From the desks of Stanley Katz & Lauren Madera
WEEKLY H&C TO BE ENJOYED WITH BREAKFAST AT WIMBLEDON!
The three major U.S. stock market indices posted modest declines this week (i.e., DJIA: -1.02%, S&P 500: -0.31%, Nasdaq: -0.08%), suggesting investors may be taking a more cautious stance as they digest recent policy developments. Fidelity’s analysis of the new tax act reveals a mixed bag of changes that will affect different taxpayers…well…differently. The legislation makes permanent certain individual income tax rates and expands some deduction limits. It also introduces new complexities around state and local tax deductions and estate planning provisions. Bottom line though: For most Americans, the changes represent incremental adjustments rather than dramatic shifts in their tax obligations.
What’s more concerning for long-term investors is the sobering fiscal picture painted by American Century’s debt analysis. The federal government’s debt burden has reached $36 trillion and shows no signs of slowing as mandatory spending on programs like Social Security and Medicare consume an ever-larger share of the budget. This isn’t just an abstract number—rising debt levels could translate into higher borrowing costs for everything from mortgages to business loans, potentially dampening economic growth. The government now spends more on interest payments than on national defense. This milestone underscores how fiscal constraints may be an enduring feature of the economic landscape.
Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.
Fidelity:
American Century:
Argus:
BlackRock:
J.P. Morgan:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
Source for weekly stock market returns: Barron’s.
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