Get A Jump On Tax Planning
/Hi everyone,
I want to make a request. If you know someone who could benefit from our service and expertise, we would appreciate referrals you have to potential clients. We want to add some new clients over the next year, but as always, want to make sure it is a mutual fit as well. Thank you in advance!
2019 Tax Planning: Assuming you filed before today, tax season is over. For most of you, taxes are something you deal with and then ignore for 11 months until it is time to file again. However, now is the perfect time to get a jump on tax planning for 2019, particularly given the significant tax law changes that went into effect. (If you prepped and filed your own taxes then you know what I’m talking about because the Form 1040 alone has a very different look than it did under the old tax code.)
Josh is writing a post on some tax tips for 2019, which we will post sometime next week. If you would like to discuss measures you can take to be more tax-efficient in 2019, let us know.
In The Market...
The S&P 500 gained +0.5% last week. Let's look under the hood:
(price data via stockcharts.com)
Stocks rose for the third-straight week, finishing with a nice jump on Friday. The S&P 500 closed above 2,900 and is now just 1% below its previous record high from Sept. 2018. It was a pretty quiet week considering that stocks are approaching all-time highs.
The following weekly chart of the S&P 500 illustrates how far stock prices have rallied back to get to where they are. There are a couple things I want to highlight, starting with just the price movement of the index. Take a look:
(chart created via stockcharts.com)
Notice how the S&P 500 has clawed back to the previous high. If you look at the smaller chart above it, that blue line reflects the increasing number of stock prices that are above their respective 200-day moving averages. Currently, 73% are above, which bodes well for the longer-term outlook because it shows that the overall market is rising as a whole (rather than it being driven by a few areas).
The S&P is so close to its previous high though that I suspect we may see some stagnation over the next few weeks. Then again, I thought volatility would pick up in March and we really didn’t see too much of that.
Technology still looks like the strongest sector, which is reflected in our portfolio allocations. We added to our Cloud-Computing Tech fund (SKYY) this past week and continue to own a Tech-heavy index fund (SPLG) as well as a Semiconductor fund (XSD) in most accounts.
On the bond side we added a Long-Term Treasury fund (SPTL) to many accounts. Despite the late-week slide I think the Treasury market remains appealing in the weeks ahead.
In Our Portfolios...
What's New With Us?
This past weekend was great. We are almost done with a yard project we have been planning for a long time, Tiger won the Masters and Game of Thrones finally returned after a 2-year wait.
Have a great week!
Brian E Betz, CFP®
Principal