Investors concerned about recent market swings wonder if there’s any relief in sight. The short answer: not any time soon. The Chief Investment Officer at Schwab, Liz Ann Sonders forecasts the near future for this secular bull market. As tax deadlines approach, the IRS recently announced taxes collected from affluent taxpayers rose more than expected in 2014, underscoring the need to integrate investment planning with tax awareness. For those wishing to take a deep dive into planning for retirement living, we link to a webcast. Finally, if you think the costs of things you buy on a day-to-day basis are rising, you might be right. You can find out by checking the EPI, or Everyday Price Index. The American Institute for Economic Research explains how it works.
Running To Stand Still: Wild Swings Taking Market Nowhere. Stocks have gone 28 trading days without showing back-to-back gains. Historically this is a unique experience. Liz Ann Sonders, Chief Investment Strategist at Schwab, reviews the current market. She reaffirms their view that although the secular bull market that began in 2009 is not over, it’s likely to be a much choppier ride for investors…possibly until earnings can catch back up to valuations.
New Taxes on Affluent Pull in $23 Billion. Affluent taxpayers paid $23 billion in additional taxes in 2014 due to a pair of tax increases to help fund the Affordable Care Act, according to data recently released by the Internal Revenue Service. Total revenue was about $3 billion higher than forecast. This all underscores the need to integrate investment planning with tax awareness.
Planning for Retirement Living: The Financial Implications of Aging. This webcast made available by the CFA Institute is on planning for retirement, with focus on understanding longevity trends and risk; planning for cognitive and physical changes in old age; and avoiding risks and planning for a more satisfying life in retirement.
What Is The Everyday Price Index (EPI)?– The EPI, published by the American Institute for Economic Research, aims to reflect the price uncertainty (i.e., unexpected and unavoidable price changes) people face in connection with purchases they cannot easily adjust from one month to the next. The EPI tracks a subset of prices out of the broader Consumer Price Index (CPI), reported by the Bureau of Labor Statistics (BLS). The CPI includes prices of all goods and services purchased by a typical urban consumer. The EPI, in contrast, includes only the goods and services purchased on a day-to-day basis. The EPI includes prices of such everyday items as food, utilities, fuel, prescription drugs, telephone services, etc. The EPI index has risen at a faster rate than the CPI over the past ten years.
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Disclosure – The articles mentioned in This Week with J. Mark Nickell & Co. are for information and educational purposes only. They represent a sample of the numerous articles that the firm reads each week to stay current on financial and economic topics. The articles are linked to websites separate from the J. Mark Nickell & Co. website. The opinions expressed in these articles are the opinions of the author and not J. Mark Nickell & Co. This is not an offer to buy or sell any security. J. Mark Nickell & Co. is under no obligation to update any of the information in these articles. We cannot attest to the accuracy of the data in the articles.
