The S&P 500 continues to make new highs and the economy is reopening at a rapid pace. A great deal of this is likely due to the successful Covid vaccination rollout – everyday we’re getting that much closer to normal. Current investing conditions may be as good as they get. We’re coming out of a sudden and sharp recession and what’s so different about this economic recovery is the amount of fiscal stimulus that’s being applied.
Your ACM Wealth Advisor’s experience and guidance can help you visualize your future in retirement and make the decisions to keep you on track, taking these key retirement income considerations into account and how your investment portfolio should be designed based on your individual needs, goals and risk tolerance.
By: Alan Greenspan, Senior Economic Advisor to ACM
President Biden recently announced the outline of his much-anticipated American Jobs Plan, commonly referred to as the “Infrastructure Bill”. Despite a name that aspires to benign bipartisanship common to pieces of legislation, it has unsurprisingly failed to avoid the level of debate and scrutiny one would expect of a $2.3 trillion government spending package.
While you have until May 17 to pay income taxes due for 2020, it did not change the deadline for making first-quarter 2021 estimated tax payments. Also if you are one of the millions of taxpayers missing a check from the first two stimulus payments, then you still have time to file for a Recovery Rebate Credit on your 2020 tax return.
Quarterly report from ACM’s Investment Committee covering macro economic and portfolio strategy updates as of Q1 2021
Many fixed income investors with traditional investment-grade bond portfolios were likely disappointed by their performance in 1Q’21. Investment grade fixed income can still contribute positively to a portfolio over the long-term if investors keep duration shorter and pivot away from familiar, large company bonds into lesser known but still high-quality issues. This has been our primary focus for fixed income strategies at ACM for the past several years.
The economy is now in full sprint, after being “Off to the Races”, as we wrote a month ago. Payroll jobs surged by 1.07 million in March, including upward revisions to prior months, and additional mega-sized jobs gains are likely in the coming months, as vaccinations continue to roll out rapidly and the economy reopens.