The Only Thing The Market Cares About

article imageIt’s becoming clearer by the day. Increased volatility, shocking world events and record earnings may create good headlines but the single most important thing to investors is low interest rates.

With all the talk of low oil prices you would think the world was coming to an end. No, it’s not. It’s actually great for all of us except for a few oil companies and a few investment banks who have too many high-yield bonds of those oil companies. The world consumes about 92 million barrels of oil a day or 34 billion barrels a year. At the $107.50 high a few months ago, that much oil cost $3.6 trillion. At today’s $53.60 price you could buy it for $1.8 trillion. Buy one, get one free….nice. $1.8 trillion has been taken out of the producers’ pockets and been added to the consumers’ pockets!  

As you can see, it’s a tremendous tax cut for every American who will be spending that money elsewhere. Money spent on oil is burned, one-time. Money spent by consumers has a multiplier effect. Spend a buck at Target, and the company has to stock shelves and hire workers, who then have more money to spend, and so on.

Naturally any movement of money this size will cause some disruptions such as the risk of a collapse of the Russian economy. The Ruble has now fallen a staggering 70% in six months, and there is panic buying of everything going on in Moscow.  

However, this decline in oil prices is extremely deflationary because the use of energy is so widespread that it is in the cost of everything. This is good deflation and different from the demographic deflation that I discuss in Facing Goliath – How to Triumph in the Dangerous Market Ahead. This will keep the Fed from raising rates for eons, well past when many fear.

Of course, deflation means other areas will slow, like housing, because home prices will level or fall. This is a major portion of the US economy which, for the most part, has been missing in action for most of this recovery.  

However, if you are retired or close to it, the key is to be properly invested with a qualified retirement advisor. This will ensure you are looking at the big picture and getting the returns you “need,” but with the least risk possible, so you don’t get crushed during the next crash or correction. As you well know, you simply cannot replace this money….so you need a plan…for the good times and the bad…

 …… and that’s where we can help. To learn more about The Springer Investment Approach, which is our powerful proprietary Investment Management Strategy designed to manage risk and deliver returns in any market, or to get a free second opinion on your portfolio simply reply to this email or give us a call for a free consultation today. 

 

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Critical Year End Tax Strategies

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Tune in this week and learn critical year-end tax strategies that could save you thousands of dollars….and many sleepless nights as Keith interviews Senior Tax Strategist Chris Mann in a special year-end tax strategy session for investors. That’s Saturday at 1pm right here on News Radio KFBK

Listen to Smart Money with Keith Springer every Saturday at 1 p.m. on News Radio, KFBK.

Listen to last week’s show (December 13 ) ,  “How to Build a Portfolio Better Than Your Advisor ” 

Listen to past podcasts

 
 
 
 
 

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How To Build a Better Portfolio Than Your Advisor

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Tune in to Smart Money with Keith Springer this week as Keith explains why so many portfolios underperforms their benchmarks and unveils the specifics on how to build a rock solid investment and retirement plan that will achieve your goals and help you sleep well at4 night!

Listen to Smart Money with Keith Springer every Saturday at 1 p.m. on News Radio, KFBK.

Listen to last week’s show (December 6 ) ,  “5 Critical Issues You Must Face Before You Retire “ 

Listen to past podcasts

 
 
 
 
 
 

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Critical Market Update – December 04

To learn what’s going on in today’s world with the economy and financial markets, in plain English, and too see where stocks and bonds are headed be sure to watch this brief video update.

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5 Critical Issues You Must Face Before You Retire

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Did you know that there are 5 critical things you need to do to prepare for retirement? …and missing any of these could easily derail your plans!  Tune in this week as Keith unveils these must do’s when planning for retirement.

Listen to Smart Money with Keith Springer every Saturday at 1 p.m. on News Radio, KFBK.

Listen to last week’s show (November 22) ,  “Retirement Mistakes And How To Avoid Them” 

Listen to past podcasts

 

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Retirement Mistakes And How To Avoid Them – November 29

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How can you avoid making 7 of the biggest mistakes in retirement? Tune in to Smart Money with Keith Springer this Saturday at 1pm on KFBK to find out.  Keith will tell you what those mistakes are, according to a recent USA Today article and give you tips and strategies to avoid those mistakes.

Don’t let this be you! Tune in to Smart Money with Keith Springer on Saturday at 1 p.m. on News Radio, KFBK.

Listen to last week’s show (November 22) , “Frank Luntz, co-author of Newt Gengrich’s Contract with America ” 

Listen to past podcasts here.

 
 
 
 
 
 

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Don’t Fear The Inflation Reaper

reaper imageWelcome to the New Industrial Revolution

The world is on pins and needles awaiting the Federal Reserve. I know I know it seems like we’re always awaiting one decision or another from the Fed and this time is no different. This time we’re trying to figure out if Janet Yellen and her boys are going to raise interest rates anytime soon, and if so, when. The odds are on the first quarter of 2015, but with this I disagree.

 There is no doubt that a sudden increase in the Fed Funds Rate, and thus overall interest rates, will spook investors. The evidence is obvious as each time we get any type of inflation scare, the markets plummets. With this I agree. Once rates start rising, the market will likely begin its long overdue correction and bear market, which will be ugly.

 However, I don’t see that any time soon for one simple reason: we are still in a deflationary cycle and rates may not rise for several years!

 We are actually witnessing two types of deflation right now. The first is what Facing Goliath – How to Triumph in the Dangerous Market Ahead is all about. The 90 million Baby-boomers are well past their spending age. People spend the most in their 30’s and 40’s, as family demands take precedence, and then taper off at around 50.

 Of course we don’t just shrivel up and die at that point.  We just don’t use 3 tanks of gas per week taking junior to soccer practice and piano lessons, buying them clothes they don’t wear out, while getting eaten out of house and home. We actually do enjoy 3 things after 50: Nice wine, fancier cars and more exotic travel. Sound familiar?

 Currently we have only 65 million Gen-x’ers behind who can’t possibly keep up with the spending power of the 90 million Baby-boomers. That’s deflationary. Fear not for the long term of America though. The good news is that we have a powerful generation in the wings that will create another roaring 20’s. They are the Echo-boomers, the kids of the Baby-boomers, who are 85 million strong. The bad news is that they do not hit their peak spending years until 2023, which will start to get built into the stock market about 2018 and why the Fed has been so aggressive. We just have to get through the next 4 or 5 years, which will certainly be rocky if you are not invested properly.

 The second deflationary pressure is emerging from a new industrial revolution….actually 5 new industrial revolutions occurring in nation: alternative energy – which can be immediately felt at the gas pump as we’re seeing gas under $3 a gallon which acts like a tax cut in the thousands of dollars for each American Family, biotechnology, health care, technology and transportation.

 We get the benefit of all this at a time of low interest rates and energy costs, which means higher corporate profits. The market seems to understand all this which is why the Fed’s exit quantitative easing in recent months didn’t hurt investors. After the first industrial revolution started during the 1820’s, when we saw the transition to modern manufacturing, we had decades of growth, declining inflation, and a booming stock market. Of course when you’re in the middle of it, you don’t always see it. It took until the 1840’s for people to realize what started in the 1820’s!

Investment Strategy

 Although I believe careful investors will be rewarded in this market, it will definitely be volatile. We’re late in the game for this bull market and the risks are certainly rising. If you are retired or close to it, the key is to be properly invested with a qualified retirement advisor. This will ensure you are looking at the big picture and getting the returns you “need,” but with the least risk possible, so you don’t get crushed during the next crash or correction. As you well know, you simply cannot replace this money….so you need a plan…for the good times and the bad…

 …… and that’s where we can help. To learn more about The Springer Investment Approach, which is our powerful proprietary Investment Management Strategy designed to manage risk and deliver returns in any market, or to get a free second opinion on your portfolio simply reply to this email or give us a call for free consultation today. 

Regards,
Keith Springer

 

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Frank Luntz, co-author of Newt Gingrich’s Contract with America – 11/22


Tune in this week as Keith discusses author Fran Luntz’s opinions on why baby-boomers are failing to save enough for their golden years and what they must do to create a secure retirement!

Don’t let this be you! Tune in to Smart Money with Keith Springer on Saturday at 1 p.m. on News Radio, KFBK.

Listen to last week’s show (November 15) , “6 Football Strategies You Can Use to Help You Retire Rich!” 

Listen to past podcasts here.

 
 
 
 
 

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5th Annual Client Wine Tasting Event

Last week Springer Financial hosted our clients to an exclusive Wine Tasting and Food Pairing event at The Firehouse Restaurant.  Click here to view the pictures from the event.

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Critical Market Video Update – November 14

To learn what’s going on in today’s world with the economy and financial markets, in plain English, and too see where stocks and bonds are headed be sure to watch this brief video update.

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