Since the Omicron variant was cited last Friday by the World Health Organization as a "virus of concern," stock prices for the last three stock-trading days have gyrated.
Population trends of the United States versus other countries rarely make headlines in the financial press, but a population bust has been in the news this week.
Since 1957, a 64-year span of modern history, 21 financial crises are shown here. Charting them against the performance of the Standard & Poor's 500 index, the key benchmark of the strength of the United States, puts current investment conditions in perspective.
Earnings drive stock prices. Lately, however, earnings have been driving stock prices to record-breaking prices and, with the fourth quarter economic growth rate about to more than double, stock prices could be lifted higher still.
Supply chain problems, often cited in the media as the main cause of inflation, are expected to diminish greatly by the end of the year. The high inflation rate on goods is expected to revert to the normal 2% rate experienced for the decade preceding the pandemic by the end of 2022, and prices on some goods may even be rolled back to pre-pandemic levels. For example, lumber prices at Home Depot soared in the Spring of 2021 but reverted to pre-pandemic levels by early Fall.
Is the man on the ladder going up or down? The answer depends on your perspective.
The growth of the economy drives investment returns, and plain and simple, corporate profits—that is, earnings—drive stock prices. Without an understanding of what drives stock prices, investors are often fearful when stock prices plunge or, ironically, when they are breaking record highs. Here’s some help.
There are many reasons why professional advice may be best for managing your financial situation. Here's the No. 7 reason.
Modern Portfolio Theory, or MPT, is a framework for investing. It provides part of the intellectual underpinning of our firm's approach to managing investments. So, it is important to explain it periodically.
The Standard & Poor's stock index dropped 2% yesterday and U.S. Secretary of the Treasury Janet Yellen, testifying before the Senate Banking Committee, warned of "catastrophic" consequences if Congress failed to come to an agreement on the debt ceiling by October 18. Meanwhile, a showdown is looming in Congress over raising the United States government's debt limit and how much to spend to improve the nation's infrastructure, as well as the size of the budget for the approaching fiscal year ending September 30, 2022.
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A Financial Planning Accident Waiting To Happen
Published Tuesday, June 29, 2021 at: 9:10 PM EDT
Tax hikes are an accident waiting to happen.
The likelihood of higher tax rates suddenly makes converting traditional IRA investments into Roth IRAs more important.
Higher taxes are widely anticipated, and our job as financial professionals is to alert you to what’s ahead. Before the tax wreck of 2021, please brace yourself by planning now.
The IRS is hiring more tax auditors and President Biden has proposed tax hikes on high income and high net-worth individuals. Avoid the worst effects of the shift in federal tax policy by planning. Keep your eyes wide open and be prepared for what’s about to hit.
If your retirement assets are in IRA accounts, in the event of a stock market selloff, the drop could present a tax-saving opportunity. The likelihood of higher tax rates may make converting traditional IRA investments into Roth IRAs suddenly more important.
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