When a financial professional provides investment advice, one of two different standards applies: 1. the recommendation is “suitable” for the client; or 2. the recommendation is the in client’s best interest. To the layman, the difference in these two statements may not seem like much, but to lawyers and regulators, there is a world of […]
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Ho Hum Reaction to Earnings
The earnings per share growth rate for companies reporting to date has been 27.3%, lifting the blended growth estimate for all S&P 500 companies to 25% from the original estimate of 18%. In response, the financial news headline generators are cranking out a parade of potential threats which might be holding stocks back or worse, […]
Read MoreImpact Investing
DEAR TRUST OFFICER: What is this “impact” investing I’ve been hearing about? Can trust assets be invested for social impact? — SEEKING SOCIAL JUSTICE DEAR SEEKING SOCIAL JUSTICE: There is no simple definition of “impact” investing. One writer called it “a movement that aims to force social change by minimizing or eliminating investors’ exposure to […]
Read MoreEarnings, Prices, and Rates
The estimate for corporate earnings growth for the first quarter of this year now stands at 21%, up from 18% at the beginning of April. Although slightly lower for the week, stock prices in the month of April have responded positively. As of Friday, April month-to-date increases in the indices have been 1.1% for the […]
Read MoreTaxes and Living Trusts
Dear Trust Officer: How much can I save on my income taxes if I put my investments into a living trust? — Looking for Loopholes Dear Looking for Loopholes: Nothing. A revocable living trust that a grantor sets up to manage his or her wealth provides no income tax advantages. The trust’s income and capital […]
Read MoreEarnings Season Continues
Stocks were lower in the final two days of trading but still managed a small gain for the week, buoyed by the positive start to earnings season. Reports, while positive, have so far been in line with the positive expectations investors had built up going into the season. Market activity will again be influenced by […]
Read MoreEstate Plan Essentials
A surprising number of people have not yet attended to their estate planning. Perhaps this is because estate planning has become so much more complicated in recent years, even though the burden of taxes at death has been in decline. Estate planning now usually covers medical and financial decisions before the end of life, as […]
Read MoreSizing Up the Corporate Tax Cuts
Stock indexes continued to hold above the recent correction’s lows last week as the first quarter earnings reports began to trickle in. The season will shift into higher gear this week as companies like Netflix, Bank of America, Bristol-Meyers Squib, Merck, Honeywell and Schlumberger report, not only their revenue and earnings for the quarter just […]
Read MoreMarket Volatility Makes a Comeback
For investors, 2017 was an unusually calm year. The S&P 500 stock index never changed by 2% in a single day, either up or down. There were only eight 1% days all year. 2018 is shaping up to be a very different story. CNNMoneyInvest reports that, in the first quarter, we’ve already had six 2% […]
Read More2018 First Quarter Earnings Season Begins
Market prices constantly adjust to new information. Later this week we will begin receiving new, meaningful information as first quarter corporate earnings begin to trickle in. Reporting will be in full swing next week and continue through the month. We will soon be able to update the “E” in P/E multiples. Expectations are for S&P […]
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