1099 Tax Statements
Please watch for your tax forms to arrive in the next few weeks. Most of our clients have opted to receive tax statements by mail and Schwab has indicated their initial mailing will be early February. They anticipate a second 1099 mailing mid to late February with updated/revised figures. Please don’t file your taxes until you’re confident that your 1099 forms are complete. And, remember, most of our clients will have two sets of 1099 forms this year – one from Pershing and one from Schwab. If you have any doubt as to the completeness of your 1099 please don’t hesitate to contact our office, we’re here to help.
Also, many of our clients have us work directly with their tax advisor or CPA. If you’d like us to work closely with other professionals on your team please put us in touch and we’ll coordinate with them on your behalf.
Fast Facts – It was a good week for..
Bear Markets, the bear market phenomenon is thought to get its name from the way in which a bear attacks its prey—swiping its paws downward. This is why markets with falling stock prices are called bear markets.
Bookies, after the American Gaming Association estimated that a record 31.5million Americans will wager $7.6 billion on the super bowl, through licensed sportsbooks, office pools, bets with friends, and illegal bookmarks.
Jonathan, a giant tortoise on the island of St. Helena whom Guinness World Records this week organized as the planet’s “oldest chelonian,” a category covering all turtles and tortoises. Jonathan’s estimated age is 190, making him one of the oldest living species on this Earth!
Weekly Focus – Think About It
“Play is an activity enjoyed for its own sake. It is our brain’s favorite way of learning and maneuvering.”
—Diane Ackerman, author and naturalist
Why did stock markets in the United States finish the week lower?
If this were Jeopardy, acceptable answers to that question might include:
Rising inflation. Major U.S. stock indices were trending higher until the Consumer Price Index (CPI) Summary showed inflation at a 40-year high. Consumer prices overall were up 0.6 percent in January with seasonal adjustment, and 7.5 percent over the last 12 months without seasonal adjustment, according to the U.S. Bureau of Labor Statistics. U.S. stocks sold off sharply on the news before regaining lost ground.
Changing Federal Reserve rate-hike expectations. After the inflation report was released, St. Louis Fed President James Bullard indicated that he would like to see the Fed funds rate rise rapidly to fight inflation, reported Lisa Beilfuss of Barron’s. Investors recalibrated their expectations and by the end of the week the probability of a 0.50 rate increase in March was at 94 percent, according to the CME FedWatch Tool.
Flattening of the U.S. Treasury yield curve. Expectations for more aggressive Fed actions rolled through bond markets last week. The yield on benchmark 10-year U.S. Treasuries rose above 2.0 percent, before finishing the week at 2.0 percent. The yield curve flattened as 2-year Treasury yields rose more sharply, finishing the week at 1.5 percent.
Escalating geopolitical tensions. Then again, the culprit behind U.S. stock market performance last week could be expectations that Russia will invade Ukraine and start a war.
“Investors can’t blame rising prices for Friday’s plunge. Markets were poised to end the week higher, despite a hotter-than-hoped-for inflation reading on Thursday…Escalating geopolitical tension was the first problem Friday. Both the United Kingdom and the U.S. suggested that Russia could soon invade Ukraine and advised their citizens to leave the country… the news injected a rush of uncertainty into the market. And investors really hate uncertainty.”
-Al Root of Barron’s.
Declining consumer sentiment, especially among the wealthy. Consumer sentiment dropped 8.2 percent from January to February, reaching the lowest level in a decade. Notably, “The entire February decline was among households with incomes of $100,000 or more; their Sentiment Index fell by 16.1% from last month, and 27.5% from last year. The impact of higher inflation on personal finances was spontaneously cited by one-third of all consumers,” reported Surveys of Consumers Chief Economist Richard Curtain. It’s possible that consumer pessimism will slow demand for goods and that, in turn, could help lower inflation.
The reality is that there often is no single answer to explain why stock markets move up or down. Each of the above may have contributed to last week’s downturn. There is currently tremendous uncertainty about the potential impact of Fed policy changes, war in Europe, and other issues. As a result, it’s possible markets will remain volatile in the weeks ahead.
|Data as of 2/11/22||1-Week||YTD||1-Year||3-Year||5-Year||10-Year|
|Standard & Poor’s 500 (Domestic Stocks)||1.8%||-7.3%||15.8%||17.7%||13.7%||12.6%|
|Dow Jones Global ex-U.S.||1.4||-1.9||-2.1||8.2||5.8||3.9|
|10-year Treasury Note (Yield Only)||2.0||NA||1.2||2.7||2.4||2.0|
|Gold (per ounce)||1.5||0.6||-0.5||11.9||8.4||0.6|
|Bloomberg Commodity Index||0.3||10.8||31.7||11.3||4.4||-2.8|
The nature cure. When you were a kid, your parents probably told you to go outside and play. Your mom and dad may have just wanted to get you out from underfoot but, as it turns out, going outside is good for your mental and physical health.
In 2019, Mathew White of the European Centre for Environment and Human Health and his colleagues published an article in Nature. Their research found that people who spend more than two hours a week in nature “had consistently higher levels of both health and well-being” than those who spent less time in nature. The benefits of nature appear to max out at four hours.
Jason Goldman of Scientific American reported, “The two-hour benchmark applied to men and women, to older and younger folks, to people from different ethnic backgrounds, occupational groups, socioeconomic levels and so on. Even people with long-term illnesses or disabilities benefited from time spent in nature—as long as it was at least 120 minutes per week.”
So now that you’re an adult, your doctor may tell you to go outside and play.
A non-profit organization, called Park Rx America – Nature Prescribed, encourages doctors “to decrease the burden of chronic disease, increase health and happiness, and foster environmental stewardship” by prescribing nature during healthcare exams. The organization helps doctors identify parks in their patients’ neighborhoods and provides educational materials.
Canada is taking things a step further. Physicians can prescribe an “Adult Parks Canada Discovery Pass,” which gives their patients free access to 80 national parks, historic sites, and marine conservation areas, reported Andy Corbley of the Good News Network.
Even if you don’t have a free pass, it’s a good idea to go outside and play!
John Klevens, CFP®
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Securities offered through Securities America, Inc., Member FINRA/SIPC. Financial Advice & Investment Advisory Services offered through PFG Advisors LLC, a Registered Investment Advisor (RIA). Klevens Capital Management, PFG Advisors LLC, and Securities America, Inc. are separate entities.
. Portions of this newsletter have been prepared by Peak Advisor
* These views are those of Carson Coaching, and not the presenting Representative, the Representative’s Broker/Dealer, or Registered Investment Advisor, and should not be construed as investment advice.
* This newsletter was prepared by Carson Coaching. Carson Coaching is not affiliated with the named firm or broker/dealer.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* The risk of loss in trading commodities and futures can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of leverage is often obtainable in commodity trading and can work against you as well as for you. The use of leverage can lead to large losses as well as gains.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
* Consult your financial professional before making any investment decision.