How concerned should I be about inflation?
If you pay attention to financial news, you are probably seeing a lot of discussion about inflation, which has reared its head in the U.S. economy after being mostly dormant for the last decade. In May 2021, the Consumer Price Index for All Urban Consumers (CPI-U), often called headline inflation, rose at an annual rate of 5.0%, the highest 12-month increase since August 2008.1
What are the proposed tax increases on personal investments?
President Joe Biden’s American Families Plan includes some significant overall tax increases to fund its costs. A key part of his tax plan includes substantial increases in the capital gains tax rate for some taxpayers. Here is a rundown of what could change as far as capital gains and what this could mean for your clients.
How will estate tax change?
Currently, U.S. citizens and non-U.S. citizens domiciled in the U.S. are entitled to an $11.7 million gift and estate tax exemption and are subject to a maximum marginal gift and estate tax rate of 40%. And while the gift and estate tax exemption is scheduled to drop to approximately one-half the current amount on January 1, 2026, there also are tax proposals in play that could change the estate and gift tax laws much sooner.
What are institutional money managers’ recent market views?
Institutional managers are staying pro-risk and look for opportunities from any turbulence. The risk signals are flashing expansionary and overall readings are among the strongest in history. Macro environments are likely to give way to slower, still robust economic and earnings growth powerful enough to elongate the current bull market, but unease over Fed policy and inflation could keep equities range bound in the near term.
