ESTATE & GIVING These cautionary tales of estate planning mistakes offer a few important lessons. You’ve worked long and hard to build your estate. Don’t let blunders keep your wishes from being carried out and leave your family – and wealth – in the lurch. Here are a few lessons to keep in mind. No plan in place Prince Rogers Nelson did a lot of things right in his life, leaving an indelible musical legacy that spanned generations. Unfortunately, his financial legacy wasn’t as successful. The artist formally – and formerly – known as Prince passed ...

March 1, 2024 Equity investors didn't mind the extra day this February as both domestic large-cap stocks and small-to-mid-cap stocks saw steady gains through the month, bringing both groups into positive territory year-to-date, though the latter continues to lag. The growth in large company stocks has been driven primarily by enthusiasm for artificial intelligence (AI). “In the technology sector, the move has been an earnings-driven story, with the sector benefiting from the AI revolution. While some consolidation is likely after the recent run-up in stock prices, we remain favorable on the sector,” said Raymond James Chief ...

February 1, 2024 The report card is in. Despite high interest rates, elevated inflation and a challenging market environment, U.S. gross domestic product grew a strong 3.1% in 2023. And in the month since, consumer spending has continued to be robust, unemployment has remained low and the S&P 500 recorded new highs. Some took this as bad news. Supported by this resilient economy, the Federal Reserve (Fed) elected to hold interest rates steady at the first Federal Open Market Committee meeting of the year on January 31. “January was déjà vu, continuing the narrative of late ...

January 1, 2024 A choir of optimistic investor sentiment closed 2023 on a high note, as expectations of “steep cuts to interest rates” may be at odds with the Federal Reserve’s (Fed’s) actual sheet music. Considering the tumult of the year as sentiment focused on economic and inflation data, this discordance isn’t all that surprising and could signal volatility to come, but in the meantime, the market environment looks a lot brighter at the tail end of 2023 than it did at the close of a dreary 2022. “December’s rally was fueled by a further deceleration ...

December 1, 2023 A monthlong feast, November had a dish to suit nearly every taste. The four-week rally sent major market indices to near or beyond the year-to-date peaks reached at the end of the second quarter. What summoned this cornucopia? The right mix of good data and “bad” data. The good data: The Consumer Price Index tallied the inflation rate to be 3.2%, well off its recent high of over 9% in June 2022. The “bad” data: softer than expected economic performance, which led the S&P 500 to record eight consecutive days of gains, its ...

November 1, 2023 Many words have been published about the U.S. economy plowing through conventional expectations amid the Federal Reserve’s (Fed) campaign to lower inflation by raising interest rates. Through October, this theme would continue as headline economic data told the tale of an ultra-resilient U.S. economy, even as volatility churned financial markets. Among those data: Third-quarter retail sales were higher than expected. September saw 336,000 nonfarm jobs added (a robust number) as unemployment remained at 3.8%. And the biggest of all, the U.S. economy grew at an annualized rate of 4.9% in the third quarter, ...

October 1, 2023 Throughout the run of the Federal Reserve’s (Fed) inflation-fighting, rate-raising program, the equity market has shown uncommon enthusiasm supported by a growing economy, a strong labor market and healthy consumer spending. Contrary to the expected way of these things, inflation continued to cool even as the economy and the markets remained hot. However, in September, “We believe the economic cycle may be reaching an inflection point,” Raymond James Chief Investment Officer Larry Adam said. “The S&P 500 had its second-best start to a year since 1997, and we’ve warned that equity markets were ...

September 1, 2023 A steady stream of news drained enthusiasm from the equities markets through most of August, snapping a five-month growth streak at a time of the year known for cool market performance despite the swelter of its dog days. Among that news: A tick in the wrong direction of a key measurement ignited fears of a second wave of inflation. Oil prices rose, as did bond yields. Federal Reserve (Fed) Chairman Jerome Powell reiterated the Fed’s commitment to lowering inflation with higher interest rates. Fitch Ratings downgraded the U.S.’s sovereign credit rating one notch ...

Wealth transfer is a multifaceted journey that extends beyond numbers and assets – it embodies the essence of family values and the preservation of legacy. In a world where affluent individuals seek to impart financial wisdom to the next generation, the fusion of financial literacy and family values takes center stage. Explore how the intersection of these elements can shape a seamless and impactful wealth transition. The Legacy of Values: The wealth transfer journey begins with a focus on the values that underpin a family's success. At its core, this process involves passing on a legacy ...

August 1, 2023 Have the steady hand of the Federal Reserve (Fed) and the resilience of the U.S. economy created the much-hoped-for “soft landing” at the bottom of the inflation crisis? Time will tell – even as it declines, inflation remains above target levels – but the market seems willing to give the benefit of the doubt. In July, equity markets built on a strong first half of the year and continued to push upward. The S&P 500 marked a 3% climb for the month and the Dow Jones Industrial Average reported 13 consecutive days of ...

July 1, 2023 The bear may have entered hibernation in June, but can we now count a bona fide bull? That may be overselling it. Equities capped off a remarkable first half of the year by continuing to gain value even as the Federal Reserve (Fed) signaled that its inflation-fighting program could yield two more rate increases in 2023. But with a long-expected recession still failing to appear, investors seemed to focus, instead, on the possibility of a pain-free untying of 2022’s post-COVID tangles. “The equity market behaved surprisingly well given that it went from expecting ...

REVIEW YOUR CHARITABLE OPTIONS AND OPPORTUNITIES. Economic turbulence and high inflation may have you feeling cautious about making donations. The good news is there's a range of options to ensure that your charitable donations aren't forced to grind to a halt, and that causes important to you continue to receive support. Explore some of the stats and strategies that can help you continue to make a meaningful impact in spite of market volatility. Steps to prep for charitable giving Make charity a part of your tax and financial planning strategies. Find out if the charity or ...

June 1, 2023 Though the markets remained optimistic about the chance for a bipartisan deal on extending the federal debt limit, May was nonetheless a time of waiting and seeing, extending a streak of equity market choppiness into a second month. Affirmation came during the Memorial Day weekend with the White House and House leadership announcing a deal to ensure the government continues to pay its debt. Despite a list of legislators pledging to vote No, the deal is expected to pass, averting a jump into the unknown. Meanwhile, underneath the political drama, the domestic economy ...

May 1, 2023 Though equities have proven resilient, more of the long-expected effects of the Federal Reserve’s (the Fed’s) rapid interest rate-raising policy arrived in April. “After nearly 500 basis points of tightening, cracks in the labor market and economy are starting to show,” said Raymond James Chief Investment Officer Larry Adam. “This combination of decelerating economic growth and lowering inflation suggests the Fed is near the end of its most aggressive tightening cycle in over 40 years.” With so many major, contrary currents driving the market, this seems like a good opportunity to answer some ...

ESTATE & GIVING   A compelling plan to make a genuine impact on the world has a variety of components. A growing number of families are thinking “big picture” when it comes to both their financial and philanthropic planning. Through community support projects and initiatives, philanthropic endeavors have the power to promote well-being and make a meaningful impact on people’s lives. For many high-net-worth families, philanthropy is the vehicle that enables them to contribute to key causes, embody their values and strengthen their legacies for generations to come. But building a compelling philanthropic brand – with ...

April 3, 2023 Events through March would again test a market that has continued to demonstrate resilience. While volatile conditions remain, and despite equities’ February retreat carrying into mid-March, the major indices ended the first quarter of 2023 up. If one were to look solely at the headlines, this may have come as a surprise. In the days before the Ides of March, the failure of Silicon Valley Bank for lack of liquidity stoked concerns of panic-induced bank runs and a bank-collapse contagion. Quick action by federal authorities and industry actors to protect depositors helped contain ...

March 1, 2023 In other contexts, a string of positive economic data, including reports on jobs and retail sales, would provide a tailwind for equities. In these inflationary times, however, the specter of the Federal Reserve’s (the Fed) commitment to cooling the economy via higher interest rates has made any good news suspect. The major stock market indices reflected this tension until a key measure of inflation provided the bad-enough news needed to seemingly convince the market that the Fed will continue toward a higher interest rate regimen. Thus February’s hopes of building on January’s gains ...

February 1, 2023 The wave of negativity that engulfed the markets last year was met with a ray of optimism in January as inflation decelerated, interest rates fell, China reopened, and earnings came in better than feared. The result: global equity markets rebounded strongly to start the year, highlighted by the S&P 500 having its second-best January over the past 25 years, the NASDAQ being up over 10%, and emerging markets technically entering a bull market by rallying 20% off of the lows. So, you may wonder, with this good news, why are some of the largest companies ...

January 4, 2023 December did not bring the good tidings investors wished for – and typically see in the final month of the year – as most major asset classes struggled at the end of an especially volatile year for the capital markets. December is historically the third-strongest month for the S&P 500 Index, but the blue-chip stock index declined 9.4%, among its worst December returns since the early 1930s. For the year, the Index was down 19.4%. Fixed income offered little reprieve from equity struggles. Given the sharp rise in yields, the bond market experienced ...

The year-end fiscal 2023 government funding bill contained legislation that makes the most significant changes to the U.S. retirement savings system in decades. The SECURE Act 2.0 legislation builds on retirement savings changes passed in 2019 and contains new provisions that further raise the required minimum distribution (RMD) age, shift to automatic plan enrollment and provide for new matching/emergency withdrawal opportunities. Most of the key provisions are effective in the 2024-2025 timeframe, but smaller adjustments (such as an increase in the RMD age to 73) will be effective in 2023. See below for a detailed overview ...

December 1, 2022 November gave investors reason to be thankful, including a bucket of good-enough economic news that contributed to a second consecutive month of gains. Better-than-expected inflationary data and signals from the Federal Reserve (the Fed) that its interest rate hikes may soon slow – even as they continue – likely played a role. A typical end-of-year seasonal rally and the conclusion of midterm elections may have also done their parts to push us forward. “Certainty is always more attractive to investors than uncertainty, so regardless of who wins, the end of midterms is usually ...

November 1, 2022 The nature of the market can at times lead us toward strange metaphors to explain its movements, but to spare you the one about a cart pulled by two competing horses, let’s describe October’s result directly: Despite the Federal Reserve’s higher-for-longer interest rate strategy and persistently high inflation, strong corporate earnings helped push October to become the best month of the year for equity investors. In the end, the S&P 500 ended the month up 7.99%. “October was a struggle between macroeconomic drivers – inflation and interest rates – and microeconomic drivers – ...

The year-end holiday season is full of important financial deadlines. Mark your calendar accordingly. Fall 2022 market closures Nov. 24: Thanksgiving Day Dec. 26: Christmas Day (observed) Dates to remember For deadlines that fall on a weekend, action may need to be taken by the preceding weekday. Oct. 1: Last day to establish a SIMPLE IRA plan or a safe harbor 401(k) to be effective for 2022. Oct. 15: Open enrollment for Medicare Parts C and D begins. Make any changes to your coverage by Dec. 7. Oct. 15: The final day to file a 2021 income tax return for those ...

October 3, 2022 Inflation remains persistent. To fight it, the Federal Reserve (the Fed) indicated it would need to raise rates higher than originally expected for longer, sending shocks through the market. As in previous months, these events drove the market’s major currents in September as investors concluded that a deeper recession in 2023 may be the necessary antidote to inflation. As a result, the S&P 500 recorded a 9.34% loss for the month, in line with the other major indices. Recession is a word that evokes a lot of dread, especially if one uses 2020 ...

September 1, 2022 The Federal Reserve’s (Fed’s) resolve, the end of a rally, trouble overseas and a strong jobs growth report were some of the ingredients of August’s strange brew of market news and events. We entered August in the midst of an upswing for stocks that had provided consistent, broad gains since mid-June, likely bolstered in part on the belief that the Fed would cease its interest rate raising plan. The momentum faded mid-August. Then Fed Chairman Jerome Powell deflated the optimistic speculation. Despite positive movement on inflation, Powell said households and businesses should expect ...

Before your child was even born, you were planning. What will we name him? What color should we paint her room? What is the best childcare alternative? But with all the demands and decisions that new parents face, one important aspect is often unintentionally overlooked in those early stages – college. However, with tuition rates rising, it should be at the top of every parent’s planning list... no matter what the child’s age. You have big dreams for the child in your life. Don’t let a lack of planning sidetrack those aspirations. As your financial advisor, ...

August 2, 2022 The Federal Reserve (Fed) continued its aggressive battle against inflation, raising the federal funds rate another 0.75% at its July meeting – the fourth rate bump this year. We’re now in a neutral 2.25% to 2.5% range, and the central bankers are on track to raise rates to a mildly restrictive 3% to 3.5% range by the end of the year. While inflation fears remain high, it is likely that we are past peak inflation and the largest interest rate increases are behind us, explains Raymond James Chief Investment Officer Larry Adam, echoing ...

June 30, 2022 As the Federal Reserve (Fed) committed itself to battling inflation this year, one question looming large was how aggressive a tack it would take. In June, we received a second, clarifying answer. In light of continuing high inflation, the Fed took a more forceful approach than it had indicated just weeks earlier, raising the federal funds rate by 0.75% – the largest single bump to interest rates since 1994, and the third hike this year. Raising the rate affects the cost of lending across the economy, through which the Fed hopes to cool ...

June 1, 2022 The churn of now-familiar currents produced a market seemingly driven by headlines as the S&P 500 closed more than 1% up or down 10 times on the news of the day. At different moments, inflation and the Federal Reserve’s response to it, China and COVID-19, rising food and energy prices, and the Russia-Ukraine war provided varying guidance to a market eager for direction. At the end of May, however, the equity markets rallied, pulling the S&P 500 from a bear-like slump to close down 0.56% for the month. That rally could signal investors’ ...

Volatility is never comfortable, and this latest round is no exception. Panicked headlines may have investors feeling apprehensive and uncertain. This has been the worst start to a year for the S&P 500 in the last 25 years. However, we’ve seen this happen time and again. Market pullbacks and corrections are necessary to sustain a healthy market and that, over time, the market has experienced positive growth. “The first two years of a bull market tend to lead to investor complacency as returns are robust and broad-based,” said Raymond James Chief Investment Officer Larry Adam. “The third ...

May 3, 2022 The nature of the economy is that there are always causes for concern in strong markets, just as there are reasons for optimism in weaker ones. It’s fair to say, however, that April made it easier to find the concern than the optimism. Still, we take the view that the headwinds we’ve faced so far in 2022 represent discomfort masking long-term opportunity and a fundamentally tenacious economy. “While the markets have been focused on the negative, they have ignored the resiliency the economy is showing,” said Raymond James Chief Investment Officer Larry Adam. ...

The Russian invasion of Ukraine has led to increased awareness of potential cyberattacks, particularly within Ukraine and other Eastern European countries. We understand you may have concerns about whether these events affect the security of your financial accounts – but rest assured that our cybersecurity professionals have been monitoring and preparing to defend against threats like these for years. At this time, Raymond James hasn’t experienced any increase in cyberattack activity. Our Cyber Threat Center will continue to actively monitor the conflict and take all necessary steps to protect our networks and your personal information, including ...

April 4, 2022 Global equities experienced volatility throughout March, though a late rally softened some of the sharper losses from earlier in the month. The volatility of recent months continued, driven by geopolitical events that we believe are unlikely to dissipate soon, a more hawkish Federal Reserve (Fed) and higher prices. As expected, the Federal Open Market Committee raised the federal funds rate 25 basis points at its March meeting and indicated that further increases will be needed to return inflation to its 2% goal. Chair Jerome Powell reiterated the central bank’s commitment to curbing inflation, ...

Even though tax filing season is well under way, there is still time to make a contribution for 2021 to a Traditional or Roth IRA until Monday, April 18th, 2022. You can contribute up to $6,000 for 2021 or $7,000 if you were age 50 or older on or before December 31, 2021. Important Reminders When Submitting Your Contributions: Make the check payable to Raymond James. Put the contribution year and account number on the memo line of the check. Traditional IRA: You can contribute to a traditional IRA for 2021 if you had taxable compensation. ...

March 1, 2022 Investors have been on a bumpy ride as both domestic and emerging markets have seen continued volatility over the past few months. February was no exception with the broad-market S&P 500 dipping into its first 10% correction in almost two years as geopolitical tensions intensified. The last week of February brought the somber news of escalating conflict in Eastern Europe. We, along with many of you, hope for a peaceful resolution soon without further loss of life. The world continues to watch this very fluid situation between Russia and Ukraine. While the conflict ...

February 1, 2022 Volatility was the trend for domestic and foreign equity markets in January, as well as the domestic bond market, albeit to a lesser extent. The broad-market S&P 500 flirted with a 10% pullback, for example. The ups and downs in the domestic equity indices stabilized briefly ahead of the Federal Reserve’s (Fed’s) meeting, which left short-term interest rates unchanged, but turned skittish shortly after Fed Chair Jerome Powell announced there was “quite a bit of room” to raise rates in the near future. The market seemed to have priced in three hikes this ...

January 5, 2021 While the traditional end-of-year Santa Claus equity rally may not have been as pronounced as we typically see, it may have just come early. Thus far, we’ve seen both the Dow Jones Industrial Average and the S&P 500 notch new highs in December with underlying market sectors firmly in the green. Despite the challenges posed by coronavirus variants and extreme weather events, 2021 saw the best economic growth since 1984, muted market volatility and the S&P 500 delivering a return of approximately 27% over the course of the year. Raymond James Chief Investment ...

December 1, 2021 Even as many families in the United States gathered to celebrate what felt like a more normal Thanksgiving holiday – complete with traditional feasts – there was fresh evidence the pandemic will provide us with more to digest. Positive fundamentals and supportive seasonality propelled the equity markets to record highs during the month. However, volatility increased after the holiday and the S&P 500 Index lost roughly 1% in November – making it the second negative month of the year. The emergence of the new omicron COVID-19 variant in South Africa and newly imposed ...

November 1, 2021 The major domestic equity indices climbed steadily through October, a confident step forward from September’s stumble even as supply issues created intermittent voids on supermarket shelves and broad patches of uncovered tarmac at car dealerships. Strong corporate earnings reports set the stage at the start of the month, and the release of a low gross domestic product (GDP) growth estimate at the end of the month did not blunt the markets’ upward march. The S&P 500 and Dow Jones Industrial Average both set new record highs in October, and the NASDAQ Composite was ...

October 1, 2021 Markets prefer clarity – or at least as close a facsimile as they can get. Since the start of the pandemic, we’ve seen how markets can push through uncertainty, up to a certain point. September, however, brought a stack of compounding uncertainties, combining to end the S&P 500’s seven-month streak. To understand what caused this downward tilt, look to these four Cs: China: The potential default of Evergrande, the Chinese real estate giant Congress: Brinkmanship over the federal debt ceiling and pending legislation Commodities: The rapid oil price hike to values not seen ...

September 1, 2021 Record-setting earnings, official FDA approval of the Pfizer vaccine and anticipation that booster shots will begin in September helped drive equity markets steadily higher in August. The S&P 500 index, a common measure for U.S. large-cap performance, reached 12 highs during the month on its way to gains of roughly 3%. Since Memorial Day, the S&P 500 has gained more than 7%, belying the idea that equity markets take the summer off. “Summer strength continued in August, dispelling the myth that investors ‘sell in May and go away,’” said Raymond James Chief Investment ...

August 2, 2021 As the major domestic equity indices continued to mark new highs through July, they provided an example of how dueling narratives can both be true while the forward-looking market produces a clearly positive result. In this case, optimism bolstered by a broad selection of economic data and sentiment – gross domestic product (GDP) growth, employment, earnings and reduced inflationary fears among them – has managed to, for now, contain COVID-19 delta variant worries. The S&P 500 and NASDAQ both set seven all-time highs in July, while the Dow Jones Industrial Average recorded five. ...

First Quarter Market Update The first quarter of 2021 witnessed a boost for the economy as the continued expansion of the vaccine rollout and the passage of the almost $2 trillion stimulus bill was reflected in rising gross domestic product (GDP) estimates, a further move up in equity prices, and a steady rise in interest rates. The S&P 500 Index, which measures large stock performance, is up 5.77% through the end of March and the Dow Jones Industrial Average measure of the stock performance of 30 large stocks is up 7.76%. The tech-heavy NASDAQ index is ...

February 1, 2021 It’s been a somewhat volatile week for the equity markets, and we wanted to offer some perspective on what’s happening for our valued clients. Last week’s selloff was the largest in three months for the three major U.S. stock indices – the S&P 500, the Dow Jones Industrial Average and the NASDAQ. Volatility was especially present, however, in a handful of stocks that experienced unusual activity involving a form of speculative investing called short-selling. While all investment strategies contain some level of risk, short-selling, options trading, or going long on a stock, involves ...

        Investing involves risk, and investors may incur a profit or a loss. All expressions of opinion reflect the judgment of the Raymond James Chief Investment Office and are subject to change. There is no assurance the trends mentioned will continue or that the forecasts discussed will be realized. Past performance may not be indicative of future results. Economic and market conditions are subject to change. The Dow Jones Industrial Average is an unmanaged index of 30 widely held stocks. The NASDAQ Composite Index is an unmanaged index of all common stocks listed ...

November 25, 2020 For the 2021 tax year, individual investors can contribute up to $6,000 to either a traditional or Roth IRA. If you’re age 50 or older, you can contribute an extra $1,000. I wanted to remind you so you can take full advantage of your ability to save toward retirement. Contributing as much as you can as early as possible allows those assets more time to potentially grow and compound. Keep in mind that contributions generally must be made before you file your tax return in April.   You may also contribute up to $19,500 ...

November 10, 2020 Few things are as encouraging as a glimpse at the light at the end of the tunnel. Pharmaceutical makers Pfizer and BioNTech announced Monday morning that their coronavirus vaccine has shown strong results through ongoing drug trials – a 90% efficacy rate with minimal side effects. This news immediately gave lift to the markets, adding another historic moment to a year chock-full of them. Already buoyed from the weekend announcement of former Vice President Joe Biden’s 2020 presidential election win, the broad-based S&P 500 and Dow Jones Industrial Average indices recorded massive gains ...

November 4, 2020 So now we wait. Like long-term investing, this election has required perseverance, persistence and patience. If you’re anything like us, you have anxiously awaited the outcome of this seemingly unending election cycle. And truth be told, all elections appear more crucial than the one before – this one in particular as we deal with the ongoing pandemic and seek answers to uncertainty surrounding the global markets and economies, taxes, monetary policy and further fiscal stimulus. Initial results, including some from closely watched battleground states, caused the markets to rally Wednesday morning. While markets ...

October 27, 2020 Stocks faltered at the beginning of the week as COVID-19 cases surged and stimulus talks stalled. Uncertainty surrounding the 2020 election also drove market declines.   The S&P 500 (-1.9%), Dow Jones Industrial Average (-2.3%) and NASDAQ (-1.6%) each sharply declined today. More specifically, the S&P 500 closed below its 50-day moving average for the first time in three weeks. While moves like this are uncomfortable and never easy to digest, it is important to put the decline in perspective, cautioned Raymond James Chief Investment Officer Larry Adam. For the S&P 500, it ...