This 4th Week of October 2022 Thoughts
Fed Fund Watch: the 10- Year Note was 4.2% last week and is now 4.08%.
I’m reviewing portfolios for tax loss selling…to give you a bit of a break on April 15th. Please be sure I have your tax return so I know how to help you the most!
RMD Countdown: we can still take charitable contributions from your IRA, but get with me ASAP.
Loving this market rally and want to protect your gains? Call me!
There are eight weeks before New Year’s Eve: check out “What Issues Should I Consider
Microsoft is the latest tech giant to cut jobs; Snap plans to cut 20% of its workforce & along with Intel due to slump in PC demand. While rising unemployment is one of the “tells” that the chance of recession is rising, the positive GDP reading this week & the good employment numbers has everyone relaxing a bit. BUT, know...the FED will raise rates until inflation is 3%.
Chief executive officers…the “Bosses”…of the largest firms in the U.S. earn far more today than they did in the mid-1990s and many times what they earned in the 1960s or 1970s. They also earn far more than the typical worker, with much of their pay relying on stock-related compensation to encourage them to focus on short-term increases in stock price increases. CEOs are not smarter today than in the past: they use their power to set their own pay, which has grown 1,460% from 1978 to 2021. Worst of all, their compensation grew 37% faster than the price of their stock! CEO pay during the Pandemic increased 30% while millions lost their jobs and general workers only saw a 3.9% increase.
Why it matters: Grumbling about inflation? CEO pay increases end up in the final price of products and services and has risen because of their power to set their pay. They are not getting higher pay because they are more productive or skilled than other workers or because of a shortage of excellent CEO candidates. They set the rules. ESG matters to all of us, as shareholder engagement…our filing resolutions on topics like this, get us into the boardroom to present, and represent, your interests. The S in social and the G in governance is about how you treat your people and who is accountable to shareholders. With firms like JP Morgan, Jamie Diamond is the CEO AND the Board Chair. So, you ask…who is protecting shareholders, if the guy who is running the company is the alleged top watchdog? This matters in many ways!
Why does this matter to you? While the numbers are too small to read, all you have to do is look at the “peak” by the left side, which was in 2000. It took 16 years for Intel and Cisco to get back to those levels and many of those gains have been given back. This is one reason diversification matters: your portfolio reflects many different sectors, countries, and companies.
Is Tesla a buy? Do you love, or hate, Elon Musk?
Why does it matter for you? This is your chance to get into Tesla at 2020 prices. Interested? Does Elon Musk drive you crazy or is he the genius of the century? Call me if you are interested…there is nothing like owning an individual stock to make you pay attention to the market. In the spirit of transparency, I am not a Tesla OR a Musk fan and I have no dog in this fight. I do not invest in someone I don’t like…irrational or not. I have owned Cisco since 1999, though! ulie Skye | 918-408-798 | firstname.lastname@example.org
Required Disclosures: Always read the fine print! This content reflects the opinions of Julie Skye and is subject to change without notice. This content is for informational and entertainment purposes, and it is not a recommendation regarding the purchase or sale of any security. There is no guarantee that any statements, opinions, or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Securities investing involves risk, including the potential for loss of principal. There is no assurance any investment plan or strategy will be successful. Julie is an Investment Advisor Representative of Sustainable Advisors Alliance, LLC (SAA, LLC): Advisory services are provided by SAA, LLC. Registration with the SEC does not imply a certain level of skill or training.