“All of the Above” Multiple Choice Questions & Pivot Points – Nvest Nsights Q3 Newsletter

With the 3Q now complete but the stock market seemingly more choppy since September, investors wonder if the final 3 months of the year and 2022 might offer a resumption of upward trend.  For most, it’s a difficult consideration amid the confluence of BIG Government-related issues ranging from significant spending and tax proposals (infrastructure and social programs), a potential government shutdown (debt ceiling), whether Fed Chair Powell will be reappointed, and more.

In this quarter’s update, “All of the Above” we review the reasons we see for the stock market losing momentum in recent months, September in particular.  We also believe that the Great Lockdown response to COVID will be viewed as a “Pivot Point” in a variety of ways, but including how investors think about inflation, interest rates, and asset allocation.  Related, September 30 marked the 40th anniversary of a secular bull market for bonds.  What might the next 40 look like?

The personal finance discussion this quarter provides a quick summary of what we see are the most likely tax changes coming as a result of current proposals.  As you might imagine, this is a topic arising in most every client conversation this year and we hope you find the quick bullet format helpful.

A printer-friendly version of the full quarterly newsletter, including benchmarking and fund performance data, can be obtained here: Q3 Nvest Nsights

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(Tax) Change is in the Air

It is often said that there are just two certainties in life: Death and Taxes. Or how about “the only constant in life is change”? In 2021, it is hard to recall a client conversation where the topic of potential tax policy changes did not arise. Since COVID, government policy was all about huge stimulus and spending; as we shift our attention to the final quarter of 2021 and beyond, the conversation is increasingly about how all additional spending proposals will be paid for (via taxes – both corporate and personal).

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