Sunday, May 26, 2024

News and Ideas Worth Sharing

Allen Harris

Allen Harris is the founder, CEO and CIO of Berkshire Money Management based in Dalton, Massachusetts. He is a Certified Exit Planner, Certified Value Builder and Certified Business Valuation Specialist, and specializes in working with business owners intending to accelerate their growth and/or transition. Harris is also the author of 'Build It, Sell It, Profit: Taking Care of Business Today to Get Top Dollar When You Retire,' publishes the Berkshire Business Confidence Index, and hosts the BMM Business Roundtable. He built and sold his previous business, the Navigator Newsletters Group, a financial publication with 16,000 paid subscribers (one of the five largest of its era). Beyond his professional work, Harris is passionate about the well-being of animals. He is an avid supporter of spay and neuter efforts and animal rescue. Additionally, he is a strong advocate for both economic revitalization and the arts in the Berkshires, including First Fridays Artswalk, Shakespeare in the Park, Alchemy Initiative, Tanglewood, Jacob’s Pillow and other nonprofit organizations.

written articles

CAPITAL IDEAS: Wall Street analysts remain bullish and what you need to know about inherited IRAs

I would be frustrated with treading water in stocks for much of 2025, but I would not be in a hurry to sell my equity positions.

CAPITAL IDEAS: Are higher interest rates helping the economy?

Recessions in the U.S. occur fairly regularly despite the level of interest rates. This begs the question: Is the U.S. economy booming despite higher interest rates or because of them?

CAPITAL IDEAS: When is ‘good news’ bad news for the stock market?

I think that this particular good news—more jobs—will be good for the economy and won’t interfere with the Fed's plans for interest rates (whatever those plans may be).

CAPITAL IDEAS: Your financial advisor doesn’t want you to know about these conflicts of interest

For financial advisors, generally, you are all amazing people with a passion for helping people. I celebrate you. However, we are just humans. Myself included. Advisors should be aware of possible conflicts and then create a decision-making process to avoid those conflicts.

CAPITAL IDEAS: What are Americans’ savings behaviors?

It has been a fortuitous stretch for investors. Through December 31, 2023, their average IRA balances increased 18 percent and 31 percent over a five-year and 10-year period, respectively.

CAPITAL IDEAS: What are the unknown variables that could sink your portfolio?

Consumer spending has hit record levels and is expected to remain resilient this year, underpinned by household balance sheets, moderating inflation, robust job growth, and the associated income gains. However, I will keep my eye out for those variables that could knock down GDP—and your investments—if they turn.

CAPITAL IDEAS: The Federal Reserve should not cut interest rates this year

I hold a correlative unpopular opinion: The stock market would continue to do well in 2024 even if the Fed did not cut rates.

CAPITAL IDEAS: Will the next president ruin the economy?

It is that time of year when investors start thinking about selling stocks as they contemplate the end of the world brought on by whoever will occupy the White House for the next four years.

CAPITAL IDEAS: How can you invest in artificial intelligence?

Nvidia’s stock is up more than 200 percent from a year ago, fueled by the rush of corporate America to join the AI race. According to FactSet, the mention of AI during S&P 500 company earnings calls has spiked.

CAPITAL IDEAS: Is the stress at New York Community Bank a sign of more trouble to come?

I wouldn’t go so far as to suggest that the Fed has had no influence over this last leg of the rally, but, clearly, something else is happening. I believe the stock market is reacting to improved corporate earnings.

CAPITAL IDEAS: How much will the Federal Reserve cut interest rates?

Spoiler alert: The Fed will cut interest rates a lot in 2024, at least according to the Fed’s own expectations.

CAPITAL IDEAS: Should you sell your stocks after the market hits an all-time high?

The nuanced answer to that question, as always, is “it depends.” It depends on tax consequences. It depends on cash needs. It depends on suitable alternatives. It depends on the current investment composition.

CAPITAL IDEAS: Recession concerns are fading

Although sentiment is high relative to months ago, its current level remains historically consistent with a recession.

CAPITAL IDEAS: The most interesting things that have happened in 2024 (so far)

While not a tailwind, 2024’s momentum does not suggest a headwind for the entire year.

CAPITAL IDEAS: Owe the IRS less in 2024 — how the rich avoid taxes and you can, too

Excerpts below from "Don’t Run Out of Money in Retirement" discuss the broader use of these so-called billionaire strategies and how many of us can use them despite not yet achieving an ultra-rich status.

CAPITAL IDEAS: The charts that defined the markets for 2023 and how they will shape 2024

History doesn’t always repeat itself—at least not immediately. Often, a reversion to the mean occurs.

The Edge Is Free To Read.

But Not To Produce.