Hello and welcome to our Market Alert video for today, which is September 20, 2024 I hope this video is finding you healthy, wealthy and wise. We have a lot to talk about, and not the least of which, of course, is the 800 pound gorilla in the room, which is the Federal Reserve, they dropped interest rates by 50 basis points. And as you guys know, 100 basis points is 1% so 50 basis points is half of a percent, which was more than we expected. We said they would only do a quarter of a percent or 25 basis points. And the market reacted very favorably to that which we said the market would not but we’re gonna go over why between now and the end of the year, it may turn out that our Fearless Forecast on that was correct anyway, so we’ll go over that with you here in just a minute. But before we go any further, I want to share with you my grandson, Nathaniel, is now three years old, and his parents, as we also believe, are teaching him to be polite. And you know politeness requires that you say please and thank you, and you know you behave in a polite manner. And he’s learned that very well, because now whenever it’s like you’re supposed to eat your broccoli, it’s like, no thank you. Nathaniel, eat your broccoli? No, thank you. So he’s figured out. And by the way, it’s not thank you with a T, it’s thank you with an F, it’s F, A, N, K, fank No fank you. And he’s so it creates a dilemma for us, because on the one hand he’s being very polite. He’s saying no thank you, but on the other hand, he’s not eating his broccoli. So how do we juxtapose those two? I don’t know. I guess it’s a question for the ages, isn’t it? Anyway, let’s talk about the Federal Reserve. One of the things that we thought would happen was that the Fed would only go 25 basis points, because if they go 50, they’re going big. And if they’re going big, that’s usually a sign of bad news. In other words, things are deteriorating faster than than we expected, and so now we need to lower interest rates and go big on that to counteract the deteriorating economy, this is bad news. Well, the market, on Thursday, the day after they announced, took it very well, because the S&P the stock market went almost up 2% but we believe that over the next couple of months, heading into the end of this year, three months, that inflation is going to go back up again. And this move by the Federal Reserve was overdone, and we think that what’s going to happen is that the market will digest all of this and then say, Wait a second, this isn’t that great. There something bad is happening here. The employment numbers are gaining momentum on a bad in a bad way, and the Fed is now having to overreact. In fact, we think they panicked and they had to go big, and inflation is going to start going back up again we view in the next two or three months, and the market is going to not like any of that. And so we believe that. And if you didn’t watch our video three weeks ago, where I had Jordan Roach on with me. He’s the director of our investment Oversight Committee, and we talked about how, or in the last 10 election cycles, presidential election cycles, eight of them, we had a correction, so we’re still anticipating one this year, meaning a drop in the market, as you know, a significant drop in the market that recovers. Just so you know, they all recovered, so it ended rather quickly. So nothing to panic about, but to give you advance warning, but this also, we think, is going to exacerbate it, because inflation goes up, the Fed lowered interest rates. Maybe they’ve overdone it. Maybe things are worse than we think. Investors may decide to take profits and head for the hills. So it’s going to be interesting next three months as we head into the last quarter of the year, but one thing I want to assure you of is that we are going to mind the store for you. Your job is to be SCWPerS and to go out there and enjoy your second childhood without parental supervision. Let us worry about all this boring financial stuff for you, that’s our job, so don’t worry about it. We’ll take care of it. We have our Invest and Protect Strategy in case things get really bad. We don’t anticipate that they will. We think it’ll get choppy in the stock market, the bond side of the equation, however, we think is going to love all this. You know, there’s an old thing about the bond market being the bond ghouls. Well, the reason why they’re bond ghouls is because they like bad news. Because when bad news comes, what does the Fed do? Lowers interest rates. When they lower interest rates, what happens to bond prices? They go up. Bonds love bad news, so lower interest rates maybe is bad news here, and time will tell. So you heard it here first, inflation is going to start going back up again, and the Fed is going to be called out for being terrible at their job and we could get a correction to go with that. So I hope I’m not worrying you. Let us do that for you, but in the meantime, I hope, as I said, that this video has found you healthy, wealthy and wise. Please share it with all of your friends and your family and business associates. We want to help as many people as we possibly can, 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 RPOA Advisors, Inc. (d/b/a Retirement Planners of America ) (“Retirement Planners of America”, “RPOA”). ©Copyright 2023