On February 8 the S&P 500 closed more than 10% below its record high, something that had not happened since February 19, 2016.
It was a quick tumble from the record high set on January 26, and there are plenty of suspects in the tripping. Fears of higher interest rates, higher inflation, automated trading programs, and higher government spending are among them.
Two weeks ago our blog focused on the gifts that Mr. Market has given us over the last year or so. We admired his generosity over last 12 months with the following cautionary statement:
“We also know that Mr. Market will at some point likely take some of his gifts back. We just don’t know when. It could be tomorrow, it could be next month, or it could be in a few years.”
Addition by subtraction is a very difficult concept to implement – especially in tax law. Yet, Congress made just such an attempt in the new tax law for 2018.
The new tax law substantially increases the standard deduction to reduce taxes and left in place an old law that lets you reduce your taxes without a deduction.
If someone gave you an additional $3,200 per year of income what would you do with it?
On January 11 the IRS released their updated withholding tables for 2018. The withholding tables tell employers how much federal income tax to withhold from their employees’ paychecks. Payroll service providers are now busily updating their software to reflect the new 2018 tables and expect that workers will see changes to their paychecks in February.
We hope you had a blessed Christmas and a fantastic finish to 2017.
Over the long weekend I had to run an errand to a large chain home improvement store. What remained of their Christmas decorations were on sale and the large area that had been dedicated to Christmas starting in early September had been downsized significantly.
Rising out of the leftovers from Christmas were the red hearts of Valentine’s Day which must be just around the corner -- at least in retail terms.
On Friday, December 15, the conference committee tasked with resolving differences between the House and Senate versions of the tax reform bill released their highly anticipated conference report.
If you just happen to find the legislative process as fascinating as I do, you can have unfettered access to all 1,097 pages here (and I recommend starting on page 510!).
One of the most frequent questions we are getting from clients right now is regarding the value of the stock market. Are these lofty values justified? When will the value decline? What is the real value?
I am going to go out on a limb here and emphatically state that our country is vastly undervalued right now, just perhaps not in the financial markets.
Jim Rohn: “Discipline is the bridge between goals and accomplishments.”