Financial and Economic Brief - May 1, 2021

by © Liberty Publishing, Inc.

Top Combined Capital Gains Tax Rates Would Average 48 Percent Under Biden’s Tax Plan

If the new Capital Gains tax rates go into effect it will mean a huge tax increase not seen since the 1920’s. There is also a potentially sinister component which may dramatically affect the estate tax rates currently imposed on the wealthiest Americans. The final outcome is presently unknown; however, it will be essential to review all investment and estate planning decisions. Also, check out the national map to see where your State stands in the national rankings.
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Now that Crypto Currency is Reaching a Mainstream Audience – Watch out for Capital Gains Taxes After a Purchase of Goods and Services

For those Americans who are considering investing or buying Crypto Currencies there is a bit of a learning curve involved in making such a decision. Even Crypto terminology is as esoteric as it gets. In addition, there are thousands of Crypto Currencies available. There is no discernable methodology in determining which one people should buy. Certainly, one should exercise extreme caution before making the plunge. And, by all means, Crypto gain, if any, will be taxed.
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Mortgage Rates and Home Purchases Continue to Fluctuate

Over the past few weeks demand for new housing and new mortgages has shown a slight decline potentially because the price of homes has increased dramatically over the past twelve to eighteen months. Additional good news is that mortgage interest rates are slightly below 3% for credit worthy borrowers. Now might also be an ideal opportunity for some homeowners to refinance existing higher interest rate mortgages. The FED is presently maintaining an easy money policy that may not tighten until inflation becomes a clear threat to economic pricing.
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Financial and Economic Brief - June 1, 2021

• The Biden 2022 $6 Trillion Budget – Will it Produce Record Inflation? – The Biden Administration has proposed one of the largest Budget spending bills since the WWII economic era.

• How a Cut in the Gift and Estate Tax Exemption Will Affect You – The current Gift and Estate Tax Exemption is a healthy $11.7 Million per individual and $23.4 Million per couple for 2021.

• Is it Possible that the US Federal Government Will Issue its Own Crypto Currency? – Crypto currencies have an equivalent value of about $2 Trillion.

Financial and Economic Brief - May 1, 2021

• Top Combined Capital Gains Tax Rates Would Average 48% Under Biden’s Tax Plan - If new Capital Gains tax rates go into effect it will mean a huge tax increase not seen since the 1920’s.

• Crypto Currency is Reaching a Mainstream Audience – For those considering investing or buying Crypto Currencies there is a bit of a learning curve involved in making such a decision.

• Mortgage Rates and Home Purchases Continue to Fluctuate - Over the past few weeks demand for new housing and new mortgages has shown a slight decline.

Economic Environment: Unemployment Still High Despite Improvement

At the end of March, Federal Reserve Chairman Ben Bernanke said that the Fed's low interest rate policy is likely to remain in place a while longer to combat lingering problems in the labor market. The jobs market has been strengthening in recent months, but the unemployment rate is still high and may not fall much lower without stronger, sustainable economic growth.

Market Review: Financials Lead Stocks to Strong Returns

Large-, mid-, and small-cap stocks enjoyed a robust quarter with returns in excess of 12%, and growth stocks outperformed value stocks across all market capitalizations. In the large-cap universe, as measured by the S&P 500, all sectors, save utilities, advanced, led by financials and information technology with returns higher than 20%.

Upbeat earnings continue to outweigh mixed economic data and Europe concerns

Stocks moved higher as good earnings reports prevailed over investors' persistent worries about the European debt crisis, as well as some data suggesting a slowdown in the U.S. economic recovery. Markets started the week on a down note in reaction to a steep drop in European stocks...

U.S. Stocks Gain as U.S. Economy Improves

The S&P 500 Index turned in its best quarterly performance since the third quarter of 2009 as the eurozone backed away from the point of collapse, the U.S. economy showed continued signs of life, and central banks pledged to step in and support global economic growth. Investors diverted assets from relatively safe but low-yielding bonds into riskier investments following last year's turmoil. Strong corporate earnings reports also bolstered U.S. equity returns.

Economic Environment: Unemployment Still High Despite Improvement

At the end of March, Federal Reserve Chairman Ben Bernanke said that the Fed's low interest rate policy is likely to remain in place a while longer to combat lingering problems in the labor market. The jobs market has been strengthening in recent months, but the unemployment rate is still high, and it may not fall much lower without stronger, sustainable economic growth.

U.S. Gains on Improved Economy, Strong Corporate Earnings

Despite stumbling near the end of the month, major U.S. stock indexes rose in March, adding to the gains of the first two months of 2012. The S&P 500 Index reached the 1,400 mark for the first time since May 2008, and the Dow Jones Industrial Average climbed to its best level since the beginning of the financial crisis.

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