This year has brought us into a new economic environment. We are shifting from a closed economy to businesses reopening and gaining momentum as we recover from the past year. But with that momentum has come a bevy of fear and concern. As a result, investors should not be worried or paranoid, but they should be prepared. In today’s podcast, Wes shares tips on how investors can combat what he calls the three-headed monster of higher inflation, rising interest rates, and tax increases.
Throughout this episode, Wes analyzes the historical correlation between tax rates, capital gains, stocks and addresses why some categories of stocks fare better when inflation or interest rates rise. Of course, historical events in markets may not repeat exactly the same, but many events show similarities. As investors, if we stick to a few rules of thumb, we may be able to weather any market conditions that come our way.
Disclosure: This information is provided to you as a resource for educational purposes and as an example only and is not to be considered investment advice or recommendation or an endorsement of any particular security. Investing involves risk, including the possible loss of principal. There is no guarantee offered that investment return, yield, or performance will be achieved. There will be periods of performance fluctuations, including periods of negative returns and periods where dividends will not be paid. Past performance is not indicative of future results when considering any investment vehicle. The mention of any specific security should not be inferred as having been successful or responsible for any investor achieving their investment goals. Additionally, the mention of any specific security is not to infer investment success of the security or of any portfolio. A reader may request a list of all recommendations made by Capital Investment Advisors within the immediately preceding period of one year upon written request to Capital Investment Advisors. It is not known whether any investor holding the mentioned securities have achieved their investment goals or experienced appreciation of their portfolio. This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. This information is not intended to, and should not, form a primary basis for any investment decision that you may make. Always consult your own legal, tax, or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.