Transcript: Hello, I’m Ken Moraif, and this video is entitled, “When Bad is Good”. So what I’m talking about is, in the last week, as you may have noticed, the stock market, the S&P 500 index was up. And why was it up? Well, it was up on three data points. One was that China’s economy seems to be improving, because the Chinese government is stimulating it currently. Well, that’s market speak for they’re borrowing more money, and we believe that’s a bad thing, because we believe the Chinese have already borrowed enough, and the next market crisis, as we’ve outlined in previous messages to you, we believe that’s going to be caused by the global debt that we have, and this is just making it a bigger mountain, as we perceive it.

Now also we saw mortgage applications up 10 percent year-on-year, and that’s a positive sign, because consumers don’t buy big things like houses if they don’t have confidence, wages and those kinds of things, so it is a good thing. However, at the same time, it’s continuing the narrative of increasing debt, and that is our concern there.

The third data point, of course, is the Federal Reserve, and they’re under great pressure from the president, but also from the bond market to lower rates. And the Federal Reserve basically said they’re going to leave rates as they are, and not raise them, and that was perceived by the markets as good news, because the markets like cheap money, but at the same time it’s bad news. Why? Because the reason we believe the Fed did not raise interest rates is because the economy isn’t growing fast enough to be able to absorb higher interest rates, so really it’s bad news, but the market perceived it as good. So bad is good.

So what does this mean to you? Well basically, it means that we are investing. We believe that we’re bullish right now, so therefore, we believe that if you are not invested you should be going back in gradually, as we are. But at the same time, it is always very important to have a strategy to protect yourself from the downside, and that’s why we believe that you should have a strategy of buy and hold, for sure. But also one of protection, okay? Meaning that while the market’s going up, you want to participate as much as possible, but when it goes down, you want to have, unfortunately, there’s no way not to have any losses, but to have tolerable losses. Ones that don’t cause you to have to un-retire, or not to be able to retire when you wanted to.

And so because of those things, we are currently bullish, but we have our buy hold and protect strategy. Now, if you are over 50, retired or retiring soon, we would love to meet with you. We’d love to go over your financial plan with you, and see if you’re on track to retire when you want to, or if you’re already retired, that you are taking Social Security when you should, and all those kind of things.

So I encourage you to meet with one of our retirement planners, or to go to one of our seminars, and we really look forward to seeing you there. So thank you for watching this video, and I hope it finds you in good spirits and great health.

Thank you and talk to you soon.