Smart Money with Keith Springer Saturdays at 1PM and Sundays at 6AM on NewsRadio KFBK 93.1 FM and 1530 AM

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. 


Springer Financial Advisors ("Advisor") is a federally registered investment adviser located in Sacramento, California. Advisor and its representatives are in compliance with the current filing requirements imposed upon registered investment advisers by the Securities and Exchange Commission and the State of California. Advisor's web site and its emails of general distribution are limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of Advisor's web site on the Internet or dissemination of informational emails should not be construed by any consumer and/or prospective client as Advisor's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. A copy of Advisor's current written disclosure statement discussing Advisor's business operations, services, and fees is available from Advisor upon written request. You may also obtain publicly available information about Advisor through the SEC website as follows: Advisor does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Advisor's web site or incorporated in an email, and takes no responsibility therefore. All such information is believed to be reliable and authoritative but does not constitute sufficient information to be the sole basis for sound investment decisions and all users thereof should be guided accordingly. Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by Advisor) made reference to directly or indirectly by Advisor in its web site, email, or indirectly via a link to an unaffiliated third party web site, will be profitable or equal the corresponding indicated performance level(s). Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client or prospective client's investment portfolio. Certain portions of Advisor's web site (i.e. articles, commentaries, etc.) may contain a discussion of, and/or provide access to, Advisor's (and those of other investment and non-investment professionals) positions and/or recommendations as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from Advisor, or from any other investment professional. The information is of a general nature and should not be applied indiscriminately to particular situations wherein it may not be completely applicable. Advisor is neither an attorney nor an accountant, and no portion of the content should be interpreted as legal, accounting or tax advice.