Broker Check

Equities & Inflation, Key Planning & Investment Deadlines

February 04, 2022

Remember, the only choice is optimism, the pessimists never get it right.

Several years ago, I had a client that sold out of equities and bought gold while his wife remained a client. During one of the reviews, the one with the gold bragged about his gold and its runup in price. I then asked him if he had received any dividends or sold off some to capture the price gain, to which he answered no.

Also, many times I have been asked about gold. My answer is always the same, "Gold is for jewelry". The only major reason I see for any sort of gold holding is that you truly believe the current monetary system will collapse and you will need the gold to buy food. For a short-term hedge against inflation, gold seems to work. But those of us who are long-term investors with hopes of leaving a legacy, the inflation hedge is equities. The attached article about assets and the perfect hedge against inflation seem to confirm that fact.

Here's another fact that may help us all stay invested for the long haul. Since 1950 a strategy of investing in the S&P 500 with dividends, reinvesting the dividends and paying whatever taxes out of another pocket has produced the astounding gain of 160,000%. I will not live that long but I do have children and grandchildren that could be around for another 70 years.

Last week was a busy week for news, the most important of which, was news of disarray among those that would try to expand the welfare state to include wage earners that have incomes of up to $200,000. I don't have a crystal ball so I have no idea what may eventually become the law of the land so, as this unfolds, stay tuned. One of the articles I read this week offered up an 11-page summary of the proposed tax law changes coming out of the House of Representatives budget proposals.

I have also attached a summary of the key planning & investment deadlines for the fall quarter of 2021. If you haven't filed your 2020 income tax returns yet, they're due 10/15. I hope you take a look at what's coming up. As always, should you have any questions or wish to meet with or talk with me, please don't hesitate to email, or call.

Link to article one…
Link to article two…