April 2024

“The best way to find yourself is to lose yourself in the service of others.” - Mahatma Gandhi

How much is $1,000,000? Sometimes it is great to rephrase things so that you can see them in a different light. It can be quite eye opening. One million seconds is 11 ½ days. What about a billion? That would be 11,574 days. That’s a lot. Big jump from a million. Consider that our national debt is in the trillions, and the annual deficit is over $1 trillion alone. What would that be in seconds? One trillion seconds is 11,574,074 days.

We are just wrapping up the bulk of tax season. There are always some stragglers, but by now most of us have paid our taxes. If you consider the current spending level of our government and the illustration above, it seems likely that regardless of the outcome of the fall election taxes will likely be going higher. We don’t seem to have the luxury of a government that knows how to tighten their own belts. I mention this as a heads up that you may want to take advantage of the current tax rates. We do not give tax advice. We do, however, try to point out strategies that may be tax advantageous to our clients. I see many trying to postpone capital gains on real estate or other assets. Unless you are postponing them until death, this may be the lowest capital gains rate you see for quite some time. It may be wise to pay the tax now while the rate is lower. Also, look at our current income tax rates and compare them to where they have been. The Trump tax cuts will likely expire next year, or you could see legislation to raise them much higher. Consider advancing that Roth conversion strategy or implementing other ideas while these rates are in place. While it is fresh on your mind, please send us or have your accountant send us a copy of your latest tax return. We usually ask for an updated copy every two or three years so we can analyze it for changes, update your goal plan, and point out strategies that may benefit you. Thanks in advance.

No pullbacks? As I write this in mid-April, we have gone over 105 days without so much as a 5% pullback on the market as measured by the S&P 500. Typically, we get one every 84 days. For that matter, we have not had a 10% correction in 105 days either. It is common that we get one on average at least once per year. We are seeing some market weakness lately, and I just point out the above to indicate that it may be nothing abnormal and is to be expected. Wearing my portfolio manager hat, I look forward to any type of pullback as an opportunity to add to some of the great companies we own for our clients. There is currently more than $6 trillion dollars in the United States parked in bank accounts, money markets and other short-term cash equivalents. Much of that money will likely also be looking for a pullback as an entry point to come into the stock market. Many people holding cash are feeling quite left behind by the swift resumption of a secular bull market.

Gold in garbage? In 2022, e-waste (electronic trash) worldwide contained 31 million metric tons of metals, of which 19 million were recovered and reused, according to IBD Weekly. While 60% of all metals in e-waste were recovered, just 20% of the precious metals in e-waste were reclaimed.

Gold has been in the news a lot lately as the commodity outpaces many of the actual miners. We are seeing long-term resistance lines breached. While I don’t want to comment on gold itself or speculate in that market, it is certainly worth noting and keeping an eye on. When commodities like gold and copper and even lumber increase in price that noticeably, they may be trying to tell us something. Is a weaker dollar ahead, is there some new worry out there, or is inflation getting out of control?

Sincerely,

Brien Krank
Financial Advisor, RJFS
Senior Portfolio Manager
Managing Partner – Collins and Krank

Hear me on the radio Wednesday mornings from 7:35am to 8:55am on 1100am The Flag and 970 WDAY.

Raymond James and its advisors do not offer tax advice. You should discuss any tax matters with the appropriate professional.

Opinions expressed are those of Brien Krank or of the author in the attached articles and not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. There is not guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance does not guarantee future results. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Individual investor’s results will vary. Raymond James is not affiliated with Nick Murray or First Trust.