Market Update

StocksA belief in peak hawkishness + prevailing pessimism of money managers (making them underweight) could keep this rally going. Fear of missing out perhaps? The market rallied, despite the widespread belief that this is a bear market rally, only making the Fed more aggressive. Highlights The decline in earnings growth for Q3 has largely been applied to growth stocks. Investors …

IRS to Make Largest Increase Ever to 401(k) Contribution Limit

Americans can save thousands more dollars in tax-advantaged retirement plans in 2023. Millions of Americans can save more in retirement accounts next year, after inflation adjustments made Friday by the Internal Revenue Service. The employee contribution limit for 401(k) and similar workplace plans will jump $2,000 to $22,500 for 2023, the largest increase ever in terms of dollars and percentage, …

Market Update

EarningsConventional wisdom is that when the Fed wins its fight with inflation, stocks will take off. But if inflation slows and wage inflation is sticky, margins will contract. Early in the cycle, inflation helps companies. Later on, it hurts margins. Analysts expect Q3 EPS of $55.67, up 2.6% YoY. Excluding energy companies, earnings would contract 3.9%. As economy slows, higher …

who are age 62 to 64 contribute an additional $10,000 to their 401(k) or 403(b) plans

Andy Friedmand Says SECURE 2.0 Should Pass After Midterms

Very few bills are likely to move in the lame duck session that historically grips Congress after mid-terms, but Washington insider Andy Friedman believes SECURE 2.0 (Securing a Strong Retirement Act of 2022) has an excellent shot. “Right now, the Senate and House have each passed [their version of the] bills with only minor differences that are easily worked out. …

Market Update

CurrenciesThe dollar rose 7.2% for the quarter – its strongest quarterly gain since 2015. It rose 3.2% in September. The dollar is being pushed higher by an aggressive Fed and the relative stability of the U.S. economy. The extreme dollar strength could lead to an unpredictable event. It’s been amazing to see the dollar rally while other central banks are …