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Saving the Day Through the Backdoor
Written by Steve | Published: |
In the hilarious movie “Mrs. Doubtfire” from the 90’s there is a seen where Robin Williams is dressed up in his Mrs. Doubtfire suit and trying to make a nice dinner.
Not knowing what he was doing, he burnt the food and ended up catching himself on fire.
Still wanting to make a good impression he ordered take-out from an upscale restaurant, snuck it in the backdoor and placed it on nice china as if he cooked it for the family.
Here are a couple poor quality snippets from that scene. Ha ha.
Many of my clients and prospective clients have asked what is going on in the market.
Since March 2023 we have seen an approx. 17% increase in the S&P 500.
What caused the growth?
Did companies get that much more efficient? Produce more? Sell items at a higher price?
One theory is that this is once again tied to the Fed.
If you look at this chart when the Fed used a “backdoor” to inject liquidity into the market by creating facilities for banks.
Look at the timeline when the spike in credit facilities went up…
That’s weird, March of 2023…
Wait isn’t that when the market started going up?
What a strange coincidence.
While I want my clients to capture this growth. Is this growth really authentic or sustainable?
This is where our indexing strategies come into play.
We grab the growth on the way up and ratchet up the accounts and then we are ready when the bottom falls out of the market because of the no loss provisions we set up.
When there are so many smoke and mirror type plays like this, how confident are you that your hard earned money for retirement is secure?
Let us know if we can help bring you more clarity and certainty through this.