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 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.
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.
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.
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.
February felt like a return to normalcy as investors continue to digest information on the new COVID relief bill and Johnson & Johnson’s new single shot vaccine.
Inflation jitters hit the market amidst a rapid rally in Treasury yields, pushing many investors to reevaluate their positions across asset classes.
January had no shortage of headlines; however, audiences were captivated by a merry band of retail traders strapped with low-cost trading apps and Reddit accounts attempting to “short squeeze” hedge funds. Although entertaining, it can end badly for those late to the party. Markets continue to digest information regarding monetary policy, fiscal stimulus, and the COVID vaccination rollout. Good planning and appropriate asset allocation continue to serve investors well over the long-term.
Post U.S. Election, stocks notched record one-month gains. The election news was quickly drowned out by encouraging vaccine developments, reminding us that dealing with the health and economic crises will continue to trump politics (pun intended).
The markets continue to reward those who commit to a good long-term strategy, even when it seems the world, at times, is falling apart. Global stocks fell over 31% at the low point in March. Now, global stocks are up over 12% YTD, including dividends. The incredible volatility this year reminds us that successful investing doesn’t depend on timing the markets but on finding a strategy that you can stick with.
As the year comes to an end, it’s a good idea to review year-end planning. We discuss waived rules on IRA distributions, Roth conversions, basic gifting, and estate planning.
Post U.S. Election, stocks notched record one-month gains. The election news was quickly drowned out by encouraging vaccine developments, reminding us that dealing with the health and economic crises will continue to trump politics (pun intended).
The markets continue to reward those who commit to a good long-term strategy, even when it seems the world, at times, is falling apart. Global stocks fell over 31% at the low point in March. Now, global stocks are up over 12% YTD, including dividends. The incredible volatility this year reminds us that successful investing doesn’t depend on timing the markets but on finding a strategy that you can stick with.
As the year comes to an end, it’s a good idea to review year-end planning. We discuss waived rules on IRA distributions, Roth conversions, basic gifting, and estate planning.
