{"id":596,"date":"2021-07-12T00:00:00","date_gmt":"2021-07-12T00:00:00","guid":{"rendered":"https:\/\/www.retirementrefined.com\/index.php\/2021\/07\/12\/markets-through-year-end-corporate-profit-reports-charitable-deductions\/"},"modified":"2021-07-12T00:00:00","modified_gmt":"2021-07-12T00:00:00","slug":"markets-through-year-end-corporate-profit-reports-charitable-deductions","status":"publish","type":"post","link":"https:\/\/www.retirementrefined.com\/markets-through-year-end-corporate-profit-reports-charitable-deductions","title":{"rendered":"Markets Through Year-End? \/ Corporate Profit Reports \/ Charitable Deductions"},"content":{"rendered":"

The S&P 500 Index<\/strong> is now up over 17% year-to-date<\/strong>.\u00a0 It\u2019s one of the highest performing major stock market indexes in the US, and around the globe.<\/p>\n

For the S&P<\/strong> to double its return by year-end<\/strong>, the Index would need to end the year at approximately 5111<\/strong>.\u00a0 For a 10% return from here<\/strong>, the index would need to rise to 4805.<\/strong><\/p>\n

Much needs to go \u201cright\u201d <\/strong>for either to happen.\u00a0 Inflation<\/strong> will truly need to prove transitory, and the Fed<\/strong> will have to communicate it’s taper intentions carefully. The major unknown<\/strong> factor is the 6-month future<\/strong> of how Covid will impact<\/strong> when the colder weather reappears.\u00a0 My mind is certainly working overtime on the last point.\u00a0 The “what-ifs” are significant.<\/strong>\u00a0<\/strong><\/p>\n

Last week was mostly higher<\/strong>, with the Dow rising .25%, the S&P 500 .42% and the Nasdaq Composite .43%.\u00a0 The Russell 2000, foreign stocks and emerging market stocks were down respectively, (1.11%), (.07%) and (2.58%).<\/p>\n

\"\"Bond yields are confusing most<\/strong> people with the 10-Year yield down to 1.36%, the lowest level since February 2000.\u00a0 Hmmm! Perhaps the bond market is looking forward to when the stimulus fades and the current rate of economic growth also slows?<\/p>\n

Corporate Profits (Costs?)<\/strong><\/p>\n

This week marks the start of quarterly corporate profit<\/strong> reports.\u00a0 Certainly, we\u2019re expecting profits to be significant<\/strong> overall in Corporate America.<\/p>\n

Profit margins<\/strong> have risen significantly, companies have been able to refinance debt at rock bottom costs.\u00a0 Over the last few months however, our monthly government reports have suggested, many of corporate America\u2019s input costs are rising significantly.\u00a0 Should not be a surprise.<\/p>\n

The important part <\/strong>of this quarter\u2019s reports will be, what is said about rising input costs<\/strong>? Costs, including oil, food, various input commodities, supply constraints, increasing wage costs may start to dent profit margins going forward, unless they moderate.<\/p>\n

Now, think about profit reports a year from now<\/strong>, when companies compare the 2nd<\/sup> Quarter<\/strong> 2022, to the 2nd<\/sup> Quarter this year<\/strong>.\u00a0 To increase profits significantly from here will be a challenge.\u00a0 The markets will sure be paying attention!<\/p>\n

Charitable Deduction<\/strong><\/p>\n

Just as quick reminder, in 2021 most taxpayers can deduct a charitable contribution in the<\/strong> amount of $300 and $600 for joint filers<\/strong>.\u00a0 This can be done even if you take the standard deduction and don\u2019t itemize.\u00a0 If you\u2019re charitably inclined, this is a no-brainer. \"\"<\/p>\n

Otherwise, it\u2019s challenging to obtain a tax benefit with your charitable contributions.\u00a0 I\u2019ll be discussing additional ways in future blog posts this year, however why not write the $300\/$600 check today?! As always with taxes, it\u2019s important to consult with your trusted advisor, prior to making any decisions.<\/p>\n

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The S&P 500 Index is now up over 17% year-to-date.\u00a0 It\u2019s one of the highest performing major stock market indexes in the US, and around the globe. For the S&P to double its return by year-end, the Index would need to end the year at approximately 5111.\u00a0 For a 10% return from here, the index […]<\/p>\n","protected":false},"author":3,"featured_media":598,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts\/596"}],"collection":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/comments?post=596"}],"version-history":[{"count":0,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/posts\/596\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/media\/598"}],"wp:attachment":[{"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/media?parent=596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/categories?post=596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.retirementrefined.com\/wp-json\/wp\/v2\/tags?post=596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}