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What Comes Next?

Hello, and welcome to our Market Alert video for today, which is September 30, 2023, the last day of the quarter, and boy has this been a miserable quarter. I want to get into all of that with you here. But first I’ve got a couple of things I want to share with you. One is we had our charity golf scramble, our charity is called RPOA Cares. And we put on a golf scramble, we invited clients to it. And we wanted to raise money for Minnie’s Food Pantry, and they assist seniors with what they call food insecurity, want to help them to have meals. And the whole thing was a very, very big success. We raised enough money to provide 8,640 meals for the Minnie’s Food Pantry, they were so excited about it that they are now going to partner with us for next year 2024 and provide volunteers at the golf scramble and everything. And in fact, we’re thinking was such a good idea that we might actually take it out to the rest of the country. So if you’re watching this from the not the Dallas Fort Worth area, then it may be coming to you. So we can participate in a golf scramble and raise money for people that need our help. So a wonderful thing. The other thing I wanted to share with you is, many of you are not aware that we have an insurance company called MIG, and MIG’s goal is to provide you with unbiased, no agenda, advice with regard to your insurance, that is your long term care, your life insurance, your disability annuities, all of those things. And so we provide the service at no charge, as I said, or obligation, we want to review your policies. And we’ll tell you if they are good for you or not good for you. If you should replace them, get rid of them. All of that. And we’ll do it for you at no charge or obligation. The person you’ll talk to our representative from MIG gets no commissions they get a salary. So, they have no dog in the hunt, as they say in Texas. And so, take advantage of that. If you’re interested in having a review of all of your policies, then talk with your retirement planner, and they will make it so.
So let’s talk about where we are, you know, the correction that we thought would come, of course, is here. And corrections are things that are relatively common. If you go back the last 50 years, we average about one a year. So they come and they’re scary when they happen. They’re not fun. But they’re also short lived. And if I asked you to name the last dates of the last 10 corrections, you probably couldn’t over the last 10 years, because they come and go so fast that we tend to forget them. So this correction looks like it started in late July. And the market is now down a little over 7% Since then, which makes it a correction. And so we anticipate that this will be like other corrections. And that is short lived. So maybe another month or so. And then it should pass, which is why we continue to think that the market will be higher, the S&P 500 at the end of this year than it is today. Why? Well, because investors, the stock market investors tend to look six months into the future, when they invest, the market tends to go down six months ahead of when a recession starts and tends to go up six months ahead of when a recession ends. Why? Because investors are looking forward to looking into the future. And if they see the end of whatever’s going on right now they invest accordingly. So we think that the inflation numbers and the Federal Reserve threat of raising interest rates will abate those dark storm clouds will start to clear in the first quarter of next year. So by the end of March and into April or May, we think that we should see inflation coming down in a in a real way, we should see the Fed making sounds like they’re not going to raise interest rates anymore. And we may be coming to the end of this whole cycle. If that’s the case, back it up six months, and where are we? Around now. So yes, it’s been rough and not fun. But we anticipate that it’s going to be a buying opportunity for many and they should drive the market back up through the end of this year.
So from the stock side, we feel pretty confident. And we’re fully invested in our stock portfolios currently. And we hope to participate in what we see as a year-end rally coming. On the bond side we continue to not be in bonds, and it’s a good thing because they’ve been getting hammered here this year and they were hammered last year. And so getting out of them and sitting on the sidelines there has been very good idea, a good a good strategy. And so we remain with the money that normally would be in bonds in money markets. And the money market currently is paying a little over 5%. So we’re getting paid a nice dividend, and we have relatively no risk. And we can wait out the storm in the bond market. We don’t anticipate will be going back into our bonds until March of next year or there abouts. So we still got another six months, we think before we go back in, but we’ll keep you posted on that. So things are kind of developing the way we said that they would a few months ago. So it’s nice to be right. Hopefully, we’ll be right also on the recovery that we see coming. And that by the end of this year, all should be well.
So thank you for watching this video. And I hope that it finds you in in good health. We hope you are healthy, wealthy, and wise. And for those of you who are retired, we hope that you are out there. You’re a skipper now. And we hope that you’re out there SCWPering because that’s what SCWPers do. They SCWPer they are out there SCWPering. And so we want you to be doing that and enjoying your second childhood without parental supervision. And so we hope that’s all coming true for you. Please share this video with as many of your friends and family and business associates we want to help as many people become SCWPers as we possibly can. It is our noble purpose, and we want people to be financially secure. 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