Mar 18, 2017|
Common Sense Retirement Planning
Automatically Generated Transcript (may not be 100% accurate)
Well good morning welcome to a common sense retirement planning and Tony it was my best friend and partner Philip Allen. Am for the next hour we're going to regale you. And when you are gay older the first time we're gonna read you read Gail regale you with all sorts of in trusting information. You probably are not hearing anywhere else because we are your alternative to the mainstream financial press we. We believe that the financial press is every bit his biases the political side of the equation. And so we want to do to be armed with knowledge because as you well known knowledge is power. And of course we are retirement players back we are the upstage original return planners and so everything we do that's pretty much what we are. Designing here is who is it these plans they can get people through what we think he's going to be tumultuous. Period in history. And not run out of income and live a life they wanna live and be comfortable so that's our goal. Now having said that we would remind you as well have felt and I and all of our team over to a common sense which are planning securities license and their fourth. Do what we do through capital investment group member of finreg insipid. And because of this we don't want you to go out and do some things because you heard us say something on the radio. We're designed to be here on the show to inform you certainly in even entertain you and but not to give you specific advice which is why we invite you to come and and sit down with us for free and talk about your situation what you trying to accomplish and so forth in the end based on. A new situation we will try to crash something suitable for your purposes to get you through retirement. And to do what ever it is you do in life. If you want to have a successful fulfilling life and more importantly after her life. In you better Mason on the Altima source of wisdom and inspiration which is the Bible. And that is why we do we do with that sort of foundation and why we start the program every week was something from the Bible to snow more quotes from has a kind. No more quotes from. It was mean as someone asked me. This morning did you did know that his account was not in the mind if that was what was funny about it. Filmed for the vitamin is that would. Is it went by pretty fast and it was like two weeks ago because I had given and you associate who can't be here today and we'll miss her Rebecca king cage she's. On assignment at Michelin. But. We she was I told her to read the verse and so I just scribbled out Versa has a cast 319. Says that. Money's not the most important thing in life but being forced not a party either not told until she read bad for the first. And and she didn't realize that there really wasn't in my able so I guess that was Meena made. When you deal with money Tony. The thing that you have to understand in order to be happy is trusting god is that this manner. But you being happy in knowing how to handle money out of olympians 411. It says I'm not saying this because I'm in need for have learned to be content whatever the circumstances. I know what it is to be an aid and I know what it is to have planning. I have learned the secret of being content and meaning in every situation whether or welfare or hungry whether living and playing here and won't I can do all things through him. Who gives me strength and my god will meet all your needs according to his riches of his glory in Christ Jesus. They're so funny because I just quoted that we are having lunch here today. I've been head of and it was right to be in one hand and that is so you so much the truth that. We live in this materialistic culture and and we've been just programmed to think that our life. Is going to be enhanced by the next car we buyer of the next but you know how sure boom for whatever. And the only lasting satisfaction ever is going to be spiritual because as Don Henley cinnamon and what a great lyricist. They don't put no. Luggage racks on hearses and here's a bit Dix sort of ties in with the physically yes he's 510. Whoever loves money never has and whoever loves wealth is never satisfied with their income. This too is meaningless. He please as written lest we forget by Solomon who had all that stuff and found it wanting after he went and acted the fool several times and with pressure. Start to show was one of the funnier headlights look up on an awhile. It's funny. If you like dark humor as in this. It's from zero hedge the US government now has less cash than Google. Had. Ed this is true. So then what they're talking about his debt in the Bible there's another good quote good. The borrower is slave to Linda and there is so much debt that's been created in this world so to really understand. To really understand the global debt bubble you've got to kind of go further back in time to see historically what has happened in situations so go back. Two years 1517. Win the very first government bond was created in Amsterdam. Social little trivia for you. So governments and been borrowing money for thousands of years but. They figured out a way to finance their country by using bonds. Well so debt levels kept rising and rising and rising. Everybody kept buying bonds thinking that the Dutch government would never default and everyone was brainwashed because the mere suggestion. That the alleged government would default was just. Blasphemous. Well in 1914 the impossible actually happened in the Dutch government did default. And of course that is just one example because history is full of events that people thought were impossible. That they happened. And when you look back on these events. He seems so obvious don't they mean. I can look back nine you can do from the but the tech stock crash and I remember having conversations before it happened with people saying hey. This is reminiscent of the two little panic which is part of what was gone on here in the Dutch. We south Sea Island Co. and swampland in railroads and so many other bubbles and happens nobody was listening to that car and boy this all out. Same thing with this the credit collapse in 07 LA we were on this radio station. Warning people months before it happened here's what's come and be careful to do nobody wanted to listen and now we have we now. Now of course everybody could see that well. Here's why that matters. The Dutch were spending 68%. Of their tax revenue just to service this debt. And that is where we now arrive at our current situation in the United States because it's no different we have our own expert to peddling this. Ridiculous and dangerous fantasy that they owned no problem here and you may recall. That the major debt ceiling crisis in 2011 the federal government almost shut down. The and it happened again Tony thirteen and then Tony fifteen in the congress. Thank you John Boehner. And pres Obama agreed to temporarily. Suspend the debt ceiling which at that time was eighteen point one trillion. And that suspension ended this week. At which point it is sailing out twenty point one trillion walkie again. And that is just one problem because you see US government is already about to breached the new debt limit. And the national then in the land of the free now stands at right twenty trillion dollars. So we've printed four point four trillion we've Obama and his friends and managed to double the dead in a year's time. Did they ask yourself. Could this possibly in battling a what do you think for all of its. You know the story like you said the king has no clothes. Right now easier a lot of the economists from some of the major universities and world and understand these things it is taking the government. Ten dollars of printed money to produce one dollar of GDP right now and is taking more and more of this borrowed money. Two for produced the GDP and that's what's holding the market that is all this printed money. And now why are they so interest in and trump. Doing two things one is their interest in him lowering taxes. Well there one and a lower taxes because they lower taxes. You know they can invest more whatever but if you lower taxes that means. If first there's less money so what he had to do that spraining my any then the other thing their very interest in doing is a trillion dollar stimulus. So that's another tree and and spin Inman is long as they were doing quantitative easing the market always stayed up and there was no volatility. Well eight years into this bull market where at the very highs and somehow. People think that is just gonna stay up there for ever. I was listened to an air force general and he was caught in front of congress and he was making a joke and he said that the air force has a excellent track record they said they had never sent a plane they didn't come magna and a half out half half. And that's how quickly as good as you know that's a question what and so when you when when we see. The market being propped up about these artificial means they and it's all susceptible. To a lot of it's a fragile market it's not based on fundamentals. It's based on trump Fauria you know optimism is based on printed money. You know it's not based on Jeanne you won earnings you know prize earnings ratio that kind of and that makes it susceptible to all kinds of economic problems. And one thing that worries me is. Geopolitical problems. If if North Korea would drop a missile. You know on mainland Japan or god for me in Hawaii or anyplace else. You know this week this market is not the kind of market there's just gonna you know the Dow is not gonna go 123 points that day. And you have to be careful with your life savings. If you go into retirement. And have a big loss in the early years of retirement. Emanate in the back your mindset over the next five years we could have a bad. Couple years in the market that's a possibility. Well if you're retiring in there you can completely destroy your retirement especially when you're taking withdrawals. And where retirement income plan or what we're. Help people we as is ways to develop an inflation protected income that they can you now live and that's so important in retirement. One of the articles that I am reading here Tony is very interest staying. Is his recent research on the psychology is spending reveals a new perspective in the psychology of retirement income satisfaction. Studies comparing the levels of satisfaction Mon retirees with different levels of guaranteed retirement income pound. Those with higher levels of guarantees were more satisfied when those with less left birdie. You know he's got more guaranteed income but here's what's surprising what is rather surprising however was a revelation that a retirees income satisfaction. Did not heavily in your relationship with the amount of wealthier she had to save for retirement. And he goes on and he say what does that mean and it is finally good and worse something that I had realized just working with clients. The Doctor Who did this doctor faint highlighted that an important distinction exists between wealth and income. People have trouble standing their assets. But not spending their encounter. Once we start viewing money is wealth. As a stock of money. And not necessarily as a float the and we seem to get less happiness out of spinning it as we do for money that's automatically turned into a cash a lot of I gave an example this time I just recently. Built a home. And the only other than that the bank loan so much my alma home but the end. They were you know he could get extra stuff and her or upgrade and things like this I had no problem if I was and you did not taking some of that cash flow are made that month and putting it into that house. But the minute I had to get into savings. To put in that house it was like pulling teeth I felt like I was going backwards. You say so that's what happens in your retirement see people take a total return approach retirement the average in met so you go and retire with a stack of money and you can't spend mania they. You eat. What he was enough at this type that you and I were talking about this actually the other day. And this is it real interesting thing is filled Phillip and let you flesh this product a little more because it was your your kind of your thought of originally thought it was so good. Essentially. Kind of as our culture. We invest we've been taught as investors that when you retire. You've got to preserve that principle so what most people think it's okay well this'll this'll be easy. Because my investment advisor and everything are they tell me what the market is average 7%. OK fine I got a million dollars so I'll take 4%. Now add 3% a year but only ever have to get into my principal because it's make it 7%. Right. And we'd been told Ed Emmett cash theirs and and there's actually a name for the 4% rule. Well. The problem with that is get when you actually begin to take income. The theoretical part goes away in reality sets in what is that well here's an example. It's 2007. You have a million dollars. You think to yourself. Well this is going to be easy I'm gonna retire I'm gonna take 4% this year 40000 dollars no problem because I'm gonna make salmon. In my advisor down there and if the big Wall Street firm told me that I should be able to 84% withdrawal rate and add 3% a year for inflation cousin Marcus averaged 10%. Fact has been doing better than Nat last couple years. So you do it. You take your 4%. But lo and behold the market hits the wall. And over the next two years the S&P loses 57%. So let's just say your portfolio which is a diversified portfolio only loses forty. He took 4% the first year mixture you take for you at three for inflation. That's eleven right. So between the 40% loss in your portfolio in the 11% income YouTube you now have gone through it. The FD one better than half of brief saying you have. Only in your portfolio. Now home when it's time to take the vacation. Now when you want to buy a little present for the grand kids. Now when something unavoidable like a procedure the doctors hate that word procedure to all of it Sally my Dorsey who were knife but anyway. We have medical expenses something unexpected the roof leaks what ever and you have to do it Phillips said you've got to dig into savings. On my gosh. I'm only I was a much money now if there are some serious pain and worry constant worry cob constant worry right because you're thinking about the future. And you worried about running out of money and so what do most people do at that point well you know. Actually the best thing that you would have done at that point is to not do any thing just to hang in there in the market came back and you've probably been okay to a point. But what did most people do they don't get proactive when they've got a million dollars they get proactive when they've got 500000 what did they do got out. Right at the wrong time you know and so when you've got a situation where your account is is is that Panama it is a minimal nightmare. But when you have guaranteed income adjusted for inflation that you and your wife came out Leo if it turns it into a you know paste coming in next month you know we can enjoy air retirement. And those best differs between someone going into retirement with a investment plan purses or retirement plan if you wanna see how do. Develop a rock solid retirement plan that is a walk in the park rather than a mental nightmare give us a call 18 huh. 180687676. Say a look us up at CS RP dot info. And use says something it deserves and I dove tailing into. So people got out of the market at the bottom which is what usually happens to your average retail investor. Very very few of them get out of the right time which is where. At the top of the market well let me give you a perfect illustration of justice. What they call risk ignorance has reached a 23 year high. Complacency about our US stock market has become so widespread now. That it's almost a certainly did that losses are lying ahead because the ratio of the S&P index price to earnings ratio. To the volatility index so that's that's a measurement. And at what it does it essentially just shows how much investors are willing to pay. For a given level of risk in a market will Bloomberg. Notes. This ratio rose to the highest reading since 1994. So. Short interest in the S&P 500 has crashed to all time lows and Michael Pinto and every name you probably know could you seem all the time on. I am IC NBC and fox business and so forth. He thinks here's what the market could do for the third time in seventeen years. The major add to your averages are continuing to set a record high strike which provides further evidence that Wall Street too becoming more complacent. With this. Dichotomy between. What the equity prices are and what the actual underlying strength of the US economy as which is abysmal. So. When investors' view that the total market cap to the GDP ratio now where it becomes very clear. That economic growth was not at all keeping pace with the booming stock values over the last few years and this is why it. Huge discrepancy. This is mine Massey money printing by defeated is leading to rising asset prices. The same time. Has failed to boost any productivity think about our. Armed GDP Europe our nation's productivity disease languished at about one point 7% the last eight years and they just. Downgraded in the Atlanta fed. Now is forecasting. One point 2% for the first quarter. And even worse than bad is the fact the market cap GDP equation. Which again as I said has been artificially supported by the central banking wanted to be easing in these low interest rates. Well that is all going south so. Here's a we have a very dangerous extremely dangerous situation. And what is happening. The truth is. It's only gonna take. Something like Korea or the Fed hikes or that. Debt ceiling which will be running out of cash by summer because we don't have to two point twenty trillion dollars. If you are one of these retail investors. And you think it's Smart to stay in the market when you sit in in an all time high whenever all the underlying fundamentals are going yet direction. You could be fooling yourself and something that is going to end up being the most devastating. Experience of your life. And this is particularly true if you're near or heading toward retirement age and here's the truth of it he doesn't have happened. Because. We as retirement planners. Craft plans for people that have some very. Specific protective mechanisms built into them. First of all. The plans that we put together for income. You cannot lose money. Period when the market goes down actually had a guy say to media the day he was coming through is easy Hussein. Ever you say that on the radio is actually in a contract somewhere. I figured I should actually is guaranteed you can't lose my number to guarantee also actually Amazon tracks are where. You can have a guaranteed income stream for your entire life and your spouse's entire life. Without giving your principal meaning. Among other things you can leave whatever is left over to your ears not like one of those old annuities. Ray's death benefit and Edwards. Ended this is a key thing because of all the money printing we were talking about and you can participate in gains which means. Then when market. Are going to opt. You get raises in the game count when markets go down you get the same income payment you got the year before you can't go backwards so. That is a genuine retirement plan not. An investment plan that is fraught with risk and danger. We wanted to do brisk in the danger completely out of this equation and we will bring you. We're gonna have to do something about it. I can't come over there and knock on your door those days are long past the heck people are knocking on congress now. And seriously. You should come knock on her door give isn't ringing and 80687. 6768. Go to CS RP Doughty in for one way or another make an appointment again here. As you get older. The thing that people fear more than any thing else is running out of money in retirement and if you run out of money you're not gonna do it at the beginning your retirement you're gonna read knew it when you turn. AD in your eighties in your ninety's and bash is not a pleasant prospect you know there's a lot of things a look forward to if you make it to a hundred you know. There's some upside to that there's very little peer pressure at a hundred. Goes nobody else left but you but this thing you don't wanna be looking for is the fact that. You're going to. Have a situation where you go broke. If you wanna find out how to avoid running out of money in retirement Lucas out bit CS RP dot info. Common sense retirement planning dot com. You could Collison 1806876768. It's 180687676. Say. Will be back after the break here common sense retirement planning. Welcome back to common sense retirement planning this is Phillip island with my good brand. Tony dale. Tony here is. Allowed me to be on the radio with him because back in 2007. When he suggested it ousted no way that the incidents that I wanna be on the radio. And Tony has had such an extensive background in radio and television he soared to me about my hand and make sure I didn't mess. Too bad there's been a few times that I mean you you were financial plot Phil really meant to say was. But I appreciated. It has been a real blessing to us to be on the radio we have met so many wonderful people. Last week I just had a lot of rain we had we had a lot of good Rainer reviews last week in other thing that people. Kind of miss with common sense retirement planning is aware were so happy that the markets. You know he thing. Are you are you not have that the markets have no were very happy that the markets up we had these great. And reviews we've locked in a lot of declines gains. You know. But their clients no food. That is the next twelve months is a disaster. They're just not gonna participate in that because we believe in what's called annual reset investing. And so we've enjoyed this trump Doria. Who would have thunk it you know early then who would thought that. Donald Trump woods be elected president who'd have thought the market went up after that. You know recently Tony. Donald Trump. Spoke to congress and they. They had a debate on all the different speeches he was gonna give turns out they say they gave one of the greatest speeches of president. Has ever given to congress but I'm glad his original speech was he was gonna just have a just a short speech it got up there looked Adam for a few minutes and says how do you like me now. But then they talked him out of debt during that in having a real speech. But. If you know Allen takes sound thinker clients for. Having faith in mask we hope that. And we know we have we've lowered the financial anxiety. That goes into retirement. You see in retirement Danny engine that made all the money is retiring. And so you have to have another engine to produce that income along with your Social Security. And if that is a unreliable engine or an unproven engine. They nearer than your road in retirements going to be a rough one. If you want to find out half to develop. A true retirement plan you look this up it's the SRP. Dot info. Or call us at 180687676. Say. But we want to show you how to develop that plan now we want to remind you that we don't want you doing anything from watching here. On the radio until you come and speak with us so we can look at your specific situation. And craft a plan that is specific to you and your needs. And where everything we do is to capital investment group member Finneran and sip it. And we look forward to seeing you for free common sense retirement reviewed. And see if we can put you on the road to. Peace of mind in retirement. Now if you gonna be careful now's a good time. A little article here says this Federal Reserve is the most clueless Federal Reserve and a long line of incompetent Federal Reserve's. They have followed the exact food stamps of the 2007 a financial crisis play bit. As if the Federal Reserve is trying to destabilize the entire global system on purpose. We are definitely witnessing the euphoric phase of the stock market bubble because investors could be. Couldn't be more blindly bullish and they are right now this is equivalent to the shoeshine story guarding the market psychology right before the 1929. Crash. Clueless exuberance is off the charge right now and financial markets. In fact Tony showed me an article here this is live their team and main reasons we should be cautious about stocks in the stock market and this mass somebody that I really respect it and said David Rosenberg. The first thing. It is the stocks are basically expansive compared with historical average you know your distrust about load. And sales guy you know right now the stock market prices are off the chart and then. Something else that did a lot of people average investors don't think about it is is margin this is in 19291 of the things that there was. So awful about the crash in 1929 as so many people had bought on margin mean they borrowed money to invest so right now. US margin didn't surged at 827%. Annual rate. Since just before the election that's 513. Billion dollars floating around there. So maybe there's not so much money on the side the Disco borrow it included in the market. Our remember. Who Groucho Marx. He said that he he he didn't believe in the market he held out as long as he committed. In about five days before the 1929 crash he could ever bit of his money. Into the market. And and that's a true story he said got to put more redhead in. And out so you know that's a trouble about playing chicken with this mark. If command and very true true story true example. Sir I easy commute ten. That guy with the apple only said the kind of figured I'm gravity and all of his laws of motion. Back during the south Sea Island Co. in the London Stock Exchange in the seventeen hundreds. So would the market and in this was a bond bubble by the way. Going up and up and up and up and all of his friends his private gentlemen's club we're talking about all were making all this money what he'd. He got now on the market several years earlier. And he he kept down on take my own winnings and walk away. But he couldn't stand it too we would need to call his money in jump back in right before the market crashed. That's easy you Tim for crying now and you think of all people he would have known that things could come down well we know they come down. Yes the slugger I would just like lists that. One of their other signs of this market being at the top is retail fund flows. And we quote Dave rose recent private clients have thrown in the towel and plowed nearly eighty million into mutual funds in the FT since the November election Rosenberg says. A classic sign of a market top. Is wind down money chases marquee games. Stanley that's what that's how it always ends dumb money meaning mom and pop average investors right now are Smart minds getting out here's another one. Narrowing leadership in other words in the in the recent trading days he says we've seen. More new 52 week lows. Then new highs as the longest streak since November the force so what technical sign of a topping market is what that is. Investors are complacent. The S&P 500 has gone 57 days without so much is a 1% intraday swing something we've not seen at least 35 years. The prefer BO come before the storm. Investor polls indicate strong optimism and that's usually a sign that everyone is fully invested in stocks. We came to get idea and of course lest we forget thank you Danielle on this we defend. His men its twin objectives inflation. And employment and the Fed Funds rate is consistent with that. It would be 3% not 75 basis points point 75 which currently is so the market is adjusting to the idea. That the Central Bank is going to go three serious of interest rate hikes over the year maybe as many as three rule. And this interest rates hikes are going to come to roost in the bond market and is not always going to be priced the end. I believe me is just gonna take the least little thing. Inflation rural worse. All one needs to see the latest blow off in the commodity. Complex which is now on policy is to notice how late cycle we are remember what role did for example. In 2008. Inflation is rearing its ugly aids. And then you've got. All of these lofty forecasts that the economist I have to tell you used to be meteorologist. An economist give meteorologist a good name. Because they have missed for the last eight years time and time again well. Once again they have these high expectations of stronger growth when in fact the actual data indicates sluggishness is persisting. And that is extremely Taylor also the latest re as I mentioned earlier the Atlanta fed. Has ratcheted down the earlier forecast of up to two plus percent to a mere one point two. Over ownership of stocks. The bull market since 2009 means 21 point 1% of household assets are now on stocks only five terms in the past 156. Years and has this year been in this Har Har. This is 1242%. Above the norm. And finally. The credit markets. The debt markets the risk premium on US high yield corporate bonds Perry recently approached the lows for the cycle at this. And a very super tie point so there waiting widening again so let let me. Give you something mean about they did OK so you hear us talk a lot about it. Well. A recent piece by Eric Peters he's this chief investment officer one river asset management. Made an interesting point. Chinese credit relative to their gross domestic product has doubled. Doubled in the last decade. And so as the US so right now China's it 300%. Debt to GDP we're when you add our unfunded liabilities we are 350%. But here's the thing to raid of Chinese credit growth. Is is unsustainable. And it's also impossible to reverse. And so you're seeing a lot of Chinese tycoons splitting getting out of the country in China and just lowered his growth rate again so if they are right. As the World Bank warned this week. If they're right we could easily be headed for a depression. And I just wanna throw this in because when I saw this chart I get this. You can see his picture Phillip is is mind boggling so. If you had her twenty trillion dollars. In dead in this country to our unfunded liabilities. Which is approximately a little over a 10000 trillion dollars as. Medicare Medicaid Social Security. So think first second that's Colin 120 something twelve million dollars I want you to understand. How much it trillion is if you could see these pictures it would really boggle your mind but 11. Trillion dollars one. Is it much one trillion news. If you spent one million dollars a day since Jesus was born you would not spend a trillion by now but roughly 700 billion. Which incidentally is about same amount that banks got during the bailout. Now ask yourself do you think that's going to win well. And the answer is no at some point they're always always is a reckoning if you study history you'll see it time and again. And we believe we're heading toward the top in the next phase recycle that's coming is going to be heading south and a downward spiral. And we do not want you to be part of that. And you don't have to be part of that instantly be good we can let you talk to numerous clients that have been with us didn't they didn't. Participate in that last big crash and a seven and no way we don't want you to participate in the next big crash. To avoid that it's easier than you think. You just go to your computer and you type in CS. RP dot. Info that's our website stands for comments and retire planning. Or you call us if you rather 806876768. Either way. You come and sit down with us we will take some information about what you're trying to do in chief who put together a plan for you won't cost to anything. And if you like it you may do it if you do it you're going to have a completely different world view. The pleas before it hits the fan in the fan is on nine your standing in front of the fan. Cumin seeds. In retirement. What you need. Generally to cover your basic living expenses is an inflation protected income that you came out live. While we trying to do is develop that for use an inflation protected income came out earlier. Well you know. We're so thankful that who would have found it like I say that the market is up over the last twelve months wasn't up that much before the election but then we. We've hit trump Torre here. Well one of the pleasant surprises for client see a lot of their clients are in the income phase already where they're taking lifetime income. And enjoying their retirement. Well lot of towns and you're taking a lifetime income your payment never changes for the rest your life well that's good if you have a payment this guarantee the risk your life. But if inflation starts working all match you may have the same payment ten years from now but it only and may back. Three force of the groceries that it did when he started out or worse than that if we get in this super inflation. And out of time I've had clients this week that have received. 3% cost of living increases some of them 5% cost to linger some of them. 9% cost of living increase in their payment and that's login permanently the rest of their life. And so you know when you begin. With inflation you know there's certain things you have to plan for. And when you're retirement planning first of all is longevity risk the one and the one. Equation you came good in Amani car Lou theory or you don't know for sure or any other kind of retire Roy is how long you're not Malia. But everybody plans to live a long time and people are living a lot longer than they used to. And usually live longer than they think they are so we have to plan for longevity reais but the next thing is inflation I see so many plans they have no move. Inflation is not even a consideration. And so one of the things that comes in retirement planning we do is we build into your plan. Inflation protection. But today the thing that we're trying to. You know ring the emergency bell about is look we you're in. A serious time as far as the stock market being overvalued. Really quick here. From Jon Huntsman who isn't extremely well thought of Wall Street new route. Sit opinion this is the most overvalued stock market on record even worse than 1929. Jon Huntsman say is. From an overvalued S&P 500 this is the most dangerous and overvalued stock market on record worse than 2007 worse than 2000 even worse than 29. Or so warns Wall Street seuss slayer Jon harassment. Presently we observe the broadcast market valuation extreme in history. With the state this median valuations on record in the most re liable capitalization. Weighted measures within a few percent of their 2000 peaks. On top of such warning signs as extreme valuation bullish sentiment. And customer confidence he has market action has deteriorated. In an interest sensitive sector as it. More than 13 of stocks are already below their 200 day moving average is don't be fooled by booming headlining indexes. More New York Stock Exchange stocks hitting new 52 week lows last week the new 52 week high C notes and a net shale. Run. You know Jon Huntsman did you bring emotional of people don't know his name but he he was one of the few people that we accurately predicted the tech stock crash he was talking about 98. And he was talking about what was coming with would turn out to be the credit bubble collapse of seventeen he was spot on both of those he he's worth listening to. So you mentioned inflation. I wanted to share something with you that corroborates your which were talking now. So here's headline toward a sixteen debt binge produces Torre seventy inflation and guess what that means for 28 teams to listen to these headlines. These just to appear in the last week or so around the world. Swiss inflation rises highest monthly rate in five years China February producer inflation fastest in nine years. You're over your import prices highest level in five years. European a commodity board keeps bond buying interest rates unchanged food inflation doubles in a month. As UK shoppers start to feel the pinch so what happened. Debt happened money printing happen in cell. Since there's no way for the growth of global production to masts the biggest just blistering pace of money creation. The result is higher prices and this is something people don't understand people think. Then inflation. Is rising prices no inflation is just bad. More money chasing fewer goods. Which in turn become more expensive. So so what comes after a debt driven spike in inflation well this is what history tells us it is pretty clear. Instability. You tossing and pulled global political upheaval. Such is populism or what's going on with Korea or what's happening in the South China Sea or Iran. And the stuff sweeps the globe and worry. And we could find things trying so quickly. It is not an economy isn't like some form a stat. In the economist in Canon just tweak it to like fusion now. It's is more like quarter of nuclear reactor core actor can do. If it gets too far out of balance it goes into critical mass and there is no stopping in after an ad. And that is I I really think what we are on the threshold of some some massive changes and and so here here you got. What form what what for wrong. What if what if things just keep cranking along in the market keeps going up and he's 25000. Well that we want that we will we will be happy is anybody that's bad because you see. Our clients and and participate in the upward movement in the market. We want cheated to make money and that's that's weird it our plans are designed for that. Here's the other side of the coin that what if we're right would've. Huntsman right what if all these people were sharing with you and welcome it's not just us saying we're we're reading these articles Goldman Sachs and there are various people. If they Iraq I eat and the market does go south. Our plan. We'll shield you from losing any of it. Because our plans have a built in zero stop loss the worst thing that could happen to you if the market goes south. If you didn't make any money that year. But guess what you also didn't lose to mean anything here pretty big deal and if you're taking the guaranteed income stream which are planned to have. It would mean that you'll get the same Amy you've got last year. Jameer raising here. Now. That's pretty enticing way to build a hedge of protection around yourself and we can show you had to do it will craft a plan for you. If you come scenes. And we hope you do a lot of people have a lot of people are sleeping bear because of it. Go to CN SRP. Dot info in the stands for common sense retirement planning a State's original retire planners remember. Or call us at 806876760. Day. One of the things that worries me. The North Korean situation Tony off worries me because I can. You know just imagine that. If China wanted to kick us out of that area and take Taiwan and that kind of thing you probably. On the world stage you'd probably be a better way to do it is led North Korea started. He's a member of the you know that happens a lot of times that. Let North Korea started North Korea start city and we attacked North Korea North Korea attacked South Korea in this kind of thing. I don't think China's going to be fighting on fireside. And you know that kind of thing. I sure would hate. He note is as tragic is that would be. For every you know that would be a major event Libya blah you know the and that's a blacks want understand that. But you know I don't wanna go under retirement in every time. Something bad happens in Madagascar are. For my portfolio to be affected. You know that's not the way it is we need to go under retirement but we live in serious times in an over inflated market. He's able my advisors is I don't worry about it well what he told you to really be worried about it would be would he take all your money out of the market they don't do that they keep you fully invested no matter walked. We're reading people. And the have you ever heard Bill Gross you know when they in this article it says legendary bond investor Bill Gross you know one of the smartest man on the planet. He's he's talking about he's had another credit crisis is probably right around the corner. He says grosses ultimate point is this another layman type situation consume before all the global economy if it doesn't Iranian bloggers consider graphic crede creation. Pocket trillion dollar stimulus. Central bank's attempt to ward off disaster by walking a fine line he stated keeping the cost of credit low enough so it doesn't show bars behind that to keep retirees and other savers to meet their liabilities. But decides central bank's best ever to US highly leveraged financial system. Is like a truckload of nitroglycerin. On a bumpy road with one mistake could set off another credit implosion leaving the Fayette in an undesirable situation. At least he said. When in the 2008 crisis broke out central banks are able to slash interest rates and unfurl a massive bond buying program. To help breathe life back in the credit markets. But today global barring caution main extremely low by historical standards in the post crisis asset purchasing programs adopted by central banks. Are nearing their natural limits. He says so don't be fooled our president Donald Trump's promises of three to 4% economic growth or allow the fact the US stocks. Are trading at all times had to lure you into a false sense of security gross warned his investors. Because the global economy could topple over anytime. And here's the last and a cease say had one of the smartest man on the planet about money so instead of reaching for those sky how returns investors should worry first about getting their money back. Or. And so two to dovetail that this is the title of this article for Nigerians when this all blows out so there's a fellow named Mary Johansson who has from the cola cup looms theory. And usually he and the hero the man in 9080 was one of the guys predicted to detect the progress. So so essentially central bankers throughout the world. Have been trying to avoid what happened to Japan over the last several decades which is stagflation and basically. So despite trillions and trillions of this thin air money printer by the world's central banks over the last eight years. Nothing is improved economically. And you have firmer remedy made this point earlier myself inflation is simply too much money chasing too few goods. I we detect massive. Increase in the money supply. And it isn't evenly distributed so too and here's the point. It is. Attempts by central banks to circumvent the workings of the actual economy by putting the money. There's been going on in Haiti is doomed to fail it always has because you cannot print a prosperity is we go back to the Roman times. The Fed and the rest these central bankers have been doing something else. They've been consciously and pointedly picking winners and losers and it is not in their power to make everyone a winner so listen closely to this. You trump voters. So they have decided to. To throw granny in the savers and pensioners in the small investors under the bus. While the financial leaks in the well connected speculators JPMorgan the large banks and risk. Extremely wealthy in the process well at this point is being transferred from one group of people parties be through Z two party and he. From the many to the few. And you can see this and if you look at the interest income statistics. We want to make sure the you get to hang on to what you have in spite of what these jokers are doing to manipulate the markets. Don't be caught up in these falsehoods from big Wall Street investment firms. We are independent advisors we are the original. The original retirement planners in the upstate. We will show you how to keep your money safe but you have to make the first move incumbency possible cost you nothing. Go to CS RP. Dot info. As Stanford common sense retirement planning if you read or call us you can do that 800. 6876768. How ever you get here get here and do it soon police. Do not get caught in the next cascading down turn that so many of the people who we've quoted today are warning you all about. Unfortunately we have just about run at a time so once again CS RP guiding vote come and see us have a great week in god bless you see you next week.