Insight
Q4 2024 Review & Outlook
Solid Economic Growth and Rate Cuts Fuel Further Gains in Stocks
The S&P 500 rose to an all-time high in Q4 and extended gains for 2024(1). The election results boosted expectations for tax cuts and other pro-growth policies in 2025, while the economy proved resilient with ongoing interest rate cuts by the Federal Reserve, further supporting the market.
Q4 2024 Wealth Strategy Insights
Double Down on Trickle Down: Tax Policy Following A GOP Election Sweep
Over the past fifty years, the battle over income tax policy has been a cornerstone of American politics, shaping economic discourse and influencing voter sentiment. In the twenty-first century, however, federal tax policy is increasingly temporary due to a combination of factors, including bitter polarization among lawmakers in Washington.
Q3 2024 Review & Outlook
Fed Rate Cuts and Solid Earnings Overcome Rising Economic Anxiety
Markets began the third quarter with a continuation of the year-to-date rally thanks to good Q2 earnings results and generally solid economic data. However, while the S&P 500 hit a new all-time high in mid-July, the second half of the month proved more volatile, driven by a material rotation within the S&P 500 from the heavily weighted tech sector (>30%) to other, smaller market sectors such as utilities, financials, and industrials.
Q3 2024 Wealth Strategy Insights
Why You Need a Social Media Policy
As a former Single Family Office Executive, I’ve had the privilege of experiencing life’s many milestones alongside the families I’ve served. From welcoming new family members to organizing funerals and everything in between—marriages, divorces, and even handling crises, I’ve experienced it all. But amidst those responsibilities, there’s one moment that stands out as the worst: hearing the news that a family’s child has been kidnapped.
David Canter Joins Parallel Board of Directors
Parallel Advisors Announces Appointment of David Canter to Board of Directors
Parallel Advisors, a premier independent wealth management firm, today announced the appointment of David Canter to its Board of Directors. Canter, a well-respected expert in the Registered Investment Advisor (RIA) industry, will be the first outside board member at Parallel Advisors and will provide insight and guidance as the company executes on its growth strategy.
Q2 2024 Review & Outlook
Expected Rate Cuts and Falling Inflation Push the S&P 500 to New Highs in Q2
While the S&P 500 ultimately hit new highs in the second quarter, the month of April was decidedly negative for markets. The catalyst was the March Consumer Price Index (CPI), which rose 3.5% year over year, and came in higher than estimates. That hotter-than-expected reading reversed several months of declines in CPI and stoked fears that inflation could be “sticky.” Market participants pushed rate cut expectations out from June to September in response…
Q2 2024 Wealth Strategy Insights
The Strategic Advantage of Long-Term Thinking in Multigenerational Families Rus Miller Director of Family Office Services Parallel Advisors
As the youngest of five children, I experienced firsthand the consequences of a family lacking a focus on the future. In my youth, my family could be described as an "Emerging Wealth" family, teetering on the cusp of generational wealth. My parents built a thriving real estate business in Southern California, owning a brokerage firm with over 30 agents, a mortgage brokerage, and more than 50 single-family rental properties.
Q1 2024 Review & Outlook
The First Quarter: Strong Fundamentals Propel Stocks to New Highs
The momentum from the 2023 rally carried into the first quarter of 2024, fueled by an investor-friendly blend of steady economic growth, falling inflation, and expectations of Federal Reserve (Fed) rate cuts. The year kicked off on a less positive note when the December Consumer Price Index (CPI), an important inflation indicator, declined less than expected, indicating that inflation might not be falling towards the Fed’s 2.0% target as rapidly as hoped.
Q1 2024 Wealth Strategy Insights
Orchestrating Wealth: The Harmonious Symphony of Multigenerational Wealth Management
In the world of investment management, where the pursuit of financial excellence often dominates the discourse, the notion of entrusting the role of Chief Investment Officer (CIO) to an individual with a degree in music composition may appear unconventional, perhaps even audacious. One would also think that the Managing Director of a multi-generational Single Family Office would be putting their career on the line if they actually made this hire. After all, the Managing Director maintained the primary responsibility for the management of all assets of a 4 generation, 32-member family.
Q4 2023 Outlook & Review
The Fourth Quarter: Summary and Market Outlook
Markets staged an impressive reversal in the fourth quarter, driven by a surprising dovish pivot by the Federal Reserve (Fed), coupled with solid economic activity and a continued decline in inflation. However, the strong fourth quarter performance obscured the fact that stocks and bonds were under significant pressure at the beginning of the quarter.
Q4 2023 Wealth Strategy Insights
Secure Act 2.0 And Future Changes in 2024
You may have heard about the passage of the SECURE Act 2.0 in December 2022, which introduced several changes to tax laws. Some of these changes have already taken effect, while others are scheduled for implementation in 2024 and beyond. Here is a summary of key modifications:
Q3 2023 Outlook & Review
The Third Quarter: Impact of Higher Interest Rates on Stocks
The S&P 500 began the third quarter on a positive note, mirroring its second-quarter performance with gains(1). However, concerns arose in August and September due to rising bond yields and worries about a potential economic slowdown. As a result, the S&P 500 ended the quarter with a modest loss, while still maintaining substantial gains year-to-date.
Q3 2023 Wealth Strategy Insights
Employee Stock Purchase Plans (ESPP)
An Employee Stock Purchase Plan (ESPP) is classified as a type of option program under tax law. An ESPP grants employees the right to buy company stock at a computed price, at some future date. The market price (FMV) used to compute the discount is often determined on the offer date – the date the option was granted.
Q2 2023 Wealth Strategy Insights
Mid-Year Financial Planning Check-Up: Tips for a Stronger Future
As we reach the halfway point of the year, it's a perfect time to conduct a financial planning check-up. Here are some essential tips to consider: Revisit Your Spending Maintaining a budget and sticking to it can be challenging. However, reviewing your credit card and bank statements from the first half of the year can help you stay on track. Many credit card companies categorize your spending, making it easier to identify areas where adjustments can be made for the remainder of the year.
Q2 2023 Review & Outlook
Declining Inflation and Resilient Growth Push Stocks Higher in Q2
Stocks in the second quarter experienced solid gains as inflation declined and growth remained resilient. The S&P 5002 and other major indices performed well following the Federal Reserve's pause in rate hikes, better-than-expected corporate earnings, and the resolution...
Q1 2023 Wealth Strategy Insights
Chatting with AI: Can it review its own investment potential?
As each quarter-end approaches, we survey our colleagues for timely newsletter topics. I volunteered to write an article about the investment potential of artificial intelligence (AI). The topic from my peers was along the lines of, “Write an article from the perspective of a wealth manager about the investment potential of AI.”