When looking to transfer large amounts of assets to future generations, consider selling assets to an intentionally defective grantor trust (IDGT) to potentially create greater tax savings than other gifting strategies.
Schwab Market Update
U.S. equites finished the last session of a volatile week higher, but posted losses on a weekly basis for the sixth-straight time. The moves came as the markets continue to grapple with an expected aggressive Fed monetary policy tightening campaign, which Chairman Jerome Powell reinforced late Thursday. Global sentiment seemed to get some relief after Chinese officials suggested that COVID-related lockdowns—which have been a source of uneasiness—may be set to ease. However, rising interest rates and the U.S. dollar, along with signs of slowing economic growth continued to stymie conviction. On the equity front, Twitter was in focus after Elon Musk suggested his $44.0 billion deal to buy the social media platform is on hold, while Affirm Holdings rallied after posting a smaller-than-expected loss and raised its guidance. In economic news, consumer sentiment fell more than forecasts as inflation worries led to a fresh decade low, but import prices came in cooler than expected. Treasuries were lower to provide a lift to yields, and the U.S. dollar lost ground after a recent run, while crude oil prices rallied, and gold traded to the downside. Europe finished with broad gains and Asia was mostly higher to close out the week.
The economy has slowed amid rising inflation, aggressive monetary policy tightening and persistent global supply chain crises. In turn, the U.S. stock market has weakened.
Congress continues to struggle with bitter partisan divisions that will likely only worsen as we head toward this fall's midterm elections. But rare moments of bipartisanship have cropped up in recent weeks.
Major central banks are hiking interest rates rapidly and shrinking their balance sheets in an effort to "normalize" policy. The question hanging over the market is, "What is a normal policy rate?"
Intraday volatility continues as traders guess the market’s next move.
Making tax-efficiency part of your investing strategy can help lower your tax bill.
What our experts think about the recent stock market drop.