The tax-code has favorable rules for those with realized losses in taxable accounts by allowing them to offset realized capital gains and ordinary income.
Any losses realized in excess of capital gains can reduce one’s ordinary income by up to $3,000 annually and can be applied to future gains and ordinary income.
When the market falls, investors receive an opportunity to generate tax savings and potentially rebalance their account at a discount.
The first six months of 2022 have been painful for investors, but there are some silver linings to the market’s selloff.
It is important to maintain perspective when it comes to the financial markets; even with the selloff this year, most investors have benefited from past gains.
Investment success is determined by how one reacts to turmoil and market selloffs; maintaining composure gives the best odds of getting through a downturn.
Investors are grappling with two contrasting worries that inflation is too high, and the economy will weaken.
The challenge for central bankers is to cool inflation without upsetting the economy, which has been difficult to achieve in the past.
When the market hits a rough patch, it’s important to stick to your plan. It may also be worth looking for opportunities for tax-loss harvesting or a Roth conversion.
Investor sentiment is sitting at lows last seen in the global financial crisis as inflation, geopolitics, and China’s Covid-19 policy have consumed markets. In turbulent times like now, our emotions can cloud our rationality. Time in the market is more productive than timing the market. Investing success comes from focusing on what one can control, particularly asset allocation and investment strategy.
There were few places to hide in the first quarter. Stocks and bonds both declined while commodities spiked. The recent experience in bonds has been one of the worst on record. But does that mean we should give up on bonds? We offer our thoughts on navigating the bond market rout.
The tax-code has favorable rules for those with realized losses in taxable accounts by allowing them to offset realized capital gains and ordinary income.
Any losses realized in excess of capital gains can reduce one’s ordinary income by up to $3,000 annually and can be applied to future gains and ordinary income.
When the market falls, investors receive an opportunity to generate tax savings and potentially rebalance their account at a discount.
The first six months of 2022 have been painful for investors, but there are some silver linings to the market’s selloff.
It is important to maintain perspective when it comes to the financial markets; even with the selloff this year, most investors have benefited from past gains.
Investment success is determined by how one reacts to turmoil and market selloffs; maintaining composure gives the best odds of getting through a downturn.
Investors are grappling with two contrasting worries that inflation is too high, and the economy will weaken.
The challenge for central bankers is to cool inflation without upsetting the economy, which has been difficult to achieve in the past.
When the market hits a rough patch, it’s important to stick to your plan. It may also be worth looking for opportunities for tax-loss harvesting or a Roth conversion.
Investor sentiment is sitting at lows last seen in the global financial crisis as inflation, geopolitics, and China’s Covid-19 policy have consumed markets. In turbulent times like now, our emotions can cloud our rationality. Time in the market is more productive than timing the market. Investing success comes from focusing on what one can control, particularly asset allocation and investment strategy.
January was a bruising month for global stocks, particularly U.S. indices, with markets focused on uncertainty around monetary policy. Given recent steady gains, volatility feels unnerving, but it is important to remember that volatility is part of a normal, healthy financial market. Higher interest rates are not a bad thing for stocks; stocks performed well in past periods of higher rates. In times like these, it is important to remain anchored in a long-term investment strategy.
2022 brings several key changes that may affect financial planning. Changes to key contribution limits, income phaseouts, and required distributions for IRAs, 401(k)s, and health savings accounts (HSA) could impact you. Inflation was a hot topic in 2021. As a result, social security benefits also saw a noticeable bump this year.
2021 was an odd year. The stock market looked through all the worries, returning double-digits for the third straight year and finishing at a “cheaper” valuation than at the beginning. A rise in bond yields and a lower valuation on stocks implies better-expected returns, but anything can happen in a year’s time. There is usually at least one 10% correction in stocks every year. That may cause indigestion, but it shouldn’t upset your financial plans.
A media blitz reporting a breakout of the new Omicron variant triggered a selloff in stocks and risky assets in November. The bond market isn’t concerned with long-run high inflation. This is in contrast to the latest inflation reports in the media. The bout of inflation seen today is largely a result of a jump in the price of goods relative to services. We believe it’s unlikely to continue.
The rise in inflation has led to an eye-catching rise in the interest rate offered by Series I Savings Bonds, a.k.a. I Bonds. The 7.12% rate on the current I Bond issue is hefty, but it’s important to consider several important details. I Bonds may be most appropriate for those looking for an alternative to cash or certificates of deposit (CDs).
Global stocks had their best month since November of 2020, rebounding from a September pullback. The U.S. Treasury yield curve flattened on heightened concerns of sooner-than-expected interest rate increases. The financial markets continue to eye global central bank moves, focusing on the tapering of asset purchases and plans for interest rate hikes. Central banks will continue to dominate the near-term narrative but maintaining an appropriate long-term investment strategy will continue to serve investors well.
As much as we would like to imagine we are capable of rationality, studies of investor behavior indicate we are far from logical and, at times, are capable of incredible irrationality.
When investing our own money our judgment is often clouded, leading us astray and resulting in the implementation of portfolios with sub-optimal risk-return profiles.
Global stocks dipped in September, ending a run of steady gains. Bond yields rose sharply in September, driven by real yields. While inflation and the debt ceiling are getting a lot of attention, the move in the markets is more about a wind down of monetary support than the debt ceiling or inflation. Financial markets often behave in unexpected ways. What’s important is the unexpected market moves do not derail your long-term strategy.
Global stocks continued their steady march upward, adding to already strong year-to-date returns and shrugging off multiple headwinds. The smooth ascent may appear out of touch with reality, but investors, accompanied by a strong economic backdrop and central bank support, are learning to live with the virus. So far, the focus of investors has been vaccines over variants; however, the impact on the global recovery due to the delta variant and any possible future variant is uncertain. With the global market increasingly concentrated in select U.S. companies, we believe international markets are more important than ever.
A hot economy and strong earnings growth resulted in solid year to date gains for stocks. The recovery from the pandemic is shaping up to be one of the fastest on record. Whether all this good news is exciting or concerning to you, stay grounded in sound investment principals when emotions run high.
