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

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. It 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. Lastly, the episode references the Bloomberg Barclays U.S. 20+ Year Treasury Index, which is an index which measures the performance of U.S. dollar-denominated, fixed-rate, nominal debt issued by the U.S. Treasury with 20 years to maturity or more. An index is unmanaged and not available for direct investment.

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

The economic impact of COVID-19 has created high unemployment and volatility in the employment market with many leaving previous jobs and starting anew at a different employer. A new job presents the chance to accelerate your retirement savings strategy and the following describes three ways to consider.

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

Show Notes:

The following are important footnotes from this episode:

1 Bureau of Labor Statistics, “Economic News Release: Employee Tenure Summary,” September 20, 2018, https://www.bls.gov/news.release/tenure.nr0.htm

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

 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. 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.

This Flash 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%. It also 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. An index is unmanaged and not available for direct investment.

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

In this episode I am joined by fellow B|O|S Principal Dave Campbell to tackle four questions about deficits. First, what are deficits? Second, what's B|O|S’ opinion, do deficits even matter? Third, why do deficits matter to investors? Fourth and finally, what are we doing about it at B|O|S?

Show Notes:

Important Disclosures: bosinvest.com/disclosures.

The following links are included in the transcript below and provide context to aspects of the episode’s conversation.

“Federal Reserve should embrace more pain for good of the economy”, San Francisco Chronicle Op-Ed, Dave Campbell, Dec. 16, 2017.

“Trust”, Dave Campbell, May 22, 2018.

“Do Deficits Matter?”, Dave Campbell, November 11, 2019.

“The Federal Budget in 2019: An Infographic”, Congressional Budget Office, April 15, 2020.

“Federal Debt: A Primer”, Congressional Budget Office, March 12, 2020.

“America's Fiscal Future: Federal Debt”, U.S. Government Accountability Office.

“The 2020 OASDI Trustees Report”, Social Security Administration, April 22, 2020.

“2019 Medicare Trustees Report”, April 22, 2019.

“State and Local Government Pension Funding Status, 2002 – 2017”, Board of Governors of the Federal Reserve System, December 20, 2019.

Everett Dirksen, “A billion dollars here…”, Forbes.

“Historical Debt Outstanding - Annual 2000 – 2019”, Treasury Direct.

“Velocity of M2 Money Stock”, Federal Reserve Bank of St Louis Economic Research.

“About the Fed”, Board of Governors of the Federal Reserve System.

“United States Fed Funds Rate 1971-2020 Data | 2021-2022 Forecast”, Trading Economics.

“Powell Has Become the Fed’s Dr. Feelgood”, James Grant, Wall Street Journal, June 28, 2020.

“A Decade of Debt”, Carmen M. Reinhart & Kenneth S. Rogoff, National Bureau Of Economic Research, February 2011.

“Japan General Government Gross Debt to GDP 1980-2019 Data | 2020-2022 Forecast”, Trading Economics.

Tax Cuts and Jobs Act bill summary, U.S Congress.

“There Are No Libertarians in an Epidemic”, Peter Nicholas, The Atlantic, March 10, 2020.

“Labor Force Statistics from the Current Population Survey”, U.S. Bureau of Labor Statistics.

Saving for college can be a daunting task for any family. Fortunately, there are several tax-advantaged savings vehicles available to help like Section 529 plans. 529 college savings plans offer tax-free growth, donor control, and hassle-free administration. Owners of 529 plans benefit from tax-free growth by using the plan’s funds for qualified education expenses such as tuition, fees, books, and room and board. Today’s episode shares two ways that the SECURE Act has enhanced the benefits of 529 college savings plans.

Show Notes:

The following are important footnotes from this episode:

1 Please note that the state of California has not adopted this federal change under the TCJA. Using 529 plan funds for this purpose will result in California income tax and a 2.5% penalty on the earnings portion of the withdrawal.

2 It’s important to consult your CPA to understand all tax implications and potential penalties related to the use of 529 plan funds.

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

Our weekly updates on the markets and economy released most Wednesdays. Important disclosures: https://www.bosinvest.com/disclosures/

Stocks surged higher in the second quarter of 2020, a rally all the more remarkable given the almost total absence of reassuring economic news. Just as the speed of the decline in the stock market in the first quarter tested historical precedent, second quarter gains were equally worthy of the history books.

Show Notes:

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

The following are important footnotes from this episode:

[1] References to the S&P 500 refer to the S&P 500 Total Return 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 index includes the reinvestment of dividends. An index is unmanaged and not available for direct investment.

2 Source: Bloomberg.

3 ‘S&P 500 Index - 90 Year Historical Chart’; https://www.macrotrends.net/2324/sp-500-historical-chart-data

4 JPMorgan Guide to Markets, June 30, 2020, page 25.

5 Russell 1000 Value Index: A market capitalization-weighted index composed of constituents in the Russell 1000 Index with low price to book ratios and lower forecasted growth rates. An index is unmanaged and not available for direct investment.

6 Russell 2000 Index: 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.

7 MSCI EAFE Index: A market capitalization-weighted index that captures large and midcap companies in developed countries around the world, excluding the U.S. and Canada. An index is unmanaged and not available for direct investment.

8 Source: MSCI. Return shown for China is the return of the MSCI China Index for the first two quarters of 2020. The MSCI China Index is an index of large and mid-cap companies domiciled in China and covers about 85% of the China equity universe. An index is unmanaged and not available for direct investment.

9 Bloomberg Barclays US Aggregate Bond Index: 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. An index is unmanaged and not available for direct investment.

10 Bloomberg Barclays Municipal Bond Index: An Index that covers the USD-denominated long-term tax exempt bond market. The index includes state and local general obligation bonds, revenue bonds, insured and prerefunded bonds. An index is unmanaged and not available for direct investment. 

Signed into law on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act, known as the CARES Act, provides economic relief to individuals and businesses negatively impacted by the coronavirus pandemic. While the bill contains provisions relating to retirement accounts and distributions, it also covers a variety of other provisions beneficial to individuals and small businesses. Today’s episode provides examples of how individual and small business tax rates can stand to benefit from provisions within the CARES Act.

The following are important footnotes from this episode:

*1 The IRS’s list of qualifying medical and dental expenses can be found at: https://www.irs.gov/taxtopics/tc502.