Transcript

Hello, this is our weekly market alert video for the week ended June 4, 2021. And I have to tell you that I am in a semi-good new good mood, I just found out that my wife is going to be going to my daughter’s baby shower, which is in July, and I’m not invited. Now I’m like, wait a minute, you’re going all the way to New York, you guys going to have this big party and I don’t get to go. So I’m going to be stuck here working.  

But anyway, this is not about that. This is about the markets and what’s going on. And this week, we got some new data with regard to the jobs numbers, and they came in not too hot, not too cold, just right. 540,000 new jobs, less than expected, but still pretty strong number compared to the last number, which was 260,000. So it looks like the number of people that are going back to work is accelerating. And that, of course, it’s a good sign. And we continue to be optimistic about where we go from here.  

With regard to the stock market and the economy, a lot of growth is still ahead of us. Even though you know, you may be thinking we have inflation, as we’ve said, we believe that it’s transitory. And I got a cute cartoon from a from a viewer who said it was the Federal Reserve, looking at this lady with a golf grocery card attached to a balloon called inflation. And it’s like taking her off into the sky. And Powell, the chairman of the Fed is saying, Don’t worry, it’s transitory. So it looks like even the cartoonists are on top of that transitory word.  

But be that as it may, we do believe that the current inflation is transitory will abate as supply comes on, and growth will continue. The other thing that should help also is that the overseas economies are behind us with vaccines and getting past the pandemic. And so as they come online, we anticipate that there’ll be further growth as well. So if you need more evidence, there’s a study that was done by the Nautilus group research firm. And what they did was they looked at what happens if the first five months of a year have the S&P, the stock market goes up by more than 10%. What happens in the 12 months after that, that situation, according to their research has happened 10 times in the past, and in all 10 of them. A year later, the stock market, the S&P was up more than 11%. So that looks good for us as well.  

So we anticipate that the growth will continue, the economy will continue to recover more people will go back to work. And so the stock market should be the beneficiary of that, and therefore our investments as well.  

Now, again, we have not discounted the concern that I think many of you have that inflation could come in a big way. And we agree with that. If we continue to borrow as we are, we believe it will be inflationary and potentially in a very bad way and could cause some significant market corrections in the future. We don’t see that coming at least for this year, if not the first half of next year.  

So right now, there are some storm clouds but they’re off in the distance. Right now. enjoy the sunshine and enjoy your second childhood without parental supervision. I’m going to be here working while my family is having fun. Apparently they hired a bartender for this the baby showers had bartenders—who knew? I said can I be the bartender? No, you’re not you cannot come to the party.  

So I’ll be here home alone, working on finances and keeping the ship going and all that kind of stuff. In the meantime, thank you for watching this video. We hope you are enjoying the beginning of summer, and that all is well with you. 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.