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The Deadly Duo

Hello, and welcome to our Market Alert Video for today, which is September 8, 2023. And this is actually a very interesting video for us because we’ve been titled it “The Deadly Duo”. And of course, we’re talking about the Federal Reserve, and inflation, you put them together, you’ve got the deadly duo, as opposed to Batman and Robin, which were the dynamic duo. So we’re gonna get into that here in just a second. But I played tennis this morning, for the first time in a month, a month ago, I my body was just feeling great, I was playing very well. So I overdid it, of course, and I pulled my back. So I’ve been recovering rehabbing, and all the rest of it, felt good enough to play. So I went played this morning, but I had to stop after about 45 minutes, because it was it just felt like it was gonna get hurt again. So I’m going to say I’m about 65% there, may not be able to play tennis for a while, maybe another two or three weeks. It’s killing me, it’s killing me, especially with the US Open on television.
But anyway, let’s talk about the deadly duo, inflation and the Fed. So next week on the 13th, we’re going to be getting the inflation numbers, and we expect him to come in hot, we think that inflation is going to start going back up again, it already has as we thought it would. And so we think it’ll go up even more and trend towards that 4% that we think it might get to before the year end. And then we think because of that the market may not like it, you know. If the Feds gonna be raising interest rates, even more than maybe people anticipated, because inflation is coming in hotter, then that could impact profits. And of course, profits are what drive the stock market. As you know, that’s what we think. And so we think that’ll be received badly. And we’ll get that inflation shock, part two, and market could don’t go down three or four more percent from here.
Now, we do believe that by the end of this year, the investors will have digested this whole thing. And the impression will then come upon investors that next year, the Fed will get inflation under control. If that’s the case, then all is not lost, and investors will come in. And that’s why we think that the stock market will be higher at the end of this year than it is today. Because of the fact that inflation is still hot, and the Fed may have to raise interest rates some more, we’re still not ready to go back into our bond portfolio. So that portion is now still in our money market fund. And as you guys know, we’re making over 5% over there, not a bad returned while we’re waiting for the storm to pass on interest rates and inflation and the Fed. And the bond market should start to improve after that.
So right now things are happening as we thought they would. And we think next week, we’ll validate our view. And we’ll continue to be fearless forecasters, the important thing for you to know is that we have our sales strategy, because it is certainly possible that the Fed has overdone it. They’ve raised interest rates too high, too fast, we get a big bad recession. And with it, we could get a big bad bear market. And because of that we are still very happy we have our sales strategy ready to be enacted. So that’s where we are.
I hope you have peace of mind. That’s our goal that you have peace of mind and that your money lasts as long as you do. And for those of you who are retired and are now SCWPerS that are enjoying your second childhood without parental supervision. That’s fantastic. Good. Good for you. We hope you are. I was talking to a client this week and he goes “Ken I’m going to be a SCWPer in one year.”
I’m like, “Oh, so you’re going to retire?”
He goes. “That’s right. I’m going to become a SCWPer.”
So we want that for you. If you’re not retired, if you are congrats. Share this video with your friends recommend us to as many people as you possibly can, you know with the way things are going right now with inflation and everything else. They’re probably very nervous. And certainly after last year, they they’ve lost some money. And so we’d like to help them if we can so recommend us to your friends and your business associates. We’d really appreciate that. All right, so that’s the video for this week. Hope it reaches you in good health and spirits and we’ll talk soon!

Please note: transcript has been modified after the time of recording. 

Economic indicators and stock market performance cannot be predicted. Opinions expressed regarding the economy and the stock market belong solely to Ken Moraif on behalf of Retirement Planners of America and may not accurately portray actual future performance of the economy or stock market outcomes. Opinions expressed in this video is intended to be for informational purposes only and is not intended to be used as investment advice for individuals who are not clients of Retirement Planners of America. All content provided is the opinion of Ken Moraif, CEO and Founder of MMWKM Advisors LLC (d/b/a Retirement Planners of America). ©Copyright 2023