NEWS FLASH
(Note: Some of the "News Flash" links in this section may require a subscription. We intentionally provide a short, easy-to-read summary in the chance you can't access the full story.)
😑 Market Mood Swing: Investor pessimism hits highest level since 2023, with 47.3% expecting stock prices to fall. The previously unstoppable bull market faces headwinds from Trump's tariff threats, regulatory uncertainty, stubborn inflation, and fading hopes for interest rate cuts. Some investors are repositioning portfolios—moving from growth to value stocks—while January saw net outflows from U.S. equity funds. Experts note this pessimism could actually be a contrarian buy signal, with one analyst describing the current sentiment as "not bearish, just not bullish." After two years of exceptional returns, perhaps investors were simply due for a reality check.
💰 Tax Cap Showdown: The $10,000 SALT deduction limit is set to expire this year, leaving taxpayers in high-tax states wondering what comes next. Congress is debating three scenarios: modifying the cap (possibly to $20,000 for couples), letting it expire completely, or making it permanent. For high-income itemizers, the stakes are significant—a modified $100,000 cap could mean a $37,000 tax break for singles. Financial advisors recommend scheduling year-end tax planning meetings once policy is finalized, potentially deferring state tax payments to maximize deductions, or exploring pass-through entity structures for business owners. The standard deduction's future and AMT thresholds will further complicate the calculus for taxpayers navigating this shifting landscape.
RETIREMENT ARTICLES
What We're Reading
CHART OF WEEK
Normal Programming: Stock market dips of 1% or more are surprisingly common, averaging 31 occurrences each year since 1990. So far in 2025, we've already seen 11 of these days. While these fluctuations can feel stressful, they're simply part of investing. History consistently rewards those who resist the urge to react to daily financial drama, instead allowing their investments to ride the market's long-term upward trajectory. Your investment strategy should mirror your retirement timeline, not today's CNBC headlines.