Plan Confidence Newsletter MAY 2020
I started out last month's newsletter proclaiming what a rough month March was for the stock markets. And I'll start this month's newsletter by stating what a great month April was!
Obviously, we don't invest in a vacuum and we need to keep a perspective on our "risk controls" as we seek returns. So, it doesn't matter if you are using our Strategic or Semi-tactical models, we are advising you on how to control the risk in your investments.
We have no idea what the future markets will bring as several states are relaxing their "lock down" orders and they are slowly re-opening. We don't know if people will go back to "normal," or if there will be large amounts of people staying home as we are unsure what the future holds.
Rest assured, nobody knows. We all can guess and go on social media and express our opinions, but no one really knows. There are no computer models to simulate human behavior (we are irrational beings after all).
Just know, the advice that we program into our software is disciplined and research oriented. It is not based off of my opinions or beliefs. After all, I am a mere human as well, known to be irrational at times too.
Also, please let your friends and co-workers know that they too can have confidence in their plans for only $5.00 per month!
Stay safe, healthy and confident my friends. Make it a great May!
Sincerely,
Kevin T Clark, RF
Co-Founder & CEO
APRIL S&P 500 - STOCK MARKET:
The S&P 500 looks like the exact inverse from last month's newsletter. The stock market has rebounded a lot since losing in much of February and most of March. I think this has taken many people by surprise as all of the states were still on "stay at home" or "shelter in place" orders.
What we don't know yet, is how the economy is going to respond after it starts to re-open. We should know more about this next month, as several states are beginning to re-open. Now let me remind you that the stock market and the economy are two different things. Right now the stock market is soaring as the economy continues to deteriorate.
Unemployment numbers continue to rise (we are now getting above "Great Depression" levels). The government is creating "new dollars" and trying to get it into the hands of consumers and businesses as fast as it can (this will create massive inflation in a few years). And many well known corporations are starting to file for bankruptcy.
What we don't know, and I think the markets are hoping, is if the deteriorating economy will be very short lived. Will the economy begin to "normalize" as the states start to re-open? Only time will tell...
But the stock market is usually "forward looking" by about six months. So, there is hope! The markets are "predicting" a "normal" economy in the next six months. But markets can be very irrational, because the machines have not fully taken over. So, they too can be very unpredictable due to our irrational human behavior!
MONTHLY QUIZ: Mother's Day!
This Sunday is Mother's Day!
In case you didn't know, you still have a few days to get a gift. (If your mom is still working, the gift of Plan Confidence ($5 per month) is priceless!
CLICK HERE to take the quiz.
It only takes a few minutes and it will let you know the correct answers immediately.
And I took it and got 7 out of 12 correct!
So, I challenge you to take the quiz and see if you score higher. And be sure to email me or post on our Facebook page your score. Especially if you beat my score!
I'll give you Kudos on our Facebook Page and I'd love to hear about it!
Plan Confidence - April 2020
If you are using our ongoing, personalized advice service for your 401k / 403b / TSP plan, then you would have received an email and/or "push" notification (if you are using our app) on Wednesday, April 2nd.
Regardless if you are using our "Strategic" or "Semi-Tactical" models, you were instructed to move your "Future Contributions" to:
S&P 500
High Yield Bond
The exact funds to use, and percentages, will be shown when you log into your account through any browser or the app. And if your plan does not have a recommended category, then we will let you know the closest investment option available to you in your plan.
Do not hesitate to let us know if you have any questions about this service.
And please be sure to let your friends and family know that for $5 per month (less than a Venti Latte per month), they too can receive ongoing, personalized advice for their retirement plans!
To learn more about our Model Allocations please CLICK HERE.
JOKE OF THE MONTH:
Q: Why is a computer so smart?
A: It listens to its Motherboard!
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