"Don't Fight the Fed" “Don’t fight the Fed” is an old Wall Street saying. That is the only explanation I have for market performance in 2020. There is a great deal of bad news and yet the S&P 500 reached an intraday record this week and may very well close at a new high in the midst of a recession. Of course, a recession is only officially determined after it has ended so we are...
The hits keep coming. In the news it seems there is never a dull moment yet at the same time it feels as though our lives and time are frozen. Life during the time of Covid-19 is different from any time in our lives before. The expectation of change is constantly in the air. This too shall end although we don’t know when and we don’t know how it will alter our routines like shopping...
So far this week we are facing the expiration of many provisions of the CARES act, most importantly, the extra weekly unemployment benefit of $600 as well as additional funding for testing, schools, municipalities and states, hospitals and more. A Democratic Congress is negotiating with a Republican Senate and the White House. Not even close to an agreement on next steps with regard to the expiration of CARES benefits Friday July 31. The cost of...
Events are unfolding rapidly, assumed Democratic Presidential candidate Joe Biden is presenting policy statements. Of particular interest to us is his proposed tax reform policies. Here is a link with some non-partisan analysis in regard to the proposals impact on the many issues of tax policy. Basically, Biden proposes to raise taxes on wealthier Americans with an income level of $400,000 and to increase corporate taxes from current 21% to 28%. Also, an increase in...
In a world where events seem out of your control it is important to find decisions in your life that you can control. Examples would be wearing a mask, social distancing, washing your hands and being prudent in your behavior. Maintaining your discipline in regard to your behavior is a daily challenge. The initial shelter in place order at the beginning of the pandemic was easier than it is now. It was new and we...
Important Reminder! Once again, this is an important reminder! The deadline for filing taxes and contributing to your Individual Retirement Account (IRA) is fast approaching. The July 15, 2020 deadline has been confirmed. No further extensions unless you elect for a tax filing extension to defer your filing to October 15. To echo last week’s newsletter, the extension to file does not extend your due date to pay your taxes due. Official tax due date...
Important deadline approaching The deadline for filing taxes and contributing to your individual retirement account (IRAs, Roth IRAs, and SEP IRAs) is upon us. The July 15, 2020 deadline has been confirmed. No further extensions, unless you request to extend your tax filing until October 15. Important to note that while you can postpone your tax filing date, the official tax payment deadline is still July 15th. Unpaid taxes beyond July 15 are subject to...
We were hoping for a slow week, so much for that! An upcoming date to pay attention to is the current tax filing deadline of July 15th, 2020. Individuals have until the tax deadline to: File their 2019 taxes (or file an extension to file in October) Make contributions to their individual IRA- either Roth or Traditional. Please reach out if you have questions or need guidance on the new tax deadline or making a...
I am learning to wait until later in the week to write the newsletter because whatever I write on Monday’s draft might be out of date by the time you receive it. Head spinning is the best way to describe how I feel. It can be exhausting. Yet there is an element of fascination in how the human spirit responds to stress. So much happening all at once. So many opportunities to get better in...
By comparison to previous weeks, not as much has happened this week and it’s a moment of respite for many, a chance to catch our breaths. Last Friday the new jobs report announced 2.6 million new jobs were created and the stock market rallied again. Protests for racial justice continue with hundreds of thousands of mostly young demonstrators making their feelings known all across the country. Protests were orderly and emotional during the day and...
We thought it couldn’t get worse, here we are with a trifecta of huge challenges. Pandemic, unemployment nearing record highs and now the murder of George Floyd sparking the largest civil rights movement of all time with demonstrations in all 50 states and protests igniting internationally. It makes me think back to my early career as a stock broker and the beginnings of my financial planning business. On tough days when it was hard to...
More activity and gradual reopening are happening. Take a look at the stock market over the past couple of weeks. If your barometer on the economy is the stock market, then the market’s near rebound indicates life will return to normal any day now. Cognitive dissonance rises to the top of my thinking. Stock market is good, however main street/unemployment is not good. The bond market indicates a view similar to main street’s concern about...
