This is just a quick note about what's going on in the economy and what's going on in our office.
We had a busy week. We recorded our first podcast!
Called "Red Carpet Retirement" as a nod to our many entertainment industry clients, we hope to provide educational stories and specific strategies to help all listeners have the Red Carpet Retirement they deserve!
On a more technical note, we were helping our business owners file their 5500 retirement plan forms. Such plans can be amazing tax-saving strategies for business owners, so if you know of any who could benefit, please let us know. (There is also a great, less well-known tax tip at the bottom. Please pass this on too.)
In the financial world, some weeks are more important than others, and we just lived through a big one. Let's unpack each of the four key stats:
The Fed. As expected, the Fed bumped up short-term rates again at its July meeting. But the markets breathed a sigh of relief in reaction. Investors believe the Fed is getting a handle on inflation, which may mean slower rate increases.
Inflation. It feels like inflation is trending lower – check out gasoline prices. But the Fed's key inflation indicator, the personal consumption expenditures index, remained stubbornly high in June. Result? We're still getting mixed signals.
GDP. The latest report showed a second straight quarterly contraction. Two-quarters of negative growth would have been a recession by definition not long ago. Economists now look at more factors, such as jobs and hiring, before labeling an economy.
Company reports. They have been fantastic, with many companies checking in with better-than-expected results. In its July 29 update, FactSet reported that 73% of S&P 500 companies were surprised with earnings, and 66% were astonished by sales.
And finally that tax break for business owners...
Enjoy the final weeks of summer. We'll keep an eye on the markets.
Unpacking the Summer Economy
August 18, 2022