Weekly Market Insights: Plenty of Treats for Wall Street This Week

​Stocks overcame poor earnings results from some of America’s largest companies to post gains last week as investors cheered positive earnings surprises, easing inflation and a rebound in economic growth.
The Dow Jones Industrial Average rose 5.72%, while the Standard & Poor’s 500 advanced 3.95%. The Nasdaq Composite index added 2.24% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 4.89%.1,2,3

A “Spook-tacular” Week

Some mega-cap technology companies were under pressure last week on weak earnings and tepid fourth-quarter guidance. They reported multiple headwinds, including declining advertising revenues, loose expense control, and a slowdown in cloud growth. 

Meanwhile, positive earnings surprises from “old economy” companies powered markets higher. This market bifurcation was evident in the divergence in the performance of the Dow Industrials and the Nasdaq. The S&P 500 posted a substantial gain despite its disproportionate weighting of mega-cap stocks, which helped illustrate the power of the rally. Momentum accelerated into Friday, aided by an easing in inflation and a solid third-quarter Gross Domestic Product (GDP) report.

Economic Growth Exceeds Expectations

After two straight quarters of negative economic growth, the initial estimate of the third quarter’s GDP came in at a solid 2.6%, exceeding economists’ 2.3% estimate. The surprising economic performance was largely attributable to an increase in exports, which narrowed the trade deficit, a development that may not repeat going forward.4

Particularly encouraging was the personal consumption expenditure price index, a report used by the Fed to track inflation. It increased 4.2%, well below the 7.3% jump from a quarter ago.5

This Week: Key Economic Data

Tuesday: Institute for Supply Management (ISM) Manufacturing Index. Job Openings and Labor Turnover Survey (JOLTS).

Wednesday: Federal Open Market Committee (FOMC) Announcement. Automated Data Processing (ADP) Employment Report. 

Thursday: Jobless Claims. Factory Orders. Institute for Supply Management (ISM) Services Index.

Friday: Employment Situation.

Source: Econoday, October 28, 2022
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

This Week: Companies Reporting Earnings

Tuesday: Pfizer, Inc. (PFE), Eli Lilly & Company (LLY), Marathon Petroleum Corporation (MPC).

Wednesday: CVS Health Corporation (CVS), Qualcomm, Inc. (QCOM), Fortinet, Inc. (FTNT), Humana, Inc. (HUM), Cigna Corporation (CI), Booking Holdings, Inc. (BKNG), Prudential Financial, Inc. (PRU).

Thursday: Block, Inc. (SQ), PayPal Holdings, Inc. (PYPL), Amgen, Inc. (AMGN), ConocoPhillips (COP), Regeneron Pharmaceuticals, Inc. (REGN).

Friday: Dominion Energy, Inc. (D), EOG Resources, Inc. (EOG).

Source: Zacks, October 28, 2022
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

“We should all do something to right the wrongs that we see and not just complain about them.”
– Jacqueline Kennedy Onassis 

Using the IRS2Go App

Did you know that the IRS has an app that makes it easy to check some things off your tax to-do list? Using the app, you can:

  • Check your refund status. Your refund status is available within 24 hours after the IRS receives your e-filed return (or four weeks after receiving a paper return).

  • Access IRS Free File. Free File is a tax prep software for taxpayers whose 2021 total adjusted gross income was $73,000 or less.
  • Find payment options, including IRS Direct Pay which allows you to pay tax bills directly from your bank account.
  • Get tax help.
  • Stay up to date with updates from the IRS.

* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov6

Satisfy Your Sweet Tooth With Dates

Do you have a sweet tooth but want to limit the amount of refined sugar you eat? Dates are just the answer! These nutrient-rich powerhouses are sweet, succulent, and good for you!

Dates are high in fiber, potassium, magnesium, and Vitamin B6, among many other nutrients. In addition, dates are high in antioxidants and may promote brain health, bone health, and blood sugar control.

Dates are easy to add to your diet. Snack on them, add them to dishes as a natural sweetener or blend them in a smoothie. These nutritious and delicious treats are perfect for kicking cookies and cakes without giving up an indulgent taste.

Tip adapted Healthline, November 27, 20197

What is worn by the foot and often bought by the yard?

Last week’s riddle: They can run side by side for thousands of miles; they are made of steel. While they constantly touch the ground, they seldom meet or touch each other. What are they? Answer: Railroad tracks.

Cathedral Rock at twilight, Sedona, Arizona

Footnotes and Sources


1. The Wall Street Journal, October 28, 2022
2. The Wall Street Journal, October 28, 2022
3. The Wall Street Journal, October 28, 2022
4. CNBC, October 27, 2022
5. CNBC, October 27, 2022
6. IRS.gov, July 25, 2022
7. Healthline, November 27, 2019

 
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.

The World’s Chip Crisis

This is the most important article you will read this year.  It is the details behind what we wrote about in Tuesday’s email.  China wants Taiwan.  Not to “reunite with the motherland”, and all the other BS reasons they dream up. There is one reason, and only one.  China wants the TSCM foundry.

The chart below is very scary.  Look at the comparison between semiconductor production by country from 1990 to 2020.  43% comes from Taiwan and South Korea. These chips are used in  the production for everything from computers, cell phones, defense weaponry to cars. Wouldn’t be a problem except that China wants to invade Taiwan, and North Korea uses South Korea as a test site for nukes!!

Also, in the detail you will read the other scary stat: TSCM is responsible for 20% of all worldwide production and 92% of the advanced chips.  I just don’t understand why the White House, the defense intelligence agencies, and the S&P 500 companies don’t have a high level working relationship to forecast these highly important manufacturing glitches that put the national defense and security of Americans first.  Obviously, China does!  You don’t need furniture from Vietnam.  But life as you know it is OVER WITHOUT SEMICONDUCTOR CHIPS!

Market Update

Yesterday the RFS investment committee made the tough decision to sell  your “short” positions, SQQQ and SPXS.  So far it is working.  You’re probably wondering what has changed and why?  The S&P 500 index, our main benchmark, has put up 6 green bars out of 9 in the last 9 days.  Last Thursday we officially recorded a “crossover”.  You  likely remember what a crossover is from our prior emails; nonetheless, it is when one moving average “MA” crosses above or below another MA.  The  5 day MA crossed back over the 10 day MA, which is historically a positive “buy” signal.  Not a guarantee, but historically very accurate.  Simply put, the average of the last 5 days is now higher than the average of the last 10.

The “whys” are not easy.  I do not want to be accused of making a political statement, just reporting what is in all the news, including the  Washington Post,

Wall Street Journal , and the  NY Times.  Investors appear to be regaining confidence in the markets as we approach the mid-term elections, which is 2 weeks from today.  Putting aside a huge political or economic event, it appears the GOP will take control of both Houses of Congress.  President Biden’s approval rating is at an all time low, and he recently suggested he may not run for a 2nd term.  Investors and consumers alike are not happy with inflation, interest rates, food, and fuel prices.  As you scan and/or read the articles below, the residential real estate market is in a total collapse, as well as new home construction.  The 30 year  mortgage rate just hit 7%, more than doubling the cost of a mortgage, which was 2.5%,  20% down, last October.  Further interest rate increases are potentially in the near future  as the Federal Reserve tries to try to help quell inflation which will take another bite out of  your budget.  Further, most consumers cannot afford new or used car loans, and the auto industry is still suffering from two years of chip shortages.  In addition, Goldman Sachs reported yesterday that auto/truck loans are at a higher default rate than they were in July of 2009.  One of the articles below reports that real estate agents are leaving the business at a higher rate than in 2008.

The political environment is not great either.  President Xi of China just won reelection to a third term and consolidated his top 25 team with all staunch loyalists.  He even dismissed, or “retired”, his immediate predecessor.  Further, for the 1st time since 1947 there are no women on the top 25 team.  All of this is directly from the  New York Times.

Xi continues to have his eyes on Taiwan, where the big prize is the worlds largest semi-conductor foundry, TSMC.  The NYT further wrote that if Xi invades Taiwan and captures the foundry we will have a worldwide economic collapse.  A very good friend and client told me to buy and read, “The Avoidable War”, by Ken Rudd.  He is the former Foreign Secretary and Prime Minister of Australia.  Very scary stuff, as he knows what he is talking about.

And of course, Russia continues to wreak havoc in the Ukraine, and reducing many parts of the European economy to a standstill.

The realities of climate change aren’t helping either.  As in a historic drought has sent the Mississippi River level to record lows, plus the water level in Europe is so low that barges and tourist ships cannot pass from Budapest to Amsterdam.  Winter is coming and natural gas shortages  could leave millions of Europeans without heating fuel.

That is all for now.  We will continue to keep you posted.  As always, please call me or write me back, and thanks to the many already doing that.

Praying for a peaceful and prosperous end to this madness.

Home prices cooled at a record pace
https://www.cnbc.com/2022/10/25/home-prices-cooled-at-a-record-pace-in-august-sp-case-shiller-says.html?__source=androidappshare

50% of voters expect the economy will get worse in 2023, new NBC News poll says
https://www.cnbc.com/video/2022/10/24/50-percent-of-voters-expect-the-economy-will-get-worse-in-2023.html?__source=androidappshare

The fate of the world economy may depend on what happens to a company most Americans have never heard of
https://www.businessinsider.com/tsmc-us-china-tensions-may-dictate-fate-of-global-economy-2022-10?nr_email_referer=1&utm_source=Sailthru&utm_medium=email&utm_content=10_things_tech&utm_campaign=Post%20Blast%20sai:%20

A “Record” Number Of Real Estate Agents Will Quit Due To Economy, Realtor Predicts
https://quoththeraven.substack.com/p/a-record-number-of-real-estate-agents?utm_source=substack&utm_medium=email

Southwest Florida real estate expert gives outlook on market
https://www.winknews.com/2022/10/17/southwest-florida-real-estate-expert-gives-outlook-on-market/

Home asking prices tumble at record pace as mortgage rates surge: data
https://nypost.com/2022/10/17/home-asking-prices-tumble-at-record-pace-as-mortgage-rates-surge/

QQQ: U.S. ETF market contracts by $1.1T since it peaked back in March
https://seekingalpha.com/news/3892588-us-etf-market-has-shrunk-by-11t-since-it-peaked-back-in-march?mailingid=29423248&messageid=2900&serial=29423248.15777&utm_campaign=rta-stock-news&utm_content=link-3&utm_medium=email&utm_source=seeking_alpha&utm_term=29423248.15777

Mortgage demand drops to a 25-year low, as interest rates climb
https://www.cnbc.com/2022/10/19/mortgage-demand-drops-to-a-25-year-low-as-interest-rates-climb.html?__source=newsletter%7Cmorningsquawk

Recession-proof Microsoft lays off nearly 1,000 employees across the company  – Fortune
https://fortune.com/2022/10/18/recession-microsoft-software-tech-layoffs-staff-employees/

Weekly Market Insights: Wall Street Flips the Script & Enjoys a Rally

A positive start to a new earnings season and late-week hopes for a near-term easing in Fed rate hikes lifted investors’ spirits and powered stocks to gains for the week.
The Dow Jones Industrial Average jumped 4.89%, while the Standard & Poor’s 500 advanced 4.74%. The Nasdaq Composite index added 5.22% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 1.66%.1,2,3

Earnings, Fed Spark Rally

The stock market narrative shifted last week from Fed interest rate hikes (a persistent drag on investor sentiment) to corporate earnings, which boosted investor enthusiasm with better-than-expected results. Stocks surged in the first two days of trading on the strength of positive earnings surprises, aided by a modest pullback in bond yields and news that the U.K. was scrapping its tax cut plans. 

Mid-week, stocks surrendered some gains on a stronger U.S. dollar and rising bond yields. But on Friday, comments by a Fed official that hinted at a possible relaxation in Fed rate hikes sent stocks soaring to close out a good week.

Better Than Expected

Investors were approaching the new earnings season with a fair amount of trepidation amid an environment of higher interest rates and a slowing economy. The concern has been that poor earnings may drag stock prices lower from current levels.

Early earnings results have provided investors with mostly positive surprises. With 88 companies comprising the S&P 500 index reporting, 75% reported profits above analysts’ expectations, well above the 66% long-term average.4  

This Week: Key Economic Data

Monday: Purchasing Managers’ Index (PMI) Composite.

Tuesday: Consumer Confidence.

Wednesday: New Home Sales.

Thursday: Jobless Claims. Durable Goods Sales. Gross Domestic Product (GDP). 

Source: Econoday, October 21, 2022
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

This Week: Companies Reporting Earnings

Tuesday: Microsoft Corporation (MSFT), General Electric Company (GE), Visa, Inc. (V), Alphabet, Inc. (GOOGL), General Motors Company (GM), The CocaCola Company (KO), Archer Daniels Midland Company (ADM), 3M Company (MMM), Texas Instruments, Inc. (TXN), United Parcel Service, Inc. (UPS), KimberlyClark Corporation (KMB).

Wednesday: The Boeing Company (BA), Ford Motor Company (F), Bristol Myers Squibb Company (BMY), ServiceNow, Inc. (NOW), General Dynamics Corporation (GD), Norfolk Southern Corporation (NSC).

Thursday: Apple, Inc. (AAPL), Amazon.com, Inc. (AMZN), Intel Corporation (INTC), Mastercard, Inc. (MA), Caterpillar, Inc. (CAT), Merck & Co., Inc. (MRK), McDonald’s Corporation (MCD), Northrop Grumman Corporation (NOC), Comcast Corporation (CMCSA), Southwest Airlines Company (LUV).

Friday: AbbVie, Inc. (ABBV), Exxon Mobil Corporation (XOM), Chevron Corporations (CVX), ColgatePalmolive Company (CL).

Source: Zacks, October 21, 2022
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

“Judge each day not by the harvest you reap but by the seeds you plant.”
– Robert Louis Stevenson

What to Know About Excise Tax as a Business Owner

Federal and state excise taxes are for specific goods, services, and activities, such as fuel, tobacco, alcohol, airline tickets, and more.

If your business is subject to excise tax, you must file a Form 720, Quarterly Excise Tax Return, to report the tax. You must also file this form every quarter. The due dates as of 2022 are April 30 for Q1, July 31 for Q2, October 31 for Q3, and January 31 for Q4.

You can electronically file Form 720. Each industry may have its forms (ex: Form 2290, Heavy Highway Vehicle Use Tax).

* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov5

Pumpkin Bread

You can’t have fall without pumpkins, and this pumpkin bread recipe is the perfect way to enjoy the seasonal fruit. 

Ingredients:

  • 2 cups all-purpose flour

  • ½ teaspoon salt and baking powder
  • 1 teaspoon baking soda, ground cloves, ground cinnamon, and ground nutmeg
  • 1½ sticks (¾ cup) unsalted butter, softened
  • 2 cups sugar
  • 2 large eggs
  • 1 15-oz can pumpkin

Directions:

  • Preheat the oven to 325°

  • In a medium bowl, combine the flour, salt, baking soda, baking powder, cloves, cinnamon, and nutmeg. Whisk until well combined; set aside.
  • With an electric mixer, beat the butter and sugar on medium speed until just blended.
  • Add the eggs one at a time, beating well after each addition. It’s okay if the mixture is grainy.
  • Add the flour mixture and mix on low speed until combined.
  • Pour the batter into greased 8×4” loaf pans and bake for 65-75 minutes. Let cool for 10 minutes.

Tip adapted from Once Upon a Chef6

They can run side by side for thousands of miles; they are made of steel. While they constantly touch the ground, they seldom meet or touch each other. What are they?

Last week’s riddle: They are sometimes stomped on, yet they can also be very tasty and sweet. What are they? Answer: Grapes.

Sally Lightfoot Crab, Grapsus grapsus, one of the most common crabs in the U.S.

Footnotes and Sources

1. The Wall Street Journal, October 21, 2022
2. The Wall Street Journal, October 21, 2022
3. The Wall Street Journal, October 21, 2022
4. Refinitiv, October 20, 2022
5. IRS.gov, August 1, 2022
6. Once Upon a Chef, August 4, 2022

 
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.

Weekly Market Insights: Volatility Reigns; Inflation Remains Unchecked

Stocks were mixed last week amid wide intra- and inter-day price swings, as technology shares bore the brunt of the downdraft.
All three RFS client investment models beat their respective benchmarks. 
The Dow Jones Industrial Average gained 1.15% for the week. Meanwhile, the Standard & Poor’s 500 slipped 1.55%, and the Nasdaq Composite index dropped 3.11%. The MSCI EAFE index, which tracks developed overseas stock markets, lost 2.48%.1,2,3

Breathtaking Volatility

An above-consensus consumer inflation number sent stocks tumbling in early Thursday trading before inexplicably surging higher in a stunning reversal that saw the Dow Jones Industrial Average rally 1,500 points from its intraday low. Before reversing, stocks had touched levels last seen in 2020. Friday surrendered much of the previous day’s gains, sending stocks mostly lower for the week.4

The stock market began the week on a volatile note, with the Nasdaq hitting a two-year low. Recession fears and new export controls may limit U.S. companies from selling advanced semiconductor chips and related manufacturing equipment to China.5

Sticky Inflation

September’s inflation reports provided little evidence that inflation was moderating meaningfully. The Producer Price Index’s first report on inflation showed a 0.4% increase in supplier prices over August and an 8.5% increase 12 months ago. While down from August’s 8.7% rise, it was higher than market expectations.6

The subsequent release of the Consumer Price Index showed consumer prices rising 0.4% in September and 8.2% year-over-year. More troubling was core inflation (excludes energy and food prices), which gained 0.6% in September and registered an increase of 6.6% from a year ago–the biggest 12-month increase since August 1982.7

This Week: Key Economic Data

Tuesday: Industrial Production.

Wednesday: Housing Starts.

Thursday: Existing Home Sales. Jobless Claims. Index of Leading Economic Indicators. 

Source: Econoday, October 14, 2022
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

This Week: Companies Reporting Earnings

Monday: Bank of America Corporation (BAC), The Charles Schwab Corporation (SCHW).

Tuesday: Netflix, Inc. (NFLX), Johnson & Johnson (JNJ), The Goldman Sachs Group, Inc. (GS).

Wednesday: Tesla, Inc. (TSLA), United Airlines Holdings, Inc. (UAL), International Business Machines Corporation (IBM), The Procter & Gamble Company (PG), Lam Research Corporation (LRCX), Abbott Laboratories (ABT).

Thursday: AT&T, Inc. (T), CSX Corporation (CSX), Union Pacific Corporation (UNP), Freeport McMoran, Inc. (FCX).

Friday: Verizon Communications, Inc. (VZ), HCA Healthcare, Inc. (HCA), American Express Company (AXP).

Source: Zacks, October 14, 2022
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

 

You must do the thing you think you cannot do.”
– Eleanor Roosevelt

Should You Classify Your Workers As Employees or Independent Contractors?

You might hire employees and independent contractors for similar work, but there are important differences in how they are classified. Here are a few questions to consider:

  • Does the company have the right to control what the worker does and how the worker does the job?
  • Does the business direct or control the financial and business aspects of the worker’s job?
  • Are the business aspects of the worker’s job controlled by the payer?
  • Are there written contracts or employee-type benefits such as a pension plan, insurance, and vacation pay?
  • Will the relationship continue, and is the work performed a key aspect of the business?

Correctly classifying your workers is essential to avoid issues with taxes or liability.

* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov8

Hiking in Fall

Few things are more beautiful than the crisp reds, yellows, and oranges of fresh fall foliage. And what better way to experience fall than with a hike?

If you’re headed out for a fall hike, The American Hiking Society shares some tips to keep you safe and comfortable:

  • Make sure to research your route before you go. You can use apps to study the map of a specific hike.
  • Bring the correct-sized backpack for your needs. Your pack should fit your back length and be large enough to hold the essentials, such as extra clothes, snacks, and water.
  • Make sure to hike in boots that are the correct size. Nothing will ruin a hike faster than ill-fitting boots. Before you head out on your hike, walk around in your boots to break them in and ensure that they are the correct fit.

Tip adapted from American Hiking Society9

They are sometimes stomped on, yet they can also be very tasty and sweet. What are they?

Last week’s riddle: A man leaves home and makes three left turns. He comes home again and sees two masked men waiting for him, but he jogs straight toward them with a smile as others cheer. Why is this man so unafraid? Answer: He’s a baseball player who has just hit a home run. The masked men are the umpire and opposing team’s catcher.

Dubai Marina, Dubai, United Arab Emirates.

Footnotes and Sources


1. The Wall Street Journal, October 14, 2022
2. The Wall Street Journal, October 14, 2022
3. The Wall Street Journal, October 14, 2022
4. CNBC, October 13, 2022
5. CNBC, October 10, 2022
6. CNBC, October 12, 2022
7.  CNBC, October 13, 2022
8. IRS.gov, August 2, 2022
9. American Hiking Society, August 4, 2022

 
 
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.
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