Wednesday , January 29 2020
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Tag Archives: Financial Planning

Technically Speaking: “Coronavirus” Triggers Overdue Market Correction

Over the last few weeks, we have discussed the outsize market advance driven by the Fed’s massive liquidity injections into the market. As we discussed with our RIAPRO subscribers (30-day RISK FREE Trial) we stated: “If it appears to you that the recent rally is an anomaly, your thoughts do not deceive you. The graph below shows that recent returns divided by annualized volatility (risk) have been running higher than at any time since the financial crisis. This standard calculation of return...

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#FPC: New Advisors: Stop Doing These Two Things.

The higher stocks ride a glide path of zero volatility, the greater the risks for investors and their financial partners to fall victim to overconfidence. After all, we are human;  when it comes to money and emotions our brains are no smarter than a lizard’s.  As markets continue to be  hyper-fueled by unconventional monetary and fiscal policy in the form of tax cuts, it’s normal to suffer from chronic FOMO or Fear Of Missing Out. It feels like this charging bull is invincible.  You don’t...

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MacroView: Elites View The World Through “Market Colored” Glasses

It is easy to suggest the economy is booming when your net worth is in the hundreds of millions, if not billions, of dollars, or when your business, and your net worth, directly benefit from surging asset prices. This was the consensus from the annual gaggle of the ultra-rich, politicians, and media stars in Davos, Switzerland this past week. As J.P. Morgan Chase CEO Jamie Dimon told CNBC on Wednesday the stock market is in a “Goldilocks place.”  Of course, it is when you bank receives an...

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10 Major Trends in IRS Audits

What feeling do you have when you hear IRS? Is there a sick feeling in the pit of your stomach or do you just roll your eyes knowing that April 15th will be here all too quickly? Throw in the word audit and emotions and blood pressure can reach levels you never dreamed of. CPA Jim Buttonow has 30 years of experience in tax technology and representing people before the IRS. He’s written this article outlining 10 major trends he sees in IRS audits. Most taxpayers envision Internal Revenue...

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Technically Speaking: Extreme Deviations & Eventual Outcomes

The good news is that with the market closed yesterday, the extreme extensions of the market did not get any more extreme. Also, it doesn’t change our analysis much from this past weekend’s missive either: “This week, the market pushed those deviations even further as the S&P 500 has now pushed into 3-standard deviation territory above the 200-WEEK moving average.” “There have only been a few points over the last 25-years where such deviations from the long-term mean were prevalent. In...

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FPC: Do You Have A “Financial Vulnerability” Cushion?

REGISTER NOW for our most popular workshop: THE RIGHT LANE RETIREMENT CLASS The Westin Austin at the Domain- 11301 Domain Drive, Austin, TX 78758 February 8th from 9-11am. Everyone has heard of having emergency funds, but how many have heard of a financial vulnerability cushion (FVC)? Common, old rule of thumb financial rules typically dictate savings rates, but in times like we currently face should we be doing something different? I know, I know times are great. Markets are hitting...

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MacroView: 2020 Market & Investment Outlook

On Tuesday, Michael Lebowitz and I held private events with our high net worth clients to review our investment strategy and outlook for the rest of the year. The purpose of these events was to provide clarity on portfolio allocation, weightings,  and the risks that could potentially lead to large losses of capital. As we noted in last weekend’s newsletter, we recently took profits in our various portfolio strategies to raise cash slightly, and reduce excess portfolio risk. Given our...

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The Fed Won’t Avert The Next “Crisis,” They Will Cause It.

John Mauldin recently penned an interesting piece: “Ignoring problems rarely solves them. You need to deal with them—not just the effects, but the underlying causes, or else they usually get worse. In the developed world, and especially the US, and even in China, our economic challenges are rapidly approaching that point. Things that would have been easily fixed a decade ago, or even five years ago, will soon be unsolvable by conventional means. Yes, we did indeed need the Federal Reserve to...

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Rosso’s 2020 Reading List – Part II

“A reader lives a thousand lives before he dies… The man who never reads lives only one.” – George R.R. Martin. I’m not sure what I would do without books. On weekends, I can be found in antique stores searching out volumes written in many instances, over 100 years ago from authors most of us never knew existed. These treasures don’t cost much. The words are priceless. I find that absorbing fiction and self-improvement as well as financial or economic titles, fosters an ability to think...

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401(k) Contribution Limit Goes Up in 2020

Call it a gift. Call it crazy. Call it whatever you want. But it’s good news. The IRS will let you put more money into your 401(k) account in 2020. The maximum contribution to a 401(k) this year is $19,500, up from $19,000 in 2019. If you are age 50 or older, you can make an additional $6,500 catch-up contribution for a total of $26,000. For IRAs, the contribution limit is unchanged at $6,000. And if you are 50 or older, the catch-up contribution remains $1000. The overall limit for a defined...

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