Dear Friends:

Voters Guide for the Election

Just kidding!  We aren’t going that far – there are plenty of those out there if you need one.  However, the November election is top of mind for many of course and with good reason.  As we analyze the agendas of the presidential candidates, there is a stark difference in the economic and tax policies between the two.  There are many significant differences in personal and business tax rates, but perhaps the most notable item relative to investment strategies is the proposal to tax unrealized capital gains.  While we don’t believe it’s likely, if it were enacted, it could trigger major market disruptions across all types of assets potentially forcing sales in order to pay taxes where the significant cash or liquidity needed is not readily available.

Another popular question is “how will the November elections effect the markets?”  Interestingly, analysis of the historical data shows that the election of Democrat vs. Republican shows no discernable statistical difference in returns over the next 4 years between the two parties (see chart below courtesy of Dimensional Funds). While it’s difficult to predict with 100% certainty, we do believe it’s very reasonable to assume there will be volatility that may yield some opportunities to maintain “buy low/sell high” discipline and take advantage of what the market gives us without speculating.  In addition, there are many tax and estate strategies we will be discussing with clients and professionals, so feel free to reach out if you have questions.

Altruist Acquisition of SSG and Upgrade from SSG/Pershing (Schwab Clients Not Impacted)

SSG/Pershing is one of the custodians (along with Schwab) we use to house funds and execute and clear equity and fixed income trades.  SSG was acquired by Altruist which is an innovative new custodian with lower costs and more efficiency, and the official transition date is November 1^st.  Clients on the SSG/Pershing platform will receive notices, though there is nothing you need to do.  We are still the advisor on your account and the investment strategies will remain consistent.  The primary difference you will see is that your NetXInvestor login (for those that use it) will be replaced with a new login from Altruist.  As always, please reach out if you have questions and we are extremely grateful for each of you and thank you for your partnership!