget about that because if it decides to tank, and there is no package and we see the market go way down, we are going to take action to protect you. You can count on that.

Now, I want to be sure to invite you. You should’ve received an invitation already. If you haven’t signed up for it, our National Client Event, Virtual National Client Event is coming up. I’d love for every single client to attend that. We’re going to be talking about the returns we’ve had over the last 3 years. We’re going to be talking about our strategy past and future. We’re going to be answering questions. We’d like for you to submit your questions so we can answer those. We’re also going to be talking about our investment principles, our core values so that you understand where we’re coming from when we’re making decisions for you, etc. So all of that is going to be at the National Client Event, and I hope that you will attend. In the meantime, our goal is for you to have peace of mind and for your money to last as long as you do, and we hope that you’re letting us do the worrying so that you don’t have to, and that you’re enjoying the rest of this fall as much as you can. So, again, thank you for watching this video. Thank you for being a client, and we will 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.