Economic Update for 10-17
- Rudy Thomas
- Oct 17
- 2 min read
For those wondering why you have not seen an Economic Update in the past few weeks, the shutdown of the U.S. Government that began on October 1st has been disruptive to the release of economic data during this time. Government agencies are primarily responsible for gathering the data used to produce the various economic releases we follow on a constant basis to help formulate our economic thought process and forecasts. We are continuing to follow economic trends, as best we can, during this period. We still have access to several outside sources that allow us to formulate our economic thoughts as it relates to our investment portfolios. In this regard, we have remained invested in the equity market at the levels we were at prior to the government shutdown. While the equity market has been somewhat volatile, overall, it is down less than 1% during this period. On the fixed-income side, the 10-yr. treasury yield has now fallen below 4% for the first time since September of last year. We have been consistently adding to our bond holdings, and this has proven to be an attractive investment so far this year.
I will add to the above, two coming events before year-end. First, we will be looking to offset realized gains we have initiated in our portfolios that are subject to tax considerations. This is one of the primary ways we work with our clients to minimize any taxable amounts within our control. Secondly, we will be making sure any RMD’s ( required minimal distributions) that must be taken from various retirement accounts are done prior to year-end. This is subject to age limits of the beneficiary and eliminates the potential of a penalty imposed by the IRS for not taking such a distribution.
Hopefully, the above gives each of you a better understanding of how we are continuing to operate during this difficult period. We are now in the third week of the government shutdown, and it appears it will last at least until next week. We will certainly make you aware of any changes to the above as they occur.
