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 United States is reeling, and the world continues to battle the COVID-19 pandemic, but it seems as though the markets do not care. The recovery has been swift, but it would be rare for stock prices to continue up in a straight line. Recoveries are rarely one-sided. As financial markets continue to find their way, discounting the improving situation, we recommend staying grounded in your long-term strategy. You don’t need a crystal ball to weather the current situation.
The coronavirus and Middle East turmoil jolted the markets to start 2020, setting back many Wall Street strategists’ outlooks for the year. While the media is hyper-focused on the spreading coronavirus, we take stock of some the positives in the market and some of the risks. It’s a constant battle to combat the apocalyptic thinking that is embedded in our DNA. That makes coming up with a plan important.
2019 capped off a strong decade in financial markets, as the world continued to recover from the 2008-2009 recession. Advances in technology and the companies who brought us these changes were at the heart of a decade of strong financial gains. One implication is the S&P 500 is now less diversified. We believe it’s important more than ever to diversify beyond large US stocks. The future remains unknowable. It’s more productive to invest in preparation than in prediction.
Investors remain skeptical of this year’s double digit gains in stocks, as typically defensive sectors of the market lead the way. Strong returns to bonds have driven much of the financial market’s gains this year, leading some to wonder if it is all real.
Many wonder if we will see a repeat of last year’s fourth quarter correction in stocks. While that is unlikely, investors in stocks should always be prepared for an unexpected ten percent drop at any moment.
With less than two months left in 2019, now is the time to think about changes in your life ahead of the calendar-year rollover.
Escalating trade tensions triggered a sharp pullback in August, giving up July’s gains. Global stocks were up 16.6% YTD as of July 31, and now show 12.1% gains through August 6. Now is the time to re-evaluate your tolerance for ups and downs in the market. Get a plan, keep it simple, and stay invested. Those who can stick with a long-term plan will continue to be rewarded.
Almost no one predicted the surprisingly strong 2019 year-to-date returns for stocks and bonds. The stock market is currently indifferent about a trade war or recession, while declining long-term bond yields indicate the bond market takes a different view. Most things investors worry about are not really important. What is important are the four “deep risks.”
