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.
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.
Stocks notched record highs in August despite the virus continuing to weigh on the economy.
How do you explain the disconnect between the economic impact of the virus and swift recovery in stock prices? It’s all about how the Fed rescued the markets – well, almost all.
In the context of a long-term plan, manic swings in asset prices are much less important than the bigger picture – your personal bigger picture.
The swift bounce of the stock market during the second quarter was one of the quickest “recoveries” since 1987’s Black Monday. Once again, the market has provided an excellent example of the importance of staying invested, provided your asset allocation is correct. So, whether or not we have begun a new bull, bear, or what some call a kangaroo market is yet to be determined, and that is principally a result of three factors: 1. the virus, 2. the Federal Reserve, and 3. the recovery.
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