Tax Time & 2024Q4 Earnings Season
A couple of notes for today:
1. Tax Season is Here:
As we’ve been reminding everyone for the past six months, 2024 capital gain taxes are expected to be high. This is due to the stock market’s lack of a meaningful pullback, which limited opportunities to harvest losses. While it’s great news that the portfolios performed well in 2024, the downside is that we may owe more than anticipated to Uncle Sam and the state by April15th—or face higher estimated tax payments for 2025. Please keep us updated to ensure sufficient liquidity is available for these obligations.
2. Economic and Market Outlook for 2025:
There have been many questions about the economy, the incoming administration, and what the market holds in 2025. For more data-driven insights, check out the latest Macro Brief from our friends at Strategas (click here).
In summary, Q4 earnings reports are optimistic, as are 2025 earnings expectations. However, we anticipate potential downside revisions as the year progresses, particularly as the Fed deliberates on rate cuts amidst concerns about inflation and slower GDP growth.
As always, our focus remains on managing portfolio risk to meet your long-term objectives. We’ll be reaching out soon to discuss further.
Thank you for your trust and confidence. Until next time, Take Care.
Tom, Kelly, Alex, Amanda, Jesus, Larry, & Rachael