With the year-end drawing near, many US taxpayers are starting to think about how much to give to tax-deductible causes. But too often, even financially sophisticated people miss a simple way to boost the tax benefit from their charitable donations: by giving appreciated securities, rather than cash. (more…)
Plans for a new Shanghai-Hong Kong trading system are among three developments that we expect will give a boost to China’s equity markets in the medium to long term. So despite concern about the economic outlook, now could be the time to begin rethinking China from an investment perspective. (more…)
With a US housing recovery in full swing, this may be a good time for investors to consider securities backed by residential real estate. We think they’re an attractive way to diversify exposure to high-yield bonds and other risk-seeking assets.
In late 2013, the 10-year US Treasury yield hit 3%, spooking investors who thought the bond bubble was bursting. Prognosticators urged investors to abandon bonds. And then—they waited. (more…)
The muni market seems to be returning to normal after major outflows last summer, though several potential hot-button issues could still spook investors. We don’t think these represent major risks to market returns or properly positioned portfolios. (more…)
Tara Thompson Popernik (pictured) and Robert Dietz
With tax-exempt income from US municipal bond portfolios still near historic lows, investors spending from their portfolios can no longer get the income they need by simply increasing their allocation to high-quality, intermediate-duration bonds. As a result, many investors today are chasing yield into dangerous territory. (more…)
Stuart Rae (pictured) and Rajeev Eyunni
As developed-market equities continue to scale multiyear highs, their emerging-market counterparts—most notably Asian ex Japan stocks—have been more hesitant. Is it time for investors to take a closer look at the region? (more…)
Want to reduce tax on your investment income? Avoid sales of appreciated stocks held less than a year. Here’s how it might have helped some disappointed Facebook shareholders earlier this year.
Paul Robertson and Tara Thompson Popernik
Many taxable US investors will face higher capital gains tax bills for 2014 than for 2013, although market returns are likely to be more modest. The reason isn’t higher tax rates: US tax rates were up in 2013, too. The reason is large capital gains and limited losses. (more…)
Seth J. Masters and John McLaughlin
Many investors with little appetite for risk think cash is the safest asset class. After all, if you have no investments, you have no investment risk. That’s true enough, but it’s reassuring only if you ignore inflation and taxes. And of course, most individuals do pay taxes and everyone experiences inflation. (more…)