Q: How did the Treasury Market react this week during debt ceiling negotiations and what can it tell investors?
A: One interpretation is that the risk of default is subsiding as interest rates have recently dropped.
Q: What areas of the economy have seen the greatest demand increase for oil in 2023?
A: Global air travel is up 52% from March 2022 to March 2023.
Q: With the recent 10-year withdrawal requirement on IRA’s, how could heirs minimize taxes and preserve the legacy?
A: Stay tuned for the formula during today’s Profit Report.
J.P.Morgan Guide to the Markets 2nd Quarter 2023, pg. 22 (04/30/2023)
– Courtesy of J.P.Morgan Asset Management
C.B.O.E. Short Term Interest Rate Index, 10 Year Treasury Note Yield Index & 30 Year Treasury Bond Yield Index (12/30/2022 – 06/02/2023)
– Courtesy of Bloomberg LP
Standard & Poor’s CoreLogic Case-Shiller Dallas Home Price Index, Non Seasonally Adjusted (06/30/2018 – 03/31/2023)
– Courtesy of Bloomberg LP
Dow Jones Industrial Average (12/30/2022 – 06/02/2023)
– Courtesy of Bloomberg LP
Evolution of Atlanta Fed GDPNow Real GDP Estimate for 2023 – Q2 (06/01/2023)
– Courtesy of The Atlanta Federal Reserve
Standard & Poor’s CoreLogic Case-Shiller U.S. National Home Price Index, Non Seasonally Adjusted (06/30/2018 – 03/31/2023)
– Courtesy of Bloomberg LP
Headline Round Up
*Prices of North Texas Homes down 7% from June 2022, BUT Positive Year to Date. Home prices still down 1.5% since March 2022. Possible national trend?
*Quant Fund Buying Contributes to Relative Stock Market Calmness. Machines loading up on stocks while regular investors stay out?
*Carlos Slim Becomes the Latest Billionaire to Go Big on Oil!
*ConocoPhillips Buys the Rest of Canadian Project from TotalEnergies, SE for $3.3 Billion.
*Solar Power Investments Set to Overtake Oil Investments for First Time in History!
*Bad Behavior Driving U.S. Manufacturer Exit from China?
*Albemarle Becomes World’s Most Valuable Lithium Producer.
*Oil Price Bearishness Hits Pandemic Levels?
*Global Air Travel Up 52% from March 2022 to March 2023!
*Huge Discounts on New York City Office Buildings! Investment firm Blackstone takes a $500 million hit.
*Tesla Poised to Become King of Electric Vehicle (EV) Charging Stations in Deal with Ford.
*World’s First Battery Tanker?
*Artificial Intelligence (AI) Boom! Hedge funds using AI to speed up analysis and write code amidst chip shortages & Armageddon warnings?
*Soaring Investor Bets on Treasury Interest Rate Drop!
*Steelmaker Nucor, Inc. Hires Exxon to Capture Carbon?
*Retail Deflation? Macy’s Cuts Full Year Outlook for 2023.
*Hydraulic Fracking Technology Breakthroughs Could Double Oil from Shale Wells.
*Plaid, Inc. Leads Digital Transaction Platforms. Alex, is that blockchain too?
Profit Report
1. With the recent new 10-year withdrawal requirement on IRA’s, how will my heirs minimize taxes and preserve the legacy?
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Method for an Annual Distribution¹: Annual Distribution = Value – (Value/10-t)*
*t = Years from Start
*Value = Current Balance at Distribution
¹The material presented above is for informational purposes only. Any changes to your tax situation should be discussed with your chosen tax professional.
2. What are 3 of the biggest mistakes clients can make in retirement planning and how do we avoid them?
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Retiring too soon: Avocation Phase.
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Overfunding kids and grandkids during retirement: Set clear, defined boundaries and stick to them.
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Overspending: 80% of free cash flow leaves a 20% reinvestment rate.
