Good economic news may be driving investors to excessive risk-taking. That’s according to Tobias Adrian of the International Monetary Fund. Michelle Price of Reuters summarizes their new release. How long will we have low interest rates? There’s a new consensus among economists about interest rates that may help investors plan for the future. Proposed changes in estate tax laws are prompting the wealthy to act now. The author of The New York Times best-selling book, Wealthy By Design alerts estate planners about what’s on the horizon.
IMF Sees U.S. Equity Market Rally Continuing Despite Stretched Valuations — Federal Reserve officials are forecasting economic growth to remain above trend for at least two years to come, at 3.3% in 2022 and 2.2% in 2023. However, Tobias Adrian of the International Monetary Fund cautions that equity markets are trading “meaningfully” above fundamentals, raising concerns about “excessive risk-taking”. Read more…
What Drives Interest Rates? Old Question Is Key to New Economics — Economists are working on new rules for a low-rates era. The consensus goes like this: It’s fine for governments to borrow and spend more money — so long as they can get hold of it cheaply. They believe governments and central banks play a bigger role in shaping interest rates than the mainstream acknowledges. Read more…
Will Changes In The Estate Tax Exemption Affect You? — A mere 0.1% of the 2.7 million Americans estimated to have died in 2020 paid any estate taxes at all. But the current high estate tax exemptions are likely to change. Karen Foss of Empyrion Wealth Management encourages financial advisors to speak with high wealth clients about tax-saving moves they can take now. Read more…
John R. Day, Bill Ennis, Stephanie Hall, and Matt Heller