The Coronavirus Market Correction – Two Ways to Place Volatility in Context – An Update
Since our March 9th note placing current market volatility in context, the market, as measured by the S&P 500, has continued to see major swings in both directions. S&P 500 daily losses of 4.9%, 9.5%, 12%, 5.2% and 4.3% have occurred as well as daily gains of 4.9%, 9.3%, 6%, 9.4% and 6.3%. Despite the […]
What is Wrong with Selling Now and Getting Back in When Things are Calmer: Nothing! But Not for the Reason You Think.
Why not sell out and get back in when things are calmer? That is the question many investors are asking as the Coronavirus-provoked market volatility continues. At first glance, it may seem obvious why that is a bad idea. The wisdom of holding on and not selling stocks into a down market is common knowledge. […]
The Coronavirus Market Meltdown Continues – Two Ways to Place the Volatility in Context
This morning global equity markets continued the recent volatility around the Coronavirus’ human and economic impacts. As of this morning, the S&P 500 is trading down roughly 5% and since February 20th, 2020, the S&P is down roughly 17%. The uncertainly around the virus and the volatility of equity markets are reasons for investors to […]
Six Quick Thoughts on the Coronavirus Market Meltdown
As I sit to write this post, the Dow Jones Industrial Average is down just less than 1,000 points. Concerns around the impact of the Coronavirus on both human lives and economic growth is dragging down global equity markets. Investors are understandably concerned about what they should be doing. One strategy they might consider is […]
Four Strategies for Managing the SALT Deduction Cap
For those who live in states with high income tax rates like New York or New Jersey, you may have been impacted by the 2017 Tax Cuts and Jobs Act which limited the State and Local Tax (SALT) deduction to $10,000. Following are four strategies that may help you alleviate the effects of the SALT […]
Long-Term Equity Returns – A Reasonable Expectation
As we begin the new decade, I thought this would be a good time to consider what a reasonable long-term equity return expectation might look like. While not particularly helpful for short-term strategies, setting long-term expectations has several benefits for investors including: Long-term planning – Equity return expectations are a key building block for long-term […]
The SECURE Act – Congress passes significant new retirement plan legislation
In the final session of 2019, Congress passed and the President signed, the SECURE Act (The Setting Every Community Up for Retirement Enhancement Act), a significant piece of legislation that contains several important updates and changes for investors. Among the most significant are the following: The SECURE Act generally ends the “Stretch” IRA. Beginning in […]
Getting to Know the Fifth Set Credentials – The Enrolled Agent (EA)
When an individual or business needs a tax professional, the credential most typically sought out is the certified public accountant (CPA). However, there is another, albeit less well-known designation, that also represents tax practitioner professionals authorized by the US Department of the Treasury: Enrolled Agent (EA). According to the IRS website, “Enrolled agent status is […]
IPOs – High Profiles, Low Returns – Following the Evidence
One of the benefits derived from the evidence-based investment approach is the systematic avoidance of underperforming investment strategies. Media narratives and marketing drive many of these strategies, that while they might help increase advertising sales and commissions, do little to help investors develop successful investment portfolios. One such currently popular strategy is investing in newly […]
Five Last Minute Year-End Tax Tips for 2019
With the holiday season approaching and the end of 2019 right around the corner, we would like to highlight five last minute tax tips. You have until the end of the year to tackle these tasks which can help maximize your tax benefits and improve your overall financial plan: Maximize 2019 contribution to your employer-sponsored […]