Dynasty Trusts are a powerful tool in estate planning for transferring wealth across generations. However, Congress is considering extensive revisions to the tax laws that govern these trusts and, as a result, their days may be numbered.
September lived up to its reputation as a bad month for stocks as equites endured their worst month of the year so far. All four of the leading U.S. equity market indexes posted losses in September, as concerns about supply chains, inflation, and the Chinese property market took their collective toll.
Tuesday marked the last trading day of August, and the major averages posted solid gains for the period. In fact, the S&P 500 recorded its seventh-straight winning month of gains, which amounts to the longest winning streak since a 10-month run ending in December 2017. The equity market gains have come in the face of resurgent Covid-19 cases, Hurricane Ida, and the abrupt end to America’s involvement in Afghanistan. The apparent reason: second-quarter corporate earnings reports have surprised to the upside at a record clip.
The high yield bond spread is considered by many to be one of the best tools investors can use to assess both current and future market conditions. Although you shouldn’t use this indicator in isolation, it’s one more reason to consider erring on the side of a defensive allocation to American shares.
Inflation-indexed Treasuries provide investors with an effective way to hedge interest rate risk, and are a powerful valuable tool for customizing the design and management of fixed-income portfolios.
July was a good month for investors in diversified portfolios, as both stock and bond prices registered strong gains. However, a sharp rise in the inflation rate and shifting Fed plans could signal future challenges.