Market Alert November 13th, 2017: You Better Get It Done!
- Our two goals for our clients are for them to have financial peace of mind and for their money to last as long as they do.
- Our investment philosophy of Buy Hold and Sell is designed to give you unlimited upside with a tolerable downside.
- We continue to stand by our fearless forecast of Dow 25,000 by the middle of next year.
- If there is no tax reform, we see the Dow falling by 10%.
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?
- 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?
We continue to stand by our fearless forecast of Dow 25,000 by the middle of next year.
The one thing that we can trust, when it comes to politicians, is that they want to win elections. Because of this, we believe that we will see the tax reform passed. Without it, the Republicans will have shown themselves to be incapable of governing and will be thrown out of office in the midterm elections. They are keenly aware of this, and the pressure is on to get it passed.
We believe that the new tax law will be of enough consequence that it will springboard the Dow to 25,000.
If there is no tax reform, we see the Dow falling by 10%.
Without tax reform, we believe that the economy will slow and perhaps go into recession which would not be well received by the market. Also, lack of tax reform will likely result in large political change. As we all know, the market does not like change either. The combination of these would result in a correction that could be 10% or more.
We do not see this scenario playing out due to the self-preservatory instincts of politicians that we alluded to above.
We believe that the risk that we have today is different than anything we have had in history. The hundreds of trillions of dollars of global debt put a significant strain on government’s ability to do anything about the next recession. In fact, we see all of this debt exacerbating the effects of any economic slowdown. The worst recessions that we have had around the world have all been the results of governments taking on too much debt.
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!
As you can see in the chart below, 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.
Source S&P 500
Clients who followed our lead were out of the Stock market during the great market crash of 2008.
- 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 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!
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.
Look at the chart below:
- Here's To The Unemployed!
- Increase Your Cost Of Living Guilt Free!
- Widow Benefit Questions Answered
- Buy Hold Myth: Don't Be The Fool Who Sells @ The Bottom
- Estate Tip: Dying Without A Plan Is Bad
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!