Oops, They Did It Again! We imagine it went something like this, just before 2021 rang in: Analyst: Well that was a crazy year! 22 percent? Didn’t see that coming, with all this covid. Other Analyst: The S&P? It was up 18. Analyst: I meant my bonus. But yeah, 18 percent – wow. I’ll take it. I guessed only 8. Still better than your guess! 5, wasn’t it? Other analyst: Whatever. I got the same bonus. But seriously, the boss wants a prediction for next year. I mean, we really can’t go up more with all these variants popping …
We Have a New Employee!
Please welcome our new Director of Parental Sleeplessness, Quinn William Sylvia. In this picture, he’s either deep in thought, or taking an afternoon nap, much like Uncle John. Either way, he’s already in line for a promotion to CCO (Chief Cuteness Officer). If you know Bill, you may be a bit surprised. Yes, Quinn couldn’t wait to join the firm, crushed the interview process, and got here a few weeks early. Quinn, mom and dad are all doing great and everyone is healthy. There’s good in this world, and here’s proof. We hope this little symbol of hope brightens your …
Do Cliffs Follow Peaks?
How often have you said, “How much higher can it go”? Well, we have an answer… Surprised? There’s no cliff at all. Quite the opposite in fact. And “How much higher can it go”? The answer has always been, “Much”. The returns after new highs are just about the same as returns after any period. It makes sense. The S&P 500 has averaged 10% since 1926. If stocks went down every time they went up, returns would be closer to zero than 10%. Reaching record highs regularly is the outcome one would expect. Cheers, John, Bill, Mark & Melanie
Proposed Tax Changes
The “American Families Plan” will be debated and finalized in the weeks to come. Here are the key proposed changes: New income tax brackets: New capital gains rates: 8% Net Investment Income Tax (NIIT): Certain high-income S-corporations will be subject to the NIIT, phased in, at thresholds of $400,000 for single filers and $500,000 for joint filers. New surtax: 3% will be added to the top income tax rate for those earning over $5 million, making the true new top rate 42.6% QBI: the maximum allowable Qualified Business Income deduction will be capped between $400,000 and $500,000. Back-door Roth Conversions: …