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What Are We Waiting For?

Hello, this is our Market Alert video for today, which is Friday October 27, 2023. And we did send you a video yesterday. So this is two in a row. But given the circumstances, we thought that it was warranted.
Have gotten some emails from you, especially after we sent out the video yesterday, saying, You know what, why are you waiting? What are you taking so long for? You know, obviously, we should be getting out? And so I wanted to address that question, because obviously, you know, it does cause frustration that we’re still in when the market is going down like it is, but want to tell you kind of give you a perspective as to why that is. We’ve looked at our strategy going back many decades. And coming this close to the sell signal has happened multiple times. The challenge is that when it does, it could go back up again. 2004 was an example of that, where it actually got within a quarter of a percent of our sell signal. I mean, literally, it was just that close. And right after that it went up 12% into the end of the year, this was in October.
And so fortunately, our strategy did not reach itself signal we stayed in, and we participated in that year end rally. So we don’t want to jump the gun because it could rebound many times after you get a correction like this, the market does rebound quite a bit. And so, we don’t want to get out before our strategy tells us to, even though it doesn’t feel good waiting this long. So that’s the reason for it. And you know, we’ve had multiple occasions where it has gotten this close, in the 2000s and in the teens. And so we don’t want to jump the gun and panic, we’re so close now to getting out that if we did it now, the difference between where we are and where we would get out is relatively small. So the downside is very small. But the upside potential if it were to rebound is quite significant. So we don’t want to miss out on a rebound by jumping the gun.
Now, there’s no guarantee that even if we do get out at our signal point that it won’t go up after that, certainly that’s possible, but it’s an unlikely event. Historically, it’s only happened two or three times since the 30s. So that’s something that we don’t expect to have happen.
I know that right now, These are trying times it’s scary with wars and inflation, the Federal Reserve, and you know, all the stuff that’s going on. And we understand that we hope that letting us make these decisions for you. We hope that having a sales strategy that at least puts a floor where we will get out it’s not an unlimited downside with our strategy, which without our strategy would be the case. And you know, when I think of people who have no strategy, as anxious as you’re feeling, I’m sure they’re feeling way more because there is no endpoint for them. They could go down all the way as far as the market will take them. So I hope that at least that part of it gives you some peace of mind letting us take care of it for you also, I hope that does as well.
I appreciate you so much. You know I cannot tell you how grateful we are that you’re our client, you trust us, and you give us the opportunity to be your guide be your retirement planner. So, I wish I had better words to give you at this point but that’s the reality of it and should we reach ourselves signal we will act we will get out and you can count on that. Okay, so thank you 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