Volatility Doesn’t Change Your Retirement, But This Would (Radio Interview)

January 6, 2020

On the Trey Ware Show, Karl Eggerss discussed the recent volatility in the stock market. Karl explained it’s been very mild up to this point and it’s not surprising.  But, that won’t change your retirement.  Karl gives the real threat to your retirement.

Trey Ware:                         Meanwhile, it is Monday morning and that means my friend Karl Eggerss from Creatingricherlives.com, creatingricherlives.com is here. And Karl, when you and I talked on Friday morning about this, we were talking about how the stock market go off a little bit, but probably not going to be all that much, and it went off a little bit, but then it recovered. So, stock market took this in stride too, pretty much.

Karl Eggerss:                      Yeah, and look, when we have any type of geopolitical escalation, whether it’s North Korea, which we saw last year and the year before, whether it’s this, you’re going to see the stock market bounce around a little bit. You’re going to see gold and oil jump, which they’ve been doing. Oil touched $70 a barrel on the Brent Crude this morning, which you and I talked about that Friday and you joked about filling up your tank. Gas prices are going to go up a little bit on this.

Trey Ware:                         Sure.

Karl Eggerss:                      But, for people, to change their allocation because there’s some bumps in the road, you don’t get a new car simply because you went over a speed bump, and that’s kind of what this is. And this coincides nicely with the beginning of a new year, and this is where people kind of look at their portfolios and make some adjustments. So, it’s a good “reason” to sell stock for Wall street. But again, this is a bump in the road, so it wouldn’t surprise me to see a little more volatility. But again, it coincides with the beginning of the year. So this is really, at the end of the day, no … remember, we were talking about nuclear missiles flying back and forth in North Korea with the crazy guy, and now nobody talks about that. Now we’re talking about something different.

Trey Ware:                         Right.

Karl Eggerss:                      So, geopolitical risks will always be there Trey. You know that. At the end of the day, it’s about interest rates and our economy, and interest rates are low, and our economy is doing well. [crosstalk 00:01:46].

Trey Ware:                         You know what it’s about Karl? And we’ve talked about his many times, it’s about whether or not people are buying stuff, and people are buying more stuff than ever before. People are working more than they ever have, at least in more than 50 years. People are back at work now. People are buying more stuff. The economy looks fantastic. You’ve got all the experts in the economy saying it’s just got these strong foundation underneath the economy now. It would take a nuclear war to do something about this. By the way, the guy who wanted to bring that about over Tel Aviv is now dead. He wanted a nuclear cloud, this Soleimani guy, he wanted a nuclear cloud over Tel Aviv and was planning to nuke Israel and so all these things are being taken in stride right now because the economy in the United States of America is performing extremely well.

Karl Eggerss:                      You want to change to your retirement plan, it’s not going to be the Dow Jones dropping 200. It’s going to be a nuclear attack on this country or another terrorist event like 9/11. That’s what will change your retirement, not us killing somebody to try to prevent that. So again, a little volatility right now, but the stock market is much, much bigger than this and people’s retirement. And like you said, people are buying. This economy, we had how many economists last year and “experts” predicted that in 2019 we would have a recession, definitely going to happen? Didn’t happen.

Trey Ware:                         Didn’t happen.

Karl Eggerss:                      And you and I talked about it. We said, look, slow downs are different than recessions, and we didn’t get a recession. And right now, the Fed has indicated they’re not raising interest rates anytime soon, and the market’s saying great, let’s go buy stocks then. And that’s why you’ve seen a huge run up in stocks in 2019. In 2020, look, is it going to be as good as 2019? Probably not, but are we bracing ourselves for a massive drop in stocks? No.

Trey Ware:                         Well, what happens too during election year, and thank you Karl, what happens too during election year is people play it a little bit safer during an election year because they are unsure about what’s to come. And I can tell you, if they get any indication whatsoever that there’s going to be a Democrat elected in November, then we’re going to see a major pull back. But, there’s no indication that there’s any of these Democrats that could beat President Trump. Karl Eggerss, Creatingricherlives.com. It’s creatingricherlives.com. Thank you Karl.