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The Great Rotation

Hello, and welcome to our Market Alert video for today, which is January 19 2024. I hope this video finds you healthy, wealthy and wise and warm. The cold here has dissipated a little bit. And it’s a much beautiful, more beautiful day outside than it was. A lot to talk about want to dive right into it. For all of you in SCWPer nation, I hope you’re out there SCWPering your little tails off. And for those of you who are not SCWPerS yet, I hope that we are getting you there, we’re working diligently to get you to that point where we can celebrate that you have retired and are now going to go enjoy your second childhood without parental supervision. So let’s talk about we just got some data on consumer confidence. And consumers seem to be pretty confident despite the fact that prices are ridiculous. And jobs seem to be steady and holding. And that gives confidence in the markets, that the economy is not going to head into a really bad recession, and cause the economy the stock market to fall off a cliff. And all the terrible things that come with bad recessions seem to be dissipating. And so as you saw today, the market was up quite significantly. Now, what does this tell us about why this is happening? Well, our view is that it is a great rotation that’s happening. So the end of last year, we had a lot of people that thought that the interest rates, the Federal Reserve, inflation, all of that would be done with by March, and that the Fed would start lowering interest rates in March. And we would see, you know, that happen, and profits soar, etc. So the market went up significantly into the end of the year. Now, what’s happening is, the economy is a little stronger than what we thought and inflation may not come down as fast as we thought. And so now the thought is that it won’t be till later in the year. And so those people are say, Okay, I made a bet I was I got the market went up, I’m going to take my profits, and they’re going to, they’re going to sell, but then you have the people that are now saying, Well, okay, you made your profit, but I’m going to look into the future. And I’m going to say that I think the Feds gonna lower interest rates in August or there abouts. And that’s when I think things are really going to take off. So I’m gonna start buying now. And so that rotation out of the people from last year and the people from this year is happening, in our view. So what does this tell us about the rest of the year? We think, as we’ve been saying that both stocks and bonds should have a good year this year, the stock market for the reason that I just mentioned, we think should do well, no big bad recession, lowering of interest rates, cheaper money, consumers have more purchasing power, more profits, higher stock market, that’s our view. The other side of it is that if bonds if interest rates are coming down, as you guys know, bonds tend to go up when interest rates come down. So the Fed is lowering interest rates, guess what, and since bonds have experienced one of the worst bear markets ever for bonds, it is our belief that it’ll have one of the biggest rebounds ever for bonds. And so we think our bond portfolio should do well also. So for now, it appears that what we anticipate will happen is going to, and we feel pretty good about it. However, as we always know, things can change in the blink of an eye, something can happen overseas with the wars that are going on over there. Oil prices could skyrocket, who knows what could happen. And that’s why we always have our Invest and Protect Strategy ready to be implemented, to get out and protect what we’ve built. As soon as we see that the danger is such that we need to take action you can count on us for that and we hope that it gives you peace of mind. That’s what we do that for we want you to have peace of mind, and we want your money to last as long as you do. How about that? So thank you for watching this video, share it with as many of your friends and family as you possibly can. We want to create as many SCWPerS as we can we want the whole country to be covered in SCWPerS. So thank you for those of you who have sent friends our way please if you haven’t do so we want to help them to have a fantastic 2024 if we can. Alright so thanks for watching this video and we will 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