President Biden is certainly a not wasting any time moving forward his agenda. From stimulus checks, a higher minimum wage, money for states, higher income taxes, social security taxes and higher corporate taxes. All are starting to line the table for consideration and will assist us in tax and income planning for our clients.
I’ve certainly learned that you don’t make plans on initial proposals and you never make plans that are permanent, because a permanent law is truly not so.
Higher potential costs for businesses and upper-income taxpayers will not derail the current economic recovery and markets at this time, in my opinion, as it’s so hard to bet against the Federal Reserve and an unlimited congressional checkbook. For now, buckle up and enjoy the ride. It may be a little bumpy.
Markets Higher for the Week
For the week, all equity markets rose as the Dow rose .63%, the S&P 500 1.96%, the Nasdaq Composite 4.19% and the Russell 2000 2.15%.
The best performing US Stock sector year to date is energy, rising 11%, with Consumer Stables the laggard, down (3.7%).
Over the pond international developed stocks rose .70% and Emerging markets rose 2.57%.
Bond yields remained mostly flat for the week, however the Barclays Aggregate Bond Index is down (.75%) year to date. This is one data point to keep your eye on as we go forward!!!
It’s so nice to hear that several of our clients have received their initial Covid-19 vaccine, or are scheduled to do so. Those over 65 should certainly already have signed up, or should do so immediately.
I am a little concerned about equitable distribution, especially for those under age 65. I already know of a handful of people who are under 65, have no health problems, and who are registered to receive the vaccine. In those cases, it’s because “they know somebody”. That seems very unfair, especially as it will probably be required to show proof of the vaccine for recreational activities and travel. I just hope that our government understands, this needs to be equitable.
How will you feel if a peer can jump on an airplane and go to the Caribbean, while you have to wait?
Corporate Earnings Week
This week marks the week where a significant number of major companies report 4th Quarter 2020 earnings/profits. Whether companies beat or miss, probably won’t matter too much as all are receiving a “pass” until we get “back to normal.”
I personally cannot wait until the markets are again gauged on non-pandemic issues. When will that happen? As always, time will tell!!!