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Why Your Hotel Safe Is Not Safe! But Inflation Could Be.

Hello SCWPer Nation and clients, it’s Ken Moraif. I’m now in Bordeaux, France after our crossing on the QE II. And we are now in a quaint little hotel in a wonderful town Bordeaux. And so this is a very important day, we’re going to be talking about inflation. In fact, in just a few minutes, the big numbers are going to drop. So we’re gonna go in the other room, and we’re gonna sit in front of a computer together, and see what the inflation numbers are and what that means to us. But in the meantime, as you know, we’re always about protecting your money, right. And so what we want I want to do is share with you why you should never ever trust the safe in your hotel room again. I’m gonna give you a demonstration of why it is not safe. Okay, so let me go over here and show you how, or why. Alright, so first of all, this right here is the safe. And what I’m going to do is I’m going to get this box right here, because it has millions of dollars in it. And I want to keep it safe. So I’m going to put it here inside this hotel safety deposit box. Now what I’m going to do is I’m going to shut it, and I’m going to type in a code, I’m going to put in 4321 and hit the pound button. And that locks it, see that it’s locked. Now you would say it’s safe, right, you can go out for a walk, you can go for a tour, and all your million dollars that you put in there are all very safe. Well, I want to show you I’m gonna turn into a bad guy right now. And I’m going to show you how to break into that supposedly safe hotel safe. So here I am as a bad guy. And what I’m going to do is I’m going to show you how to break into this, what I do is I press this button twice, one, two, and then I type in 000000. And guess what happens? Voila, I can open it, I can get the box in it that has the million dollars worth of stuff. And I can take it away. And by the way, if you’re wondering what voila means that’s French for tada! So now you know that you must never again trust the safe in your hotel room, take your stuff with you get a little fanny pack. And that’s the way to keep it safe in our view. All right, let’s go in the other room. And let’s see, we’re going to count down the inflation numbers. Okay, so here’s the big information drop, we’re gonna get the CPI numbers, and I’m going to kind of watch for it here, it’s going to drop in 10 98765432. And there it dropped. And the numbers look like, Ah, so inflation came in at 3.4%, which is exactly what the market was expecting. And so that’s very good news. And actually, you know, now that we see this, it looks like this is the third print in a row, where we’ve had the inflation numbers come in in line. And also we’ve had jobs and consumer confidence all come in in line. So this is the third report in a row looks like the market is probably going to like this. As I look at it right now we’ve had the futures have spiked. So the markets liking it so far interest rates have dropped, which is good for the bond market. So let me analyze this for you for just a minute. And I’ll be right back a few moments later. So I’ve reviewed the numbers, what’s behind this inflation print, and it looks like that, as I said, this is the third report in a row for jobs, inflation, consumer confidence, and the numbers are not getting worse. So that’s a very positive sign. And that’s going to be well received by the market, we believe the initial response, which sometimes is wrong, right now is very positive with the futures. The other thing also is that it appears now that there’s going to be, in our view, a rising confidence that the Fed is actually going to lower interest rates this year, after all, there was some concern that they wouldn’t. And so that’s going to be a very positive thing. So right now it looks like they the target might be actually that the interest rate on the tenure, which is what drives bond prices may come down all the way to three and a half percent by the end of this year. If that’s the case, then what we’ve been saying all along here this year, is that bonds should have an phenomenal rally, the aggregate bond index, if you look at historical precedent, which doesn’t guarantee the future obviously, has resulted in a 10% increase in a 1% drop. That would be about a 1% drop in the 10 year, which would result in an aggregate bond potentially rising by 10%. So we’re looking for a big rally in bonds. And there’s no recession in sight right now. So that bodes well for profits. And as you guys know We believe that profits drive stock prices. And as long as profits are not scared of interest rates, companies are not pulling back because the Feds not our enemy. Now, that should bode well for profits as well. So a very good inflation print for today. sounds excellent. We are very, very optimistic. But as you know, we always want to make sure that we have our sell strategy our Invest and Protect Strategy in place because anything can happen suddenly, things can change in the blink of an eye, you know that it’s happened many times before. And so having a strategy to protect against the downside is extremely important in our view, especially if you’re over 50 If you are retired or retiring soon, which is where we like to work with. So thank you for watching this video. I hope you enjoyed it, and you will never again have your money put or anything valuable in a hotel safe after what you saw. Right? So thank you for watching this video 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 RPOA Advisors, Inc. (d/b/a Retirement Planners of America ) (“Retirement Planners of America”, “RPOA”). ©Copyright 2023