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. 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.
Throw the hot potato (stone). Science has finally answered the age-old question: What stones are best for skipping at the beach? The answer is: potato-shaped ones. While it’s true that a flat stone will skip more times, a heavier stone will get more height, and therefore looks way cooler as it travels. This finding might seem trivial, but it turns out that understanding stone-skimming dynamics could also help us learn more about phenomena like how asteroids move through space. In fact, mathematicians made the discovery while working to improve air travel safety.
Find your ancestors with PBS: Actor Edward Norton found out that Pocahontas was his 12th great grandma on the PBS show Finding Your Roots. In 1613 Pocahontas was kidnapped and married to John Rolfe, an English colonist, in 1614. And then, just 394 years later, Norton’s Hulk movie flopped.
Stat: As a Netflix software engineer in California, you can expect to make somewhere between $90,000 and…$900,000, according to a job posting. As of Jan. 1, California companies are required to post salary ranges for open positions, but like we saw when New York City enacted a similar law last year, some employers are making somewhat of a joke of it. Still, since California is home to so many influential tech companies, the law is giving us an unprecedented look at the salaries of people who work for Apple, Tesla, Meta, Google, and more.
Weekly Focus – Think About It
“If you think in terms of a year, plant a seed; if in terms of ten years, plant trees; if in terms of 100 years, teach the people.”
It’s being called the “Goldilocks” report.
Last Friday, we learned that demand for workers in the United States remained strong in 2022. The unemployment rate dropped to 3.5% in December. (It was 3.7% in November.) That brought U.S. unemployment back to where it was before the pandemic – at the lowest level in more than 50 years, reported Megan Cassella of Barron’s.
“Hopes the Federal Reserve can tame inflation without widespread job losses mounted Friday after a government report showed robust hiring and a historically low unemployment rate paired with a cooling in wage growth. In some respects, the December jobs report offered a best-case scenario for the Fed — Americans keep their jobs but inflationary pressures of earnings are easing — giving policymakers room to slow the pace of interest-rate hikes,” reported Reade Pickert of Bloomberg
Financial markets responded enthusiastically, making Friday the best day for U.S. stocks in more than a month. The Standard & Poor’s 500 Index, Dow Jones Industrial Average, and Nasdaq Composite Index all gained more than 2% on Friday, reported Bloomberg. The bond market rallied, too. Yields on U.S. Treasuries dropped lower across most maturities.
It’s important to note that not all companies were hiring in December. Thursday’s private payrolls report showed 235,000 jobs were created in December despite larger companies cutting more than 150,000 jobs. The drivers of jobs growth in the U.S. right now are small- and medium-sized businesses, which added enough jobs to offset layoffs by larger employers, reported Bloomberg
Large technology firms are among the companies laying off workers. Many borrowed and spent significant amounts of money to grow during the pandemic when demand for tech products and services was high. However, consumer demand has diminished, and large tech firms have been forced to reevaluate. Weak performance among tech stocks is one reason 2022 was a dismal year for the Nasdaq Composite Index, reported Tae Kim of Barron’s.
Last week, major U.S. stock indices moved higher and the yield on the 10-year U.S. Treasury moved lower.
|Data as of 1/6/23||1-Week||YTD||1-Year||3-Year||5-Year||10-Year|
|Standard & Poor’s 500 (Domestic Stocks)||1.5%||1.5%||-17.1%||6.3%||7.2%||10.3%|
|Dow Jones Global ex-U.S.||2.6||2.6||-15.9||-1.2||-1.5||1.7|
|10-year Treasury Note (Yield Only)||3.6||NA||1.7||1.8||2.5||1.9|
|Gold (per ounce)||2.2||2.2||3.5||5.6||7.0||1.2|
|Bloomberg Commodity Index||-4.2||-4.2||7.3||9.8||4.3||-2.4|
What Happens in Vegas Doesn’t Always Stay in Vegas.This month, Las Vegas hosted the Consumer Electronics Show, also known as CES. It’s where everyone goes to gawk at the latest technology innovations. Some of the wacky and delightful products will arrive in stores this year while others are aspirational. Here is a glimpse at what the future may hold in transportation:
Jetson-style flying vehicles. It seems that a flying car may soon be approved by the Federal Aviation Administration. Imagine a large SUV with wings that are tipped with propellers. The vehicle holds four people, runs on electric batteries, has a small gas engine (just in case), and can hover into a conventional parking space. The company that builds this space-age vehicle plans to start a ride-sharing service in 2026, reported Bree Fowler of CNet.
A smart baby stroller. It can’t tell you why the baby is crying or change a diaper, but a baby stroller equipped with artificial intelligence can make it easier to go up hill and stay in control when going downhill. It also will move on its own when your child wants to walk instead of ride, reported Popular Science.
Your new best friend. Fans of Herbie, The Love Bug and Knight Rider may be intrigued by the prospect of sentient vehicles. DEE, short for Digital Emotional Experience, is a futuristic mid-sized sedan intended to strengthen the bond between humans and autos. The model at CES featured “a digital assistant, color-changing technology and an augmented-reality windshield,” reported Nelson Aguilar of CNet.
Other notable transportation innovations included an electric pickup truck with “shadow mode” that allows it to follow its driver around, a dashboard security camera that records what’s happening inside and outside of the vehicle, and a surround sound system that makes you feel as though you’re at a concert.
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.