The current conditions of a strong upward swing in stock prices and very low borrowing rates are a dangerous mix for investors who don’t understand that market trends can reverse in a heartbeat and that they most likely won’t see the reversal coming. By assuming too much risk, these investors may be violating the number one rule for successful long-term investing: “Make sure you’re around for the long-term.”

Show Notes:

This episode referenced the S&P 500 Index, which is a market capitalization-weighted index that generally contains the 500 largest publicly traded stocks in the U.S., subject to certain restrictions. The episode also referenced the Russell 2000 Index, which is a market capitalization-weighted index of U.S. small cap stocks that consists of the 2,000 smallest publicly traded stocks in the Russell 3000 Index. Additionally, the episode referenced the MSCI ACWI ex US Index, which is a market capitalization-weighted index that captures large and midcap companies in developed and emerging market countries excluding the U.S. Further, the episode referenced the Bloomberg Barclays U.S. Aggregate Bond Index, which is a broad-based bond index that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government agency bonds, corporate bonds and securitized fixed income securities. Finally, the episode also referenced the Bloomberg Barclays 1-5 Year Gov/Credit Bond Index, which is a broad-based bond index that measures the non-securitized component of the US Aggregate Bond Index and targets bonds with maturities between 1 and 5 years. An index is unmanaged and not available for direct investment.

6. There is some debate as to whether this quote should be attributed to Benjamin Graham, Warren Buffett’s mentor, rather than Buffett himself. Graham provided the metaphorical framework for this observation in his 1934 book, “Security Analysis,” and Buffett has graciously attributed the quote to Graham even though it doesn’t appear in any of Graham’s works.

The complete Quarterly Summary is available on the B|O|S website here.

For important disclosures, please see bosinvest.com/disclosures.

Our weekly updates on the markets and economy released most Wednesdays.

Show Notes:

This Flash Briefing referenced the S&P 500 Index, which is a market capitalization-weighted index that generally contains the 500 largest publicly traded stocks in the U.S., subject to certain restrictions. The briefing also referenced the Russell 2000 Index, which is a market capitalization-weighted index of U.S. small cap stocks that consists of the 2,000 smallest publicly traded stocks in the Russell 3000 Index. Further, the briefing referenced the NASDAQ 100 Index, which is a modified market capitalization-weighted index of the 100 largest and most active non-financial domestic and international issues listed on the NASDAQ exchange. No security may have a weighting of greater than 24%. Finally, the briefing referenced the MSCI ACWI ex US Index, which is a market capitalization-weighted index that captures large and midcap companies in developed and emerging market countries excluding the U.S. An index is unmanaged and not available for direct investment.

For important disclosures, please see bosinvest.com/disclosures.

Our weekly updates on the markets and economy released most Wednesdays.

Show Notes:

This Flash Briefing referenced the S&P 500 Index, which is a market capitalization-weighted index that generally contains the 500 largest publicly traded stocks in the U.S., subject to certain restrictions. Additionally, the briefing referenced the MSCI ACWI ex US Index, which is a market capitalization-weighted index that captures large and midcap companies in developed and emerging market countries excluding the U.S. further, it referenced the Bloomberg Barclays U.S. Aggregate Bond Index, which is a broad-based bond index that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government agency bonds, corporate bonds and securitized fixed income securities. Lastly, it referenced the Bloomberg Barclays 1-5 Year Gov/Credit Bond Index, which is a broad-based bond index that measures the non-securitized component of the US Aggregate Bond Index and targets bonds with maturities between 1 and 5 years. An index is unmanaged and not available for direct investment.

For important disclosures, please see bosinvest.com/disclosures.

Our weekly updates on the markets and economy released most Wednesdays.

Show Notes:

This Flash Briefing referenced the S&P 500 Index, which is a market capitalization-weighted index that generally contains the 500 largest publicly traded stocks in the U.S., subject to certain restrictions. Additionally, the briefing referenced the MSCI Emerging Markets Index, which is a market capitalization-weighted index that captures large and midcap companies in emerging market countries around the world. Lastly, this briefing referenced the MSCI Turkey Index, which is a free float-adjusted, market capitalization-weighted index designed to measure the performance of large and midcap equity securities in the equity market of Turkey. An index is unmanaged and not available for direct investment.

For important disclosures, please see bosinvest.com/disclosures.

Our weekly updates on the markets and economy released most Wednesdays.

Show Notes:

This Flash Briefing referenced the S&P 500 Index, which is a market capitalization-weighted index that generally contains the 500 largest publicly traded stocks in the U.S., subject to certain restrictions. Additionally, the briefing referenced the Russell 2000 Index, which is a market capitalization-weighted index of U.S. small cap stocks that consists of the 2,000 smallest publicly traded stocks in the Russell 3000 Index. An index is unmanaged and not available for direct investment.

For important disclosures, please see bosinvest.com/disclosures.

Given the 2026 sunset of the higher exemption as well as the increased likelihood of a rollback of the gift and estate exemption amount during the Biden administration, some taxpayers are looking for ways to use the increased exemption amount before it is lost. However, some married couples are concerned about gifting strategies that involve the loss of control of assets during their lifetime and may be unsure about whether they will need the gifted assets in the future. For those with such concerns, a spousal lifetime access trust (SLAT) may be a good technique to consider.

Show Notes:

Important Disclosures: https://www.bosinvest.com/disclosures.

A new year often begins with a handful of resolutions for increased exercise, eating better, sleeping more, and improving other personal habits. While there may be a great deal of focus on your physical health, what about your financial health? The start of a new year is also a great time to review your finances, make necessary updates to important documents, and reset financial goals. These 10 relatively simple steps will give you a fresh start on your finances for 2021 and beyond. 

Show Notes:

Important Disclosures: https://www.bosinvest.com/disclosures.

Our weekly updates on the markets and economy released most Wednesdays.

Show Notes:

This Flash Briefing referenced the S&P 500 Index, which is a market capitalization-weighted index that generally contains the 500 largest publicly traded stocks in the U.S., subject to certain restrictions. Additionally, the briefing referenced the Russell 2000 Index, which is a market capitalization-weighted index of U.S. small cap stocks that consists of the 2,000 smallest publicly traded stocks in the Russell 3000 Index. The briefing also referenced the Russell 3000 Value Index, which is a market capitalization-weighted index composed of constituents in the Russell 3000 Index with low price to book ratios and low forecasted growth rates. Further, the briefing referenced the Russell 3000 Growth Index, which is a market capitalization-weighted index composed of constituents in the Russell 3000 Index with higher price to book ratios and higher forecasted growth rates. The briefing also referenced the Bloomberg Barclays U.S. Aggregate Bond Index, which is a broad-based bond index that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government agency bonds, corporate bonds and securitized fixed income securities. Additionally, the briefing referenced the Bloomberg Barclays 1-5 Gov/Corp Index, which is a broad-based bond index that measures the non-securitized component of the US Aggregate Bond Index and targets bonds with maturities between 1 and 5 years. Finally, the briefing referenced the Dow Jones Industrial Average, which is a price-weighted index that tracks 30 large, publicly traded U.S. companies trading on the New York Stock Exchange and the NASDAQ. An index is unmanaged and not available for direct investment.

For important disclosures, please see bosinvest.com/disclosures.

With Democratic victories for the two U.S. Senate seats in Georgia, the Democrats now have control of the U.S. House of Representatives, Senate, and the presidency. With Democratic leadership comes the likelihood of significant changes to current individual income, corporate, gift and estate tax laws. However, given the slim majorities of the Democrats in the House and Senate, aggressive tax policy changes may still face an uphill battle. A review of the legislative process for passing federal tax law may help us better understand how and when proposed tax changes may occur.

Show Notes:

Important Disclosures: https://www.bosinvest.com/disclosures.
Diagram of How Federal Tax Laws Are Passed: https://www.bosinvest.com/wp-content/uploads/2021/02/How-Do-Federal-Tax-Laws-Get-Passed.png

[1] The Byrd Rule defines a provision to be "extraneous"—and therefore ineligible for reconciliation—in six cases: 1) It does not have a budgetary effect; 2) It has a budgetary effect, but the effect is not what the budget resolution called for; 3) It’s outside the jurisdiction of the committee recommending it; 4) It does have a budget effect, but a “merely incidental” to the nonbudgetary components of the provisions; 5) It increases the deficit beyond a certain number of years (usually a period of ten years); or 6) It is about Social Security.

Sources:

Wikipedia, “Reconciliation (United States Congress),” https://en.wikipedia.org/wiki/Reconciliation_(United_States_Congress)

Wikipedia, “Reconciliation (United States Congress): Byrd Rule,” https://en.wikipedia.org/wiki/Reconciliation_(United_States_Congress)#Byrd_Rule

Our weekly updates on the markets and economy released most Wednesdays.

Show Notes:

This Flash Briefing referenced the S&P 500 Index, which is a market capitalization-weighted index that generally contains the 500 largest publicly traded stocks in the U.S., subject to certain restrictions. Additionally, the briefing referenced the NASDAQ 100 Index, which is a modified market capitalization-weighted index of the 100 largest and most active non-financial domestic and international issues listed on the NASDAQ exchange. No security may have a weighting of greater than 24%. This briefing also referenced the Russell 3000 Value Index, which is a market capitalization-weighted index composed of constituents in the Russell 3000 Index with low price to book ratios and low forecasted growth rates. Further, the briefing referenced the Russell 3000 Growth Index, which is a market capitalization-weighted index composed of constituents in the Russell 3000 Index with higher price to book ratios and higher forecasted growth rates. Finally, the briefing referenced the S&P 500 Energy Index, which is a market capitalization-weighted index of companies in the S&P 500 Index that are classified in the Energy sector according to the Global Industry Classification Standard (GICS). An index is unmanaged and not available for direct investment.

For important disclosures, please see bosinvest.com/disclosures.