We are heading towards the end of the summer and I wanted to update you on a few things:
Financial Markets – Why is the stock market still up in the face of the Delta Variant?The stock market believes that there will NOT be economic lockdowns even with the pandemic still lingering. New Zealand shut down their economy for three weeks, but that is it. There is big difference between mask mandates and shutting an economy down.
The Federal Reserve is still dovish even though we believe we have seen a bottoming in interest rates. We still believe inflation is temporary due to supply chain issues. This is a consensus opinion.
We believe valuations are appropriate given where we are with interest rates. If interest rates were higher, the stock market would be trading at lower values. Accordingly, we believe the stock market is trading at an appropriate valuation.
Corporate earnings remain strong and continue to exceed expectations.
If the Senate approves the $3.5 trillion stimulus package, the market will probably correct due to the tax increases. There are Democratic Senators against the measure which is giving Wall St some comfort. The smaller $1 trillion infrastructure package would be welcome by the financial markets.
September and October are typically volatile months for the stock market, but we are not going to engage in a “timing game” with this. Virtually all of our advisory clients have positions we can use to increase equity exposure in the event of a market sell-off.
More detailed information will come in our quarterly mailing.
Estimated Tax Payments and Planning
As we approach year-end, please contact Marianne Brown, CPA in our office if you need a tax projection done. Remember that Q3 estimates are due on September 15th. We also have our eye on possible estate tax reduction thresholds.
Office and Zoom Meetings
If you would like an in person meeting, NOW IS A GOOD TIME!!!! Eileen and I plan on visiting Europe in mid October for ten days. I will also be in New Jersey during the last two weeks of November and some of December. From January through April of next year, I will be in South Florida and working from there.
Clients can always schedule ZOOM meetings. If you struggle with this technology, our office can help you. You can also come to the office and our team can “Zoom Me In” if needed.
Thank you for your business and please contact us with any questions or comments.
Jack Oujo, CPA/PFS, CFP®, CSA, MS (Taxation)
Oujo Wealth Strategies
1540 Highway 138, Suite 106, Wall, NJ 07719
908-675-5571 – Cell
Jack Oujo – Financial Advisor
Securities offered through Avantax Investment Services℠, Member FINRA, SIPC. Investment advisory services offered through Avantax Advisory Services℠. Insurance services offered through an Avantax affiliated insurance agency.