Point View WealthPoints

June 3, 2020

The stock market has done the one thing nearly all the pundits said was impossible: making a V-shaped recovery.  The stock market, as measured by the S&P 500, has soared nearly 40% since the apparent bottom, March 23.  The market is now up on a year over year basis and is down only about 6% ...

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As the Coronavirus grips much of the world, global travel and commerce have come to a screeching halt.  The last thing people want to think about is getting on an airplane, checking into a hotel or spending money on the latest fashions.  They are concerned about sourcing food, cleaning supplies, ...

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Covid-19 has us all feeling afraid and helpless.  Between health worries and economic uncertainty, it’s easy to feel as though there is nothing we can control.  However, just as we can shelter in place, social distance, and practice good hygiene, so there are concrete financial steps to take now to ...

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Whatever you want to call it: unprecedented, challenging, historic, uncertain, or much worse, investors have seen nerve wracking volatility this year as a result of the global pandemic Covid 19.  In March the market had its most rapid descent ever into a bear market, as investors panicked and ...

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In the face of Covid-19, markets have experienced volatility not seen since the dreaded 1930s.  Stocks were at all-time highs as recently as mid-February, then plunged anywhere from 25 to 40% or more in response to the pandemic. Investors must make key decisions. Over 1/3 of the country is ...

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Amidst a pandemic, it’s hard to think of tax relief as much of a positive.  However, Congress and the IRS have given taxpayers a little less to worry about.  Like everything else, the situation is in flux. Here are current highlights: Most 2019 non-corporate income tax returns, along with ...

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Use the Coronavirus sell off to do some bargain hunting.   Here's why: There's never been a sell off, for any reason, where the market did not recover and reach new highs. Of course, the length of recovery can be protracted.   Uncertainty now is no reason to flee stocks. The market outlook is ...

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Your IRAs will be an important source of your retirement income and perhaps your legacy. How you handle them throughout your working life can help enhance and secure that retirement income. First Things First: Establish an IRA. Most retirement saving occurs in the workplace, and you should ...

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Many of us may remember the opening scene of Indiana Jones and the Raiders of the Lost Ark when Dr. Jones, played by Harrison Ford, makes it through a maze of booby traps in search for the Golden Idol.  He dodges arrows and rocks and ultimately makes it to his glimmering prize. Carefully, he ...

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As investors approach the end of the year, they are marveling at how everything did well, not just stocks, but bonds of all shapes and sizes and commodities as well, with even crude oil up 29%.  All 11 S&P sectors are poised to end the year positively, led by tech, up 41%. Only 64 companies are ...

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The media are warning of a looming recession, to the point where some worry they are creating a self-fulfilling prophecy.  Yes, there will be another economic downturn someday. Yes, we are all going to die someday. Making drastic changes right now as though either event will occur tomorrow can lead ...

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Today’s low interest rates have investors searching for yield.  As the S&P 500’s dividend rate of 2% hovers around the 10-year Treasury bond’s yield of 1.7%, bonds no longer seem the easy answer.  Bond investments may let you sleep at night, but their return, especially when factoring in ...

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Demand for energy is only expected to increase over time, and although energy stocks have long provided a stable return for investors, the sector is changing and will likely be going through transition for the foreseeable future.  Due to concerns about meeting steadily increasing demand, as well as ...

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Winston Churchill once declared, “There is no such thing as a good tax.”  While the argument for or against Churchill’s thoughts on taxes is best left for another article, we would argue that there is such thing as a good tax strategy.  In fact, there are several tax strategies a prudent investor ...

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As people approach retirement, they may look forward to travel, to volunteering, perhaps to a second home.  Most are not focused on keeping taxable income within one set of parameters, modified adjusted gross income within another, and state income within a third.  Perhaps they should be. A little ...

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Recession concerns abound. Manufacturing worldwide is slumping, with the latest read in the US pointing to outright contraction.   The much-feared yield inversion has occurred, linked historically with a follow-on recession. Haven assets, including sovereign debt, precious metals, and ...

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Initial public offerings of stock (IPOs) offer a bundle of appealing attributes, as they often represent a new company in a hot industry with unlimited growth potential.  As institutional investors usually get first dibs at these offerings, retail and individual investors often feel left out, ...

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Target Date Funds have been increasing in popularity and are offered broadly within 401k and 529 plans.  The money flow into these funds has continued to soar, primarily due to the ease and simplicity they offer investors who may be unsure of where to direct funds within these plans. Many 401k ...

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The SECURE (Setting Every Community Up for Retirement Enhancement) Act of 2019 handily passed the House of Representatives in May and has been languishing in the Senate since.  Speculation abounds that it will attach to the budget deal Congress and the President are poised to work out. The SECURE ...

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2018 was dismal, with the S&P 500 index down 6.2%.  It was the first losing year in the stock market since 2008’s financial meltdown.  Indeed, the bottom fell out of the stock market in 2018’s Fourth Quarter; large stocks lost 13.5%, but small companies declined an eye-popping 20%. Investors ...

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Trade wars continue. The US recently ratcheted up the tax rate on $200bil of Chinese imports from 10% to 25%. The Chinese have retaliated by increasing the tax rate on $60bil of US goods from 5-10% up to 20-25%. Those industries already feeling the impact can expect more pressure on their ...

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“Nonqualified Deferred Compensation Plan” is a mouthful—NDC Plan is easier.  In simple English, it’s a supplemental retirement plan for corporate executives and other high earners.  If you become eligible for one of these plans, congratulations. Be sure you understand what it means for your ...

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With the rise in stock market volatility this year, value investing is back in the spotlight.   In value-style investing, fundamentals take the lead. A stock is considered a good value when its price seems to be too low relative to the strength of the company’s financial performance.  Often the ...

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2018 has come and gone. From an investor’s perspective: good riddance! The crystal ball for 2019 is murky. Many issues are open-ended: Will Tariffs continue and drag down the global economy? Is the US economy headed for recession? What will be the Fed’s response to monetary policy? Earnings growth ...

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Single year market forecasts are hazardous.  In 2017, nearly every asset class delivered a positive return. As we conclude 2018 nearly every asset class is down, including domestic stocks, real estate, alternatives, bonds, and overseas investments. A reversion to the mean in 2019 is likely. The ...

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Thinking about retirement?  Take a look at the various sources of income available to you, and work on developing a good estimate of your expenses. Use these strategies to make your savings last over the long haul.   Income sources.  Having diversified sources of income in retirement is a plus.

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Want to terrify yourself? Read statistics about aging and long term care. Today, about 6.3 million Americans need long term care.  That number is expected to increase to 15 million by 2050. Scarier still is that few individuals have the resources to pay for the necessary care. That’s why 83 percent ...

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Many investors have personal values and priorities they wish to extend to their investment portfolios, be it global warming, income inequality or corporate employment practices. Environmental, Social and Governance Investing (ESG) has skyrocketed in popularity among investors.  ESG investing ...

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They say buy low, sell high. This month’s global sell off, with all major indices having reached correction territory, and several in brutal bear markets, is yielding mouthwatering bargains. Let’s be clear, momentum traders, algo players, nervous nellies, and a whole host of non-fundamental ...

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After many years of forecasting higher interest rates, 2018 appears to be the year these forecasts prove right.  The ten-year Treasury started this year at 2.4%; recently it hit a seven-year high, spiking to 3.26%. Despite the view that US Government bonds are super safe, the fact is bond ...

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