The classic definition of a recession is when your neighbor is out of work and the classic definition of a depression is when you’re out of work. As the attached article indicates, the recession seems to have ended for higher income wage earners while lingering for those at the lower end of the wage scales. From my uneducated viewpoint, if many of the states that remained closed down, North Carolina being one, would just open up many of the lower end of the wage scale would be re-employed. Remember, before the plague came upon us, our economy was a 5 star golden economy with some of the lowest unemployment #s across the entire spectrum of the US employment picture.
When this email is delivered, we will have 8 days left in the current election lifecycle. Poles show the race to be tightening. Pretty much like 2016, who really knows what might happen. I do know that the portfolio manages used are trying to determine how best to position their portfolios for whatever might happen. The equity markets for the most part remain confused and not sure which way to lean. Last week was a down week for stocks. However, the recent market gains seem to indicate that, regardless of who wins, the economic outlook going forward looks positive. We will have 3rd quarter GDP and unemployment numbers out this coming week that should give us some indication of where the economy might be headed.
I also included an articled about Qualified Charitable Distribution, GCDs. We are heading into the end of the year where we might want to be looking for ways to contribute to our favorable charities. The GDC allows a taxpayer to take his/her distribution from an existing IRA and send it directly to the charity of choice. In doing so, the distribution from the IRA will be offset by the contribution to the charity, thereby not adding to the income tax liability coming from a distribution from an IRA. Good article and I hope you enjoy the read.
As we countdown these next 8 days to election, I hope we all can maintain our sanity and hope and pray for a successful outcome regardless of which side of the aisle we find ourselves on.
As always, should you have any questions or wish to speak with me, please email or call. Now let’s all go out and have a super week.
PS: This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.