Stock prices continued to get a lift from the positives of slowing inflation, a supportive Fed, and continued corporate earnings growth. Interest rates, such as the 5-year Treasury yield, hit a one-year low ahead of the Fed cut, but have since rebounded towards the middle of a two-year range. As the Fed continues to cut rates, returns on cash in money market funds will fall as well.
The third quarter ended with a new closing high for the S&P 500, which is the fourth quarter in a row the index closed at, or very close to, a new high. The Federal Reserve dominated financial headlines and bond market trading activity in Q3. Stock and bond returns have been strong over the past 3, 6, and 12 months; we expect more modest, but generally positive, returns over the next several quarters.
There is a new reporting requirement for businesses starting in 2024. Newly formed corporations, limited liability companies (LLCs), limited partnerships, and other entities that file formation papers with a state’s Secretary of State’s office (or similar government agency) must file a Beneficial Ownership Information (BOI) report with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) providing specified information regarding the entity’s “beneficial owners.”
Stock prices moved higher and bond yields moved lower in anticipation of the first rate cut from the Federal Reserve in over four years. The S&P 500 hit another new high after the Federal Reserve announced a 0.50% interest rate cut.
As we approach Fall and start thinking about year-end planning, we thought it would be a great time to revisit some of our timeless financial planning tips and ideas from our newsletters over the past few years.
The S&P 500 had its second 5% pullback of the year to start the month of August, but the index rebounded to have a small gain by the middle of the month. Bond yields and mortgage rates recently hit 1-year lows. Expectations for a Fed cut in mid-September have been solidified, with the only argument being will it be 0.25% or 0.50% to start this easing cycle?
With the recent news of the National Public Data security breech, Buckingham Advisors wants to take this time to remind everyone of some best practices to protect their identity.
The Tax Cut and Jobs Act (TCJA) was passed in 2017 and made significant changes to the Tax Code. The changes were not permanent and most tax provisions sunset at the end of 2025. Absent additional legislation, beginning in 2026, the tax law will revert to the way it was before the TCJA passed.
The S&P 500 declined 2% last week and sold off over 3% at the open this morning. As of this writing, the stock market is about 8% below recent all-time highs reached on July 16th and is back to a level that was a new high earlier this year and at a level last seen just three months ago.
The Federal Reserve will have a rate announcement on July 31st, but no change is expected until mid-September. The S&P 500 hit new highs in July, but as of this writing, the index had a small loss for the month; there was quite a bit of rotation beneath the surface of the stock market. Bond yields remain attractive, but Fed cuts may change how cash needs to be managed.