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Cut Capital Gains Liability by Investing in Opportunity Zones image

What does it take to spur private capital to invest in areas that are struggling to create jobs and develop their communities? Would a tax break on capital gains realized by investors be enough to inspire them to reinvest those gains in low-income urban and rural communities across the country? Congress has decided to give that theory a try by creating something called Opportunity Zones: designated areas of the country that are crying out for long-term investments but which, until now, have offered little incentive for such speculation. The idea, established by Congress in the Tax Cut and Jobs Act of 2017 (TCJA), offers a mechanism that enables investors with capital gains tax liabilities across the country to receive favorable ...

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January 2019 Market Update & Outlook image

Monthly Recap January 2019 came and went with much less volatility and fervor than we saw in December. Most equity markets saw meaningfully positive gains as the markets recovered from a treacherous Q4. To recap, here are just some of the noteworthy events and stories from January: The Fed left interest rates unchanged and signaled some potential policy adjustments (more on that below) Theresa May’s Brexit vote failed spectacularly, however, she did survive her confidence vote. Lots of unanswered questions regarding their path forward and the Bank of England seems worried about the effects on the overall economy. Home sales sank 6.4% in December to their weakest level since 2015, ending a difficult year at a new low and offering ...

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December 2018 Market Update & Outlook image

Monthly Recap December saw a return to volatility following November’s relative calm with the S&P 500 dropping just over 9%.  December’s fast and furious drop has lead a lot of forecasters to believe 2019 is going to be a very rocky and volatile year.  To recap, here are just some of the noteworthy events and stories from December: Huawei CFO was arrested in Canada at the behest of American authorities The US became a net exporter of oil for the first time in 75 years The US government shut down as a fight between the president and democrats over wall funding heated up Cohen gets prison and said his duty was to hide Trump’s dirty deeds The FED raised it’s ...

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November 2018 Update image

Monthly Recap November was a relatively calm month following October’s volatility and saw the S&P 500 claw back a 2% gain for the month.  In fact, most asset classes saw positive returns for the month of November with hopes that the market would be smooth sailing through year end.  To recap, here are just some of the noteworthy events and stories from November: Wildfires devastate California as millions are evacuated from their homes and the death count rose to around 85.  PG&E, California’s utility company, is under scrutiny about whether its equipment caused one of the fires.  As a result, PG&E’s stock and bonds fell dramatically in fears that it could go under. Jeff Sessions resigns as US AG at the request ...

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October 2018 Update image

Monthly Recap October brought with it a return to volatility in the markets with the S&P dropping 10% at one point before closing the month down approximately 7%.  To recap, here are just some of the noteworthy events and stories from October: US treasury bonds slid to a multi-year high as the 10 year bond hit 3.20%, a level not seen since 2011 President Trump’s first annual budget deficit climbs to a 6 year high.  As a result, the U.S. Treasury Department estimates it will issue more than $1 trillion in debt this year. The U.S. economy expanded at a 3.5 percent pace in the third quarter.  Consumer spending, which accounts for about 70 percent of the economy, unexpectedly accelerated to a 4 ...

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September 2018 Update image

Monthly Recap It was a very busy month, although it was overshadowed with sexual assault claims and hearing on Judge Kavanaugh and whether or not he should serve a lifetime appointment on the Supreme Court. To recap, here are just some of the noteworthy events and stories from September: The Federal reserve raised interest rates to between 2 – 2.25% and is expected to raise them again when they meet in December. Although, Fed President Bullard thinks the Fed shouldn’t raise rates right now. Meanwhile, Turkey rises interest rates to 24% in a dramatic bid to control rocketing inflation and prevent a currency crisis. Goodbye, NAFTA. Hello, ‘USMCA.’ The deal has a new name, new rules for cars and trucks, and labor ...

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August 2018 Update image

Monthly Recap August was an extraordinary busy month with Senator John McCain’s passing, Musk tweeting about taking Tesla private with the help of Saudi Arabia, Turkey and Argentina continuing to head towards crisis and many more.  To recap things effectively, below are some of the noteworthy events and stories from August:   Senator John McCain, an American hero, dies at the age of 81 after a battle with brain cancer. Arena Franklin passes away…and without a will Cohen and Manafort are both found guilty casting additional concerns at Trump and the White House US and Mexico reach a trade deal: The deal includes several provisions to alter a pact Mr. Trump has long branded “a disaster” for what he considers incentives ...

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July 2018 Update image

Monthly Recap It was another busy month indeed with GDP reported, continued trade wars/rhetoric and the first $1 Trillion company in history.  To recap, below are bullet points of the important and noteworthy events that occurred in July. Apple became the first company in history to reach a $1 Trillion valuation. US Q2 GDP is reported with 4.1% growth, the highest quarterly growth since 2014.  Michael Feroli, the chief U.S. economist at JPMorgan Chase & Co said “It’ll be hard to repeat this performance on a sustained basis.” The US-China trade war rhetoric keeps going back and forth.  Trump announced a plan to increase tariffs on an additional $200B of Chinese goods (although Trump also hinted at putting tariffs on $500B worth ...

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June 2018 Update image

Monthly Recap It was another busy month with continued talks of trade wars.  To recap, below are bullet points of the important and noteworthy events that occurred in June. The trade war with China picked up with the US and China going back and forth on tariffs.  This uncertainty was a contributing factor for the market selloff that happened during the last 2 weeks of the month.  Read more here Central bank officials voted unanimously to raise their benchmark federal-funds rate by a quarter-percentage point to a range between 1.75% and 2%. It is their second rate rise this year, and they penciled in a total of four increases for 2018, up from a projection of three at their March ...

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May 2018 Update image

Monthly Commentary May was an incredibly busy month and another signal that volatility (geopolitical and market driven) is here to stay.  Turkey, Argentina and Brazil appear to be heading for a currency crisis as their currencies tumbled this month relative to the dollar and other major currencies.  Italian bond yields surged as Italian PM Conte gives up bid for government.  This caused the 10 year Italian bond yield to spike from 1.90% to 3% in a matter of days, whipsawing bond investors.  The trade war against China was halted while Trump started another trade war with Europe.  On top of all this, the North Korean summit was (temporarily) canceled.  All of these factors caused the 10 year treasury bond to ...

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