Hello, and welcome to our Market Alert video for today, which is August 18, 2023. And we have a lot to report to you. So let me dive right into it.
First of all, we got some additional data this week with regard to consumer spending, to housing prices, to the things that drive inflation. And they all seem to be on the margins, changing a little bit, but not enough to, in our view, keep inflation at bay. And so, our view that inflation is going to pick up and start heading back up towards 4%. Throughout the rest of this year seems to be happening. The market, we said will have what we are branding an inflation shot, meaning that investors who were thinking that, you know, mission accomplished, inflation is under control, the Fed has won, are suddenly going to say, oh, maybe mission is not accomplished, maybe the Fed has not won, and maybe there’s more work to be done, meaning they could raise interest rates some more Oh, no. And they could sell and we said that there might be a 5% to 10% correction that would come from that. And sure enough, from the peak in July to where we sit today, it’s about a 5% drop. So it looks like the correction that we anticipated is has happened, but we think it could go down some more before it’s over as well.
However, having said all of that, the economy continues to show good signs of resistance to recession. And so for now, it doesn’t appear that a big bad recession is in the offing. And because of that, we continue to think that this correction will be short lived, because we think that it could turn out to be a buying opportunity. And that being the case, it could be something that rebounds rather quickly. And as we head into the end of the year, we think we should be higher than where we were before all this started.
So it looks like inflation bottomed in June, as we said it would it looks like it’s heading back up as we said it would. And we It looks like we were going to have a correction as we said we would. So so far our fearless forecasts have turned out to be pretty accurate. And so we want you to let us worry about all this stuff for you. So that you don’t have to, your job is to go out there and be a SCWPer. Right? Your job is to go enjoy your second childhood without parental supervision. And not to worry about this. Our job is to do the best we can to make your money last as long as you do, and also to have you have financial peace of mind.
So hopefully knowing that we have our sales strategy or investment, protect strategy in place, should we be wrong, which we could be, there could be a big bad recession coming. There could be a big bad bear market coming. Certainly we think at some point there will. Between now and the rest of your life, we think there will be. So having our strategy in place we think is very important, gives me peace of mind knowing that you’re having the protection that that affords. And so we hope that you feel that way too.
So once again, thank you for allowing us the privilege of being your guide, to be your financial advisor, your retirement planner. It is something we do not take for granted, we are ever grateful, we are eternally grateful. And every day we wake up, the first thing on our mind is to see what we can do to help you to achieve all the goals that you have.
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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