Tax Reform: Approaching the Finish Line!
|
|
- Anthony Atkins
- 6 years ago
- Views:
Transcription
1 Tax Reform: Approaching the Finish Line! bbtperspectives.com /tax-reform-approaching-the-finish-line/ November 2017 This is too difficult for a mathematician. It takes a philosopher. Albert Einstein on filing tax returns The House and Senate have delivered their respective tax plans with edits occurring in real time. Their paths may differ but their goals of progrowth economic stimulus are aligned. In this edition of Market Monthly we remain hopeful as we focus on potential investment implications from eventual tax reform. Taxpayers must wait for final details in the coming weeks as the House and Senate resolve the differences between their respective bills. Motivated by upcoming 2018 midterm elections and driven to extend the economic recovery, we think Congress ultimately crosses the finish line by combining features of both plans. Summary: 1/8
2 Potential Effects on the Economy: The thrust behind tax reform remains economic growth and each of these preliminary bills delivers it in its own way. These bills require folks to view them through two lenses: that of a taxpayer who wants to pay less and that of an investor who wants to earn more. We will focus on the latter. These bills are largely investor friendly. Potential Effects on Equity Markets: The impact and timing of the corporate tax cuts, interest expense deductibility, conceptually eliminating double taxing corporations on paid dividends, a repatriation tax holiday and a territorial tax system will each have winners and losers. Put simply, each of these items is relevant to corporate earnings and stock prices so we remain cautiously optimistic. Potential Effects on Bond Markets: Bond markets remain more sensitive to Fed policy than to tax policy. Limitations on corporate interest expense deductibility and changes to tax-exempt status on select segments of the municipal market highlight changes in the tax bills that bear watching. Setting the stage: We frame the tax reform discussion with some basic facts. The chart below provides factual context and background to illustrate the magnitude of the task at hand for law makers. Those writing the tax laws are quite aware of the story it tells. The left reflects the percent of total individual income tax returns filed and taxes paid. The bottom reflects the adjusted gross income (AGI) ranges that apply to the respective number of returns filed and taxes paid. As an example, filers with under $50,000 in AGI comprised 61.4 percent of all returns filed and 6.4 percent of taxes paid. Fast facts: Of the 150,494,271 tax returns filed for the 2015 tax year: 23.7 percent were filed at the 0-percent tax rate Those with AGI under $100,000 represented 83.2 percent of the returns filed and 21.8 percent of taxes paid (80/20 rule) Those with AGI over $100,000 represented 16.8 percent of the returns filed and 78.2 percent of taxes paid 2/8
3 (80/20 rule) For relevance, estate taxes raised $17.2 billion representing just.56 percent of total IRS revenue for 2015 (Estate tax revenue was the equivalent of the market cap for Best Buy Co. Inc.) Timelines: The House passed their bill on Thursday afternoon, Nov. 16, largely along party lines with a vote of 227 for and 205 against. The Senate Finance Committee also approved their version and the full vote is likely to occur by Nov. 30 th. Next, the House-Senate conference committee could convene as soon as the week of Dec. 4 th to write a final compromise bill. This occurs simultaneously with a Dec. 8 th budget deadline to avoid a government shutdown and a Dec. 12 th special election for the Alabama Senate seat, which creates a delicate vote balance in an already fragile Republican majority. An early 2018 passage remains the best case, but getting tax reform done as an early Christmas present is not out of the question. Either way, we think it will succeed. Potential Effects on the Economy: What is progrowth about tax reform? The thrust behind tax reform all along has been to generate economic growth. Those drafting the bill expect a broader base of tax payers willing to spend their tax savings. Corporate filers are expected to allocate their tax savings to growing their businesses and create high-paying jobs. The chart below illustrates expected GDP growth from tax reform and compares it to the 2003 Tax Reform Act (in blue). The House bill (red) is front-end loaded with immediate tax savings and economic growth with forecasted results similar to The Senate bill phases in taxes and is expected to have less short-term economic growth. Incremental economic growth of 1 percent could help the U.S. out of its prolonged slow-growth slump, but we acknowledge there other factors at play here such as tighter Fed policy with an increasingly hawkish board. Balance 3/8
4 is key. Timing is Everything: The House and Senate have proposed cutting top corporate tax rates from 35 percent to 20 percent but vary in the timing of their implementation. The House wants to cut taxes immediately in 2018 whereas the Senate wants to phase in tax cuts by beginning in Phase-in tax cuts risks could delay the growth to the economy as the previous chart illustrated. This could be a market negative. Possible solutions we ve seen from research partners include: Cut the tax rate to 23 percent instead of 20 percent but make it immediate Phase in corporate tax cuts incrementally over two-three years The chart below illustrates the results of the 2001 and 2003 tax cuts. In 2001, tax cuts were passed in July but were set to phase in over several years. Economic growth sputtered. The tax cuts in 2003 recognized this flaw and corrected it by accelerating the 2001 tax cuts to make them immediate rather than phased in. Two things happened. 1. Economic growth responded quickly and stayed sustainably strong. 2. Actual economic growth exceeded expected economic. The final bill should make tax cuts as front end loaded as possible to allow taxpayers to benefit from tax savings as soon as possible. Final Point on the Economy: The U.S. and the rest of the world remain in a robust economic recovery despite what happens with tax reform. But tax reform would certainly help. Potential Effects on Equity Markets: 4/8
5 Economic growth drives earnings growth and earnings growth drives stock prices. Stocks have generated doubledigit returns so far in U.S. stocks have seen a two-part market recovery. The first part of the recovery was driven by a PE expansion during an earnings recession. It is now driven by solid earnings growth for the first time in several years. That begs the questions: What s next? Tax reform is not a cure-all, but it is expected to add 8 percent to S&P 500 earnings in Below are some themes in the tax bills that identify potential leading and lagging sectors among the 11 that comprise the S&P 500. Some sectors that are winners from one tax law may be losers from another tax law. For purposes of this discussion, we are isolating themes solely based on impact from proposed tax reform knowing there are many other factors at play in making an investment decision. Lower U.S. Corporate Tax Rates: The primary impact to earnings from tax reform would come from tax savings associated with lower corporate tax rates. Companies with higher relative tax rates benefit the most. Winners: Consumer Discretionary, Telecom, Industrials Losers: Utilities, Real Estate, Materials Repatriation of Foreign Profits: U.S. multinational companies who do significant business abroad have kept almost $3 trillion of these profits overseas to avoid high U.S. taxes. A Repatriation Tax Holiday will allow those companies to bring cash back to the U.S. at reduced rates. Combined with lower tax rates, firms will be incented to bring the money home and keep the money home at reduced rates. Winners: Technology, Health Care, Consumer Staples Losers: Telecom, Utilities, Real Estate Deductibility of Interest Expense: House and Senate bills both propose limiting the ability of firms to deduct the interest expense on their corporate debt. Firms whose capital structure is heavily debt financed or financed at high interest rates will be disadvantaged. Winners: Utilities, REITs (excluded from the bill) Losers: Energy, Consumer Discretionary As a side note, Senator Orrin Hatch of the Senate Finance Committee proposes the elimination of the doubletaxation of dividends by allowing companies to deduct dividend payments. Many of these themes have not yet been priced into the market. U.S. stocks are in seeing-is-believing mode. Unless and until a tax bill is finalized U.S. stocks are not yet pricing in tax reform in a meaningful way. Stay tuned as this could change. 5/8
6 The orange bars in the chart above reflect YTD returns for various equity asset classes thorugh Oct. 31 st. Once again, international equities have led the way. U.S. stock valuations continue to carry premium valuations. YTD returns have impressed and successful passage of tax reform would be a big plus. While we remain broadly optimistic we are also realistic. The Fed s unwinding of nine years of extraordinary monetary policy can be expected to have a surprise or two along the way. We continue to think policy missteps between the Fed and Washington remain one of the largest market risks. Tax reform failure remains the largest near term risk. Volatility remains at an all-time low and we are in the second longest stretch in history without a 5-percent drawdown. For now the economy and earnings growth support our view of cautious optimism, but we expect increasing risks for renewed volatility. Execution is everything. Potential Effects on Bond Markets: Bond markets remain more sensitive to Fed policy than tax policy. Two of the more impactful areas of the tax bill that affect bonds are: Limitations on Corporate Interest Deductibility: The limitations on interest-expense deductibility negatively impacts firms who depend heavily on debt in their corporate structures and those who have higher interest obligations because of lower credit quality. Utilities have been excluded from this section of the bill. Roughly 40 percent of high-yield bond issuers (and their investment bankers) could be impacted by this. Investment-grade issuers are largely unaffected. Changes for Municipal Bonds: The repeal of the AMT would be welcome for many muni bond buyers although some folks previously subject to the AMT could be shifted into new higher tax brackets. The good news is municipal bonds retain their tax-exempt status for traditional public purpose bonds. Both bills target removing the tax-exempt status for advanced refund bonds issued by municipalities to retire older debt at more favorable terms. Since this represents up to 20 percent of all new municipal bond issuance, this actually could lend price support to municipals due to a shrinking supply of available bonds. A final point for municipal bonds is the interaction with the proposed repeal of the State and Local Tax (SALT) deduction for individual taxpayers. Due to the loss of the SALT deduction some investors, especially from high tax states like California and New York, will have even greater demand for in-state municipal bonds whose interest is 6/8
7 exempt from state income tax. Below, we ve seen a performance shift in recent months in the global bond segment where returns have turned negative. As the U.S. dollar has recently gained strength, international bond returns for U.S. investors have suffered. Municipal bonds and high yield bonds have continued their strong performance. Closing Thoughts: Tax reform tends to lead most recent conversations we are having with our clients. That explains our focus on tax reform for this month s issue. We have a global economy and invest in global markets with many moving parts beyond just taxes. Global economies continue to perform above trend. We expect another rate hike at the Dec Fed meeting. The controversial special Senate election in Alabama on Dec. 12 could reduce the already fragile Republican majority. If tax reform passes, which we think it will, investable subthemes may present themselves as opportunities. We are in a late cycle economy with a late cycle bull market that has staying power into Downturns should be bought and market timing should be avoided. The 2018 voting Fed is undergoing rapid change and will continue to normalize monetary policy while the economy performs above trend. Midterm elections are around the corner and will motivate policy makers. The finish line to tax reform is getting closer, and we think it will get done. Stay tuned. Sources: Strategas Research Partners, Evercore ISI, FactSet, Goldman Sachs Global Investment Research, Morningstar, This piece is produced by BB&T s Wealth Portfolio Management Team. The information set forth herein was obtained from sources, which we believe reliable, but we do not guarantee its 7/8
8 accuracy. Neither the information nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities. Diversifying investments does not ensure against market loss and asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. Past performance does not guarantee future results. Traditional banking services are provided by Branch Banking and Trust Company, Member FDIC. Only deposit products are FDIC insured. Investment solutions are provided by Branch Banking and Trust Company; BB&T Scott & Stringfellow, a division of BB&T Securities, LLC, member FINRA/SIPC, a wholly owned nonbank subsidiary of BB&T Corporation; and BB&T Investment Services, Inc. BB&T Investment Services, Inc., is a wholly owned registered broker/dealer subsidiary of Branch Banking and Trust Company, Member FINRA/SIPC. Securities and insurance products sold, offered or recommended are: NOT A DEPOSIT NOT FDIC INSURED NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY MAY GO DOWN IN VALUE NOT GUARANTEED BY A BANK Services and products featured herein may include some offered by affiliated companies of BB&T Wealth. The fees for those services and products are in addition to the fees charged by BB&T Wealth. As a result, BB&T Corporation, as a whole, receives more compensation than would otherwise be received if a non-affiliated service or product was used. When we offer any service or product to a client, we use the same process to offer both affiliated and nonaffiliated services and products. When we have authority to select any service or product on behalf of a client, if our process shows affiliated services and products to be competitive with corresponding non-affiliated services and products, then we may select affiliated products and services. BB&T Wealth expresses no opinion on the use of BB&T affiliated services and products when the client selects such services and products in a client-directed account. BB&T and its representatives do not offer tax advice. The information provided should not be considered as tax or legal advice. Please consult with your tax advisor and/or attorney regarding your individual circumstances. By clicking any third party links, you will leave BBTPerspectives.com to visit a third-party website where the privacy and security policies of BB&T do not apply. BB&T is not responsible for the content, products or services that you may find there. 8/8
Rising Yields Begin to Bite
Rising Yields Begin to Bite bbtperspectives.com/rising-yields-begin-bite/ February 5, 2018 February 5, 2018 Volatility returned to global stock markets last week with the S&P 500 declining -3.85 percent
More informationINVESTMENT IMPLICATIONS OF THE NEW TAX LAW: EQUITIES AT A GLANCE
LPL RESEARCH WEEKLY MARKET COMMENTARY January 2 2018 INVESTMENT IMPLICATIONS OF THE NEW TAX LAW: EQUITIES AT A GLANCE John Lynch Chief Investment Strategist, LPL Financial Barry Gilbert, PhD, CFA Asset
More informationBuckle Up, The Ride s Not Over
Buckle Up, The Ride s Not Over bbtperspectives.com/buckle-up-the-rides-not-over/ April, 2018 Stay in your seat come times of trouble. It s only people who jump off the roller coaster who get hurt. Paul
More informationMARKET INVESTMENT IMPLICATIONS OF THE NEW TAX LAW: BONDS AT A GLANCE PERSPECTIVES FIXED INCOME KEY TAKEAWAYS LPL RESEARCH.
LPL RESEARCH B O N D MARKET PERSPECTIVES January 2 2018 INVESTMENT IMPLICATIONS OF THE NEW TAX LAW: BONDS AT A GLANCE John Lynch, Chief Investment Strategist, LPL Financial Barry Gilbert, PhD, Asset Allocation
More informationFourth Quarter Outlook: A Distracted Bull
Fourth Quarter Outlook: A Distracted Bull bbtperspectives.com/fourth-quarter-outlook-a-distracted-bull/ October 10, 2018 October 2018 You can always find a distraction if you re looking for one. Tom Kite,
More informationINVESTMENT IMPLICATIONS OF THE NEW TAX LAW: ECONOMY AT A GLANCE
LPL RESEARCH WEEKLY ECONOMIC COMMENTARY January 2 2018 INVESTMENT IMPLICATIONS OF THE NEW TAX LAW: ECONOMY AT A GLANCE John Lynch Chief Investment Strategist, LPL Financial Barry Gilbert, PhD, CFA Asset
More informationWILL EIGHT BE GREAT FOR THE BULL?
LPL RESEARCH WEEKLY MARKET COMMENTARY March 14 2016 WILL EIGHT BE GREAT FOR THE BULL? Burt White Chief Investment Officer, LPL Financial Jeffrey Buchbinder, CFA Market Strategist, LPL Financial KEY TAKEAWAYS
More informationMIDTERM TAKEAWAYS COMMENTARY THE BEST NEWS FIRST KEY TAKEAWAYS LPL RESEARCH WEEKLY MARKET. November
LPL RESEARCH WEEKLY MARKET COMMENTARY November 12 218 MIDTERM TAKEAWAYS John Lynch Chief Investment Strategist, LPL Financial Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial KEY TAKEAWAYS Getting
More informationThe tax reform of 2017 explained
I nnealta C A P I T A L SPECIALISTS IN ACTIVE MANAGEMENT OF ETF PORTFOLIOS The tax reform of 2017 explained Key takeaways: Recently introduced tax reform covers three main areas: taxes on individuals,
More informationIMPRESSIVE EARNINGS SEASON
LPL RESEARCH WEEKLY MARKET COMMENTARY May 14 2018 IMPRESSIVE EARNINGS SEASON John Lynch Chief Investment Strategist, LPL Financial Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial KEY TAKEAWAYS
More informationBull Market: From Longest to Strongest?
Robert Kavcic, Senior Economist August 24, 2018 Bull Market: From Longest to Strongest? To much fanfare, the U.S. equity bull market became the longest (but not yet strongest) in post-war history this
More informationThe Stock Market's Final Four
The Stock Market's Final Four April 2, 2019 by John Lynch of LPL Financial The NCAA Final Four is set. On the men s side, Auburn, Michigan State, Texas Tech, and Virginia are headed to Minneapolis to determine
More informationEARNINGS UPDATE: FIVE OBSERVATIONS COMMENTARY FIVE KEY OBSERVATIONS KEY TAKEAWAYS LPL RESEARCH WEEKLY MARKET. February
LPL RESEARCH WEEKLY MARKET COMMENTARY KEY TAKEAWAYS Fourth quarter earnings season has not been a blowout by any stretch, but growth has been solid and puts the earnings recession further in the rear view
More informationTax reform update & investment implications
On December 15, 2017, the House-Senate Conference Committee released a reconciled version of the tax reform legislation (Tax Cuts and Jobs Act (HR 1)) passed by the House on November 16th. It is anticipated
More informationOverall M&A Market Commentary
Overall M&A Market Commentary Middle market M&A activity continued its decline in 3Q17, recording another quarter of lower deal volume and lower dollar value. While on the surface this is disconcerting,
More informationInterest rates: How we got here and where we re going
SITUATION ANALYSIS Interest rates: How we got here and where we re going Summary Investors are understandably concerned about the state of the bond market today given that interest rates began moving sharply
More informationQ&A Market Implications of Tax Reform
IN-D EPTH A NALYSIS OF TIMELY INVESTMENT TOPICS Q&A Market Implications of Tax Reform December 27, 2017 Investment Strategy Team Key Takeaways» The Tax Cuts and Jobs Act was signed into law on December
More informationFourth Quarter Market Outlook. Kim Huebner, CFA Don Powell, CFA Joseph Styrna, CFA
Fourth Quarter 2017 Market Outlook Kim Huebner, CFA Don Powell, CFA Joseph Styrna, CFA Economic Outlook Growth Increasing, Spending Modest, Low Unemployment 2017 2016 2015 2014 2013 2012 2011 GDP* Q3:
More informationFIRST QUARTER EARNINGS PREVIEW
LPL RESEARCH WEEKLY MARKET COMMENTARY KEY TAKEAWAYS The new tax law, solid economic growth globally, robust manufacturing activity, and a weak U.S. dollar set up another potentially strong earnings season.
More informationFIVE FORECASTERS: FEW WARNING SIGNS
LPL RESEARCH WEEKLY MARKET COMMENTARY January 25 2016 FIVE FORECASTERS: FEW WARNING SIGNS Burt White Chief Investment Officer, LPL Financial; Jeffrey Buchbinder, CFA Market Strategist, LPL Financial; Barry
More informationWhat s your tax reform IQ? Top 10 takeaways
What s your tax reform IQ? Top 10 takeaways On December 22, 2017, President Trump signed into law the highly anticipated tax bill, and most provisions became effective on January 1, 2018. For the first
More informationU.S. Equities: Navigating a Slow Growth Environment
SITUATION ANALYSIS U.S. Equities: Navigating a Slow Growth Environment Executive summary Equities ended first quarter by posting lackluster results largely due to economic uncertainty and heightened geopolitical
More informationTax Reform: The Implications for Investors
LEADERSHIP SERIES Tax Reform: The Implications for Investors How the Tax Cuts and Jobs Act could influence the economy and asset markets Key Takeaways Corporate tax cuts should support earnings, but the
More informationTax reform investment implications: How much bang for the bucks?
December 2017 Tax reform investment implications: How much bang for the bucks? Brian Nick Chief Investment Strategist Saira Malik Head of Equities Lisa Black Head of Fixed Income John Miller Head of Municipals
More informationEARNINGS UPDATE: RAISING THE BAR
LPL RESEARCH WEEKLY MARKET COMMENTARY May 15 2017 EARNINGS UPDATE: RAISING THE BAR Burt White Chief Investment Officer, LPL Financial Jeffrey Buchbinder, CFA Market Strategist, LPL Financial KEY TAKEAWAYS
More informationTax Reform: A Guide for Investors
INSIGHTS Tax Reform: A Guide for Investors January 2018 203.621.1700 2018, Rocaton Investment Advisors, LLC EXECUTIVE SUMMARY In December 2017, Congress passed the Tax Cuts and Jobs Acts ( TCJA ). The
More informationEconomic and Market Outlook
Economic and Market Outlook Fourth Quarter 2018 Investment Products: Not FDIC Insured No Bank Guarantee May Lose Value Past performance is no guarantee of future results. Financial term and index definitions
More informationTAX BULLETIN NOVEMBER 8, 2017
TAX BULLETIN 2017-5 NOVEMBER 8, 2017 0BMAJOR TAX REFORM BILL INTRODUCED: 1BWE ARE OFF AND RUNNING OVERVIEW The days of campaign proposals, blueprints, and frameworks are over. We now have a detailed tax
More information2018 Asset Class Outlooks
218 Asset Class Outlooks JANUARY 218 We consider 217 to have been a strong year for risk assets, driven by buoyed market optimism following the presidential election, with promises of tax reform and a
More informationA VERY GOOD SIX MONTHS FOR SMALL CAPS. Russell 2000, Relative Performance vs. Russell Jul May Mar Jun 2014.
LPL RESEARCH WEEKLY MARKET COMMENTARY il 20 SIZING UP SMALL CAPS Burt White Chief Investment Officer, LPL Financial Jeffrey Buchbinder ket Strategist, LPL Financial KEY TAKEAWAYS The Russell 2000 Index
More information2018 Investment and Economic Outlook
2018 Investment and Economic Outlook Presented 3/19/18 Jeffrey Neer, CFA Client Portfolio Manager 410-237-5592 jeffrey.neer@pnc.com 1 Monetary Policy: Key Factors Inflation U.S. U.S. Labor Market 2.4%
More informationA year of opportunities
Foresters Financial Clark D. Wagner President Foresters Investment Management Company, Inc. and Chief Investment Officer Foresters Financial Edwin D. Miska Director of Equities Foresters Investment Management
More informationOBSERVATION. TD Economics U.S. DEFICITS & DEBT: PAST, PRESENT & FUTURE
OBSERVATION TD Economics U.S. DEFICITS & DEBT: PAST, PRESENT & FUTURE Highlights The U.S. budget deficit is declining sharply. From 1.9% in fiscal 29 and 6.8% in 212, the Congressional Budget Office (CBO)
More informationInvesting in a New Tax Regime Michael A. Tyler, CFA, Chief Investment Officer December 27, 2017
Investing in a New Tax Regime Michael A. Tyler, CFA, Chief Investment Officer December 27, 2017 ON OUR MINDS Republicans pushed their tax bill through Congress a week ago, and President Trump signed it
More informationInterest rates: How we got here and where we re going
Interest rates: How we got here and where we re going Prepared July 5, 2013 Summary Investors are understandably concerned about the state of the bond market today given that interest rates began moving
More informationMarket Outlook New Castle Investment Advisors, LLC December 28, 2017
New Castle Investment Advisors, LLC December 28, 2017 Market Outlook 2017 Executive Summary The U.S. bull market continues. We expect the domestic stock market to finish up in 2017, probably low double
More informationMarket Insight: Turn Down the News Volume, Listen to the Market
August 9, 2018 Market Insight: Turn Down the News Volume, Listen to the Market If you just listened to the news headlines, it would be hard to find reasons to like this market. Trade Wars ; Tariff Threats
More information2016 May Financial Market Update
Charles Sherry Director, Institutional Education Group Blue Ocean Global Wealth 51 Monroe St., Plaza West 06 Rockville, MD 20850 Tel: 720.308.4560 csherry@blueoceanglobalwealth.com 2016 May Financial Market
More informationOverall M&A Market Commentary
Overall M&A Market Commentary The U.S. economy continues to show strong momentum with 2Q18 GDP growth recorded at 4.2%. The Blue Chip consensus estimate for 3Q18 GDP growth of 3.3% and the Atlanta Fed
More information2017 was a Banner Year Look for a More Normal 2018
Retirement Income Solutions Helping to grow and preserve your wealth 2017 was a Banner Year Look for a More Normal 2018 February 2018 Summary The U.S. stock market posted a strong 2017 with returns of
More informationEconomic Overview First Quarter Partnering With Families To Make Life Better
Economic Overview First Quarter 2018 Partnering With Families To Make Life Better Market Summary Data Through March 31, 2018 Last 3 Months Last 12 Months Last 5 Years Last 10 Years Last 15 Years FIXED
More informationMarket Outlook By Mark Connolly, Principal, New Castle Investment Advisors, LLC. Prepared January 15, 2018
Prepared January 15, 2018 Market Outlook 2018 By Mark Connolly, Principal, New Castle Investment Advisors, LLC Last year s stock market performance was nothing less than spectacular. The Dow Jones Industrial
More informationTax reform investment implications: How much bang for the bucks?
December 2017 Tax reform investment implications: How much bang for the bucks? Brian Nick Chief Investment Strategist Saira Malik Head of Equities Lisa Black Head of Fixed Income John Miller Head of Municipals
More informationExplore the themes and thinking behind our decisions.
ASSET ALLOCATION COMMITTEE VIEWPOINTS First Quarter 2017 These views are informed by a subjective assessment of the relative attractiveness of asset classes and subclasses over a 6- to 18-month horizon.
More informationEARNINGS SEASON BEGINS
LPL RESEARCH WEEKLY ECONOMIC COMMENTARY April 3 2017 APRIL PREVIEW Matthew E. Peterson Chief Wealth Strategist, LPL Financial Ryan Detrick, CMT Senior Market Strategist, LPL Financial KEY TAKEAWAYS April
More informationQ3 Investment Review & Outlook
Q3 Investment Review & Outlook October 22, 2018 Russ Allen, CIO Disclosures Important Disclosures: This information is for discussion purposes only and is being furnished on October 22, 2018. This information
More informationYOUR FINANCIAL FUTURE
YOUR FINANCIAL FUTURE April 2015 In This Issue Weekly Market Commentary Week of April 20, 2015 The Russell 2000 Index hit a fresh all-time high last week (on tax day, April 15, 2015) and has outpaced large
More informationRed October ECONOMIC RESEARCH. Robert Kavcic, Senior Economist October 26, Market Performance as of October 26, 2018
Robert Kavcic, Senior Economist October 26, 2018 Red October Stocks extended their slump this week, with the S&P 500 cracking well below its 200-day moving average and entering correction territory. The
More informationThe Impact of Tax Reform on the Municipal Bond Market in 2018
The Impact of Tax Reform on the Municipal Bond Market in 2018 January 2018 By: The Standish Municipal Bond Team On December 20, President Trump signed legislation passed by both houses of Congress, enacting
More informationKey takeaways. What it may mean for investors FIRST A NALYSIS NEWS OR EVENTS T HAT MAY AFFECT Y OUR INVESTMENTS. Global Investment Strategy Team
FIRST A NALYSIS NEWS OR EVENTS T HAT MAY AFFECT Y OUR INVESTMENTS Global Investment Strategy Team February 5, 2018 Market Sell-off What Investors Need to Know Now Key takeaways» A swift climb in the 10-year
More informationThe Fed s Rationale for Raising Rates
The Fed s Rationale for Raising Rates March 10, 2017 by Carl R. Tannenbaum, Asha Bangalore, Ankit Mital of Northern Trust SUMMARY The Fed s Rationale for Raising Rates As recently as a week and a half
More informationINVESTMENT STRATEGY. Volatility Returns. us.cibc.com/private-wealth
INVESTMENT FINANCIAL STRARTEGY MARKETS VOLATILITY MONITOR RETURNS INVESTMENT STRATEGY Volatility Returns 1 The S&P 500 has dropped over six consecutive trading sessions and is now 7% below the all-time
More informationAsset Allocation Model March Update
The month of February was marked by a sell-off in global equity markets and a sudden increase in market volatility with the CBOE Volatility Index reaching its highest level since August 2015. The rout
More informationTaylor Financial Group s Monthly Planning Letter
Taylor Financial Group s Monthly Planning Letter December 017 Year-End Planning December is Year-End Planning Month at Taylor Financial Group We have prepared this short newsletter to provide you with
More informationFederal Tax Proposals and the Municipal Bond Market
MUNICIPAL COMMENTARY November 15, 2017 U.S. MUNICIPAL BOND MARKET Federal Tax Proposals and the Municipal Bond Market History of the Threat to the Municipal Bond Tax Exemption In recent decades, a number
More informationThird Quarter Market Review
Third Quarter Market Review The S&P 500 continued its winning streak, with the index appreciating in value by 3.96% for the quarter (see chart below). This market barometer was up all three months of the
More informationDON T SELL IN MAY COMMENTARY THE WORST SIX MONTHS OF THE YEAR KEY TAKEAWAYS LPL RESEARCH WEEKLY MARKET SELL IN MAY. May
LPL RESEARCH WEEKLY MARKET COMMENTARY May 7 2018 DON T SELL IN MAY John Lynch Chief Investment Strategist, LPL Financial Ryan Detrick, CMT Senior Market Strategist, LPL Financial KEY TAKEAWAYS The May
More informationCLICK TO EDIT MASTER TITLE STYLE Market Perspective
Market Perspective Global Earnings Remain Supportive November 8, 2017 Keith Lerner, CFA, CMT Managing Director, Chief Market Strategist 2017 SunTrust Banks, Inc. SunTrust is a federally registered service
More informationPERSPECTIVES JANUARY Our investment managers discuss insights, themes, and trends that may shape the markets.
PERSPECTIVES JANUARY 2018 Our investment managers discuss insights, themes, and trends that may shape the markets. MFC0448-0118 Are low levels of volatility and continued growth sustainable? In times like
More informationWELCOME TO THE FOURTH QUARTER
LPL RESEARCH WEEKLY MARKET COMMENTARY IBG FINANCIAL ADVISORS October 3 2016 WELCOME TO THE FOURTH QUARTER Burt White Chief Investment Officer, LPL Financial Ryan Detrick, CMT Senior Market Strategist,
More informationTAX REFORM SIGNED INTO LAW
TAX BULLETIN 2017 9 DECEMBER 22, 2017 TAX REFORM SIGNED INTO LAW OVERVIEW Without much fanfare but with typical political controversy, the House and Senate successfully reconciled their respective tax
More informationThe Investors Newsletter
I N S I D E T H I S I S S U E 1 Perspectives 2 Summary of Indexes 3 Fundamentals & Indicators 4 Index Chart & Analysis economic reports from the past quarter are not indicating the push into higher prices
More informationThe inflation threat: real or exaggerated?
Capital market insights Conversation guide March 2018 The inflation threat: real or exaggerated? Volatility has returned to the stock market, as investors have become increasingly concerned that accelerating
More informationFOURTH QUARTER EARNINGS SEASON
LPL RESEARCH WEEKLY MARKET COMMENTARY KEY TAKEAWAYS We expect a solid fourth quarter earnings season and believe a 14 16% year-over-year increase in S&P 5 earnings is achievable. Economic surprises, strong
More informationNO PAIN, NO GAIN: 2016 MAY REQUIRE TOLERANCE FOR VOLATILITY
LPL RESEARCH WEEKLY MARKET COMMENTARY December 07 2015 NO PAIN, NO GAIN: 2016 MAY REQUIRE TOLERANCE FOR VOLATILITY Burt White Chief Investment Officer, LPL Financial Jeffrey Buchbinder, CFA Market Strategist,
More informationBUYING AT RECORD HIGHS
LPL RESEARCH PRIVATE CLIENT THOUGHT LEADERSHIP WEALTH INSIGHTS BUYING AT RECORD HIGHS July 2016 EQUITIES, EVEN WHEN AT NEW ALL-TIME HIGHS, HAVE HISTORICALLY OFFERED LONG- TERM OPPORTUNITY FOR INVESTORS
More informationTHE BOTTOM LINE CORPORATE PENSIONS: A Look Beyond the Funded Status of Corporate Pensions EXECUTIVE SUMMARY. Dan Kutliroff Head of Solutions Strategy
CORPORATE PENSIONS: THE BOTTOM LINE A Look Beyond the Funded Status of Corporate Pensions EXECUTIVE SUMMARY The damage done to corporate pension plans sits high on the list of many lasting impacts of the
More informationJuly 31, First Street NE, Suite 510 Washington, DC Tel: Fax:
820 First Street NE, Suite 510 Washington, DC 20002 Tel: 202-408-1080 Fax: 202-408-1056 center@cbpp.org www.cbpp.org July 31, 2012 PROPOSED TAX REFORM REQUIREMENTS WOULD INVITE HIGHER DEFICITS AND A SHIFT
More informationChange, Growth and Uncertainty
SPRING 2017 Change, Growth and Uncertainty SUMMARY ANTHONY CHAN, PHD CHIEF ECONOMIST FOR CHASE Anthony is a member of the J.P. Morgan Global Investment Committee. He travels extensively to meet with Chase
More informationPreliminary Details and Analysis of the Senate s 2017 Tax Cuts and Jobs Act
SPECIAL REPORT No. 240 Nov. 2017 Preliminary Details and Analysis of the Senate s 2017 Tax Cuts and Jobs Act Tax Foundation Staff Key Findings The Senate s version of the Tax Cuts and Jobs Act would reform
More informationACG Market Review. Second Quarter Global Highlights: Economy Announced tariffs have so far failed to slow down economic activity
ACG Market Review Second Quarter 2018 Global Highlights: Economy Announced tariffs have so far failed to slow down economic activity Equities U.S. equites turn positive for the year backed by strong corporate
More informationTHEMATIC INVESTING: A NATURAL WAY OF THINKING ABOUT PORTFOLIOS
LPL RESEARCH PRIVATE CLIENT THOUGHT LEADERSHIP DISRUPTIVE INSIGHTS THEMATIC INVESTING: A NATURAL WAY OF THINKING ABOUT PORTFOLIOS October 2015 THEMATIC INVESTING ALLOWS INVESTORS TO MOVE AWAY FROM THE
More information2019 TAX PLANNING. Year-End Preparations HOW TO PREPARE FOR THE 2019 TAX SEASON
2019 TAX PLANNING Year-End Preparations The countdown begins. Once the clock rolls us into 2019, tax season gets underway. The old calendar year, 2018, will have been put officially to rest. Deductions
More informationManaged Futures managers look for intermediate involving the trading of futures contracts,
Managed Futures A thoughtful approach to portfolio diversification Capability A properly diversified portfolio will include a variety of investments. This piece highlights one of those investment categories
More informationValue Equity Q Commentary. Market Review: Performance Analysis:
S C H A F E R C U L L E N Value Equity Q4 2017 Commentary Market Review: C A P I T A L M A N A G E M E N T The U.S. equity market closed 2017 with a particularly strong quarter, with the S&P 500 up 6.6%
More informationTax Cuts and Jobs Act: Impact on Individuals
Community Wealth Advisors 3035 Leonardtown Road Waldorf, MD 20601 301 861 5384 wealth@communitywealthadvisors.com www.communitywealthadvisors.com Tax Cuts and Jobs Act: Impact on Individuals On December
More informationA Look at the Trump Tax Proposal
2016 A Look at the Trump Tax Proposal UPDATED November 23, 2016 www.cordascocpa.com INTRODUCTION Many individuals and businesses involved in year-end tax planning are trying to predict the tax changes
More informationFidelity s Perspectives on Sector Investing
Fidelity s Perspectives on Sector Investing Hello, I m Denise Chisholm, a sector strategist here at Fidelity Investments. Welcome to our new video series, Fidelity s Perspectives on Sector Investing. Our
More informationCore-Satellite Portfolios The Hoge-Barrett Group
Core-Satellite Portfolios The Hoge-Barrett Group BB&T Scott & Stringfellow 110 South Stratford Road, Suite 400 Winston-Salem, NC 27104 336-726-8274 800-476-7268 WHO WE ARE Brett Hoge and Tom Barrett, CFP
More informationDecember Employment Report Review ACCELERATING WAGE INFLATION HELPS TO RESOLVE DISCONNECT BETWEEN FED AND MARKET ON JOBS
LPL RESEARCH WEEKLY ECONOMIC COMMENTARY January 9 2017 JANUARY GAME PLAN John J. Canally, Jr., CFA Chief Economic Strategist, LPL Financial Ryan Detrick, CMT Senior Market Strategist, LPL Financial KEY
More informationTax Reform 2017: Frequently Asked Questions
J.P. MORGAN PRIVATE BANK WASHINGTON WATCH Tax Reform 2017: Frequently Asked Questions November 22, 2017 The House passed a tax reform bill on November 16, and the Senate is expected to debate and vote
More informationNOVEMBER Asset Allocation Committee Update
NOVEMBER 2017 Asset Allocation Committee Update The CIBC Atlantic Trust Asset Allocation Committee recently increased exposure to the Developed International (EAFE) equity markets in its asset allocation
More informationDo tax rates affect municipal bond yields?
January 2018 Do tax rates affect municipal bond yields? Cadmus Hicks Manager of Performance and Risk Analysis Market Strategist Nuveen Asset Management Tax reform has caused people to wonder if tax-exempt
More information2007 Outlook & Opportunities Terry Sandven & Christian Heitzman Portfolio Strategy Group January 2007
2007 Outlook & Opportunities Terry Sandven & Christian Heitzman Portfolio Strategy Group January 2007 Since 1895. Member SIPC and NYSE. 1 Overview Review of 2006 Outlook for 2007 Interest Rates (Fed decisions)
More informationHOPE FOR ROTATION. So, let me talk a little about each of these. Tariffs. Tariffs are restrictions to trade; they are a tax and they cause inflation.
HOPE FOR ROTATION We ve said repeatedly that we believe the current bull market will continue until there is either a recession or a restrictive monetary policy. So far, that position has been accurate
More informationCash Management Portfolios
September 30, 2018 Portfolio Manager Commentary Cash Management Portfolios Chief Investment Officer Jim Palmer What market conditions had a direct impact on the bond market this quarter? Positive economic
More informationWhat Is Behind the Equity Sell-Off?
IN-D EPTH A NALYSIS OF THE E QUITY MARKETS Investment Strategy Team What Is Behind the Equity Sell-Off? March 26, 2018 Key takeaways» Investors are concerned about the negative implications of a potential
More informationGLOBAL EQUITY MARKET OUTLOOK
LPL RESEARCH WEEKLY MARKET COMMENTARY KEY TAKEAWAYS 2017 was an excellent year for international equities, particularly EM. We favor the United States and EM equities for tactical global asset allocations
More informationTHIS QUARTER S THEMES
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE In the Know Stay up-to-date on ETFs October 2018 STAY IN THE KNOW WITH ETFs We are dedicated to providing valuable information that empowers better decisions
More informationAn Economic Perspective on Dividends
2017 An Economic Perspective on Dividends Table of Contents Corporate Outlook... 1 2 Market Environment... 3 7 Payout Ratio... 8 9 Long-term View...10 12 Global View... 13 16 Active Management... 17 Risk
More informationCORPORATE BEIGE BOOK COMMENTARY
LPL RESEARCH WEEKLY MARKET COMMENTARY December 11 217 CORPORATE BEIGE BOOK UPBEAT AS EXPECTED John Lynch Chief Investment Strategist, LPL Financial Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial
More informationPERSPECTIVE ON MARKET VOLATILITY
LPL RESEARCH WEEKLY MARKET COMMENTARY October 15 2018 PERSPECTIVE ON MARKET VOLATILITY John Lynch Chief Investment Strategist, LPL Financial Ryan Detrick, CMT Senior Market Strategist, LPL Financial Jeffrey
More informationMarket & Portfolio Update April 2017
Reaching Higher Market & Portfolio Update April 2017 2500 Chamber Center Dr. Suite 202 Ft. Mitchell, KY 41017 Office: 859-815-8566 Toll Free: 800-350-0493 Fax: 859-815-8567 Market Update The global economic
More informationFrom the Hill to the Street: An insider s perspective. Not FDIC Insured Not Bank Guaranteed May Lose Value
From the Hill to the Street: An insider s perspective Not FDIC Insured Not Bank Guaranteed May Lose Value Eaton Vance Investment Managers From the Hill to the Street An Insiders Perspective Sponsored by:
More informationWeekly Market Commentary
LPL FINANCIAL RESEARCH Weekly Market Commentary November 18, 2014 Emerging Markets Opportunity Still Emerging Burt White Chief Investment Officer LPL Financial Jeffrey Buchbinder, CFA Market Strategist
More informationDURSO WEALTH MANAGEMENT GROUP AT MORGAN STANLEY May 31, 2016 ECONOMIC LANDSCAPE
ECONOMIC LANDSCAPE Noise, very low levels of optimism, heightened levels of pessimism, and even more noise have flooded the headlines in the month of May. Here are some of the topics I am sure you have
More information2013 Outlook. We help manage your family s financial life. Officer. Ashley M. McCarthy. Financial Consultant. 4 th Quarter 2012 Review
2013 Outlook 4 th Quarter 2012 Review We help manage your family s financial life. Christopher W. Davis, CFP, CIMA Managing Director Investments Officer Harriet R. White, CRPC Financial Consultant Karen
More informationCarl Nadwodny, CFA Chief Investment Officer 460 East Swedesford Rd, Suite 2010 Wayne, PA (484)
Carl Nadwodny, CFA Chief Investment Officer 460 East Swedesford Rd, Suite 2010 Wayne, PA 19087 (484) 477-4100 Quarterly Financial Market Update January 1, 2018 The summary below is provided for educational
More informationDiversified Stock Income Plan
Joseph E. Buffa, Equity Sector Analyst Michael A. Colón, Equity Sector Analyst Diversified Stock Income Plan 2017 Concept Review The Diversified Stock Income Plan (DSIP List) focuses on companies that
More informationAnalyst's Notes. Argus Recommendations
Report created Jan 12, 2018 Page 1 OF 5 JPMorgan Chase is one of world's largest diversified banking firms. The company operates a leading global corporate and investment bank and is the second-largest
More information