Market Alert May 14, 2017: To all mothers - We love you!!
- The market was down slightly last week as no news was released to move it.
- Global economic growth seems to be starting to take hold, but it is built on debt.
- We continue to stand by our fearless forecast of Dow 23,000 sometime this year.
- Global debt continues to grow, and it will come home to roost so we must be prepared.
The market was down slightly last week as no news was released to move it.
The economic data was more of the same, and the market had nothing to sink its teeth into and so it didn’t. The news is still bleeding two words a Federal Reserve increase in interest rates in June and the market seems to not care much about that. When the rate columns, if it does, this will be one of the most telegraphed at least worried about rate increases in recent history.
Global economic growth seems to be starting to take hold, but it is built on debt.
As you can see in the chart below the amount of global debt has doubled since 2008. Keep in mind that this amount of debt is the cumulative debt from the beginning of time until today. And we doubled that in a little over eight years. Governments around the world are following our lead by amassing record levels of debt and investors are following suit. We all know that when we borrow money we feel like we have wealth but it is only temporary. Eventually, we have to pay it back, and if we can’t, we have to declare bankruptcy.
We continue to stand by our fearless forecast of Dow 23,000 sometime this year.
While we don’t see any large dislocation coming this year due to optimism on the Trump administration’s pro-business policies, we also believe that individuals and countries cannot continue borrowing and spending indefinitely without coming to an unhappy ending.
We are thankful that we have our sell strategy in place and ready to be used should the trends turn in the wrong direction. We have peace of mind because of the confidence that we have in our strategy to help mitigate against large losses when the next bear market comes.
Because too much debt limits the options available to individuals and governments to deal with crises, we believe the next bear market could have significant social and economic consequences.
I would like to invite you to come to one of our seminars. They are designed for those of you who are retired or retiring soon, and they are free.
At the free retirement seminar we will answer these burning questions:
- How do I protect my retirement from the next market crash?
- How do I avoid the three basic “pitfalls” of retirement distribution planning?
- Am I on track to be able to retire?
- When should I take Social Security? 62? 66? 70?
- Am I diversified properly?
- How much can I afford to spend during my retirement?
- What is the best investment I can use to fight inflation with?
- How do I determine how much risk is appropriate for me?
- Do I take my pension or a lump sum?
- How do I avoid having 85% of my social security being taxed?
- Should I rollover my 401(k)?
- How do I reduce my income taxes in the future?
Source: JP Morgan Asset Management
- Do you know if you have enough money to retire on?
- What are the 5 strategies that you can use to reduce your income taxes?
- How do you plan for your retirement cash flow?
- What should you do to maximize your Social Security benefits?
- Are you properly diversified?
We would love to review your entire financial plan, analyze what you have and see if we can help you. If we can, that's terrific, if not that's fine too. Either way, there is no charge or obligation, and we will part friends!
With the market near all-time highs, this is no time to be complacent and assume that the market only goes up! The best time to plan ahead for the next market crisis is now!
The market can turn around very quickly and very unexpectedly. The 2008 bear market wiped out 12 years of gains in just 17 months. Many of you participated in that bear and the one in Y2K. I am sure that you do not want to do that again.
Clients who followed our lead were out of the Stock market during the great market crash of 2008.
We do not want to see crippling losses happen to anybody. It is why I write this email; it is why our advisory firm exists, it is why I do my radio show and why we have our seminars. I want to help as many people as possible not to become poor and to have peace of mind.
- Complacency @ 30 Year High
- Questions, Comments, Cheers, Or Jeers: The Fearless Forecast
- Why Take Social Security @ 62?
- Creating Your Financial Plan: Learn From Johnny Depp
- Estate Tip: Who Becomes Family CFO If You Die?
There is nothing more important to us than that. It is our singular goal to keep our clients from becoming poor. Preserving the wealth that they have built is job number one for us. I encourage you to join the Money Matters family!
I believe that avoiding large losses is the single most important thing that we should be concerned about as investors.
Perhaps you were given a package by your employer. Perhaps you sold an asset and want to know how to properly invest the proceeds. Perhaps you inherited money and want to keep it safe and grow it if you can. Perhaps you just want a second opinion. These are all reasons for you to take advantage of all of the resources that we at Money Matters have to offer you.
We want to help you to achieve your financial goals.
Thank you for subscribing to this newsletter. I hope it finds you and yours in good health and spirits.
Ken Moraif, CFP®, MBA
P.S. If you have any friends that you would like to introduce to the Money Matters family, please send them our way. Friends do not let friends buy and hold!!
Click on the link above to have us add them to our Market Alert Email list. They will appreciate you for it!