Economic Innovation Group (EIG), a Washington, DC – based think tank shaped the Investing Opportunity Act which made it to the 2017 Tax Cuts and Jobs Acts (Trumps tax reform legislation). There, it got a new name: the ‘Opportunity Zones’ program, which encompasses nearly 9,000 ‘economically distressed communities’ or “Opportunity Zones” across America. In early 2018, every US Governor designated certain communities as Opportunity Zones in his or her state. In total, there are 8,762 Opportunity Zones that cover about 12% of America’s land mass. They are home to approximately 35 million people with an average poverty rate of 32%.
In a nutshell, The Opportunity Zones program is a new tax incentive established by the US Congress whose goal is to encourage long-term investment in low-income communities across the US. The program gives investors the opportunity to sell their appreciated investments and invest their capital gains in one or more of these Opportunity Zones across the country on a tax deferred basis. Considering America’s […]
From more states legalizing to a boom of new kinds of products, here’s what to expect from the cannabis industry this year. […]
Succinct Summations for the week ending January 4th, 2018
1. Total non-farm payrolls increased by 312k m/o/m, much greater than expected 180k.
2. Stocks (mostly) recovered from a disastrous start to the year; indices tacked on 3-4% Friday;
3. Wages gained 3.2% as more people returned the labor force;
4. Same store sales rose 9.3% w/o/w, up from previous week’s 7.8% increase;
5. PMI services index came in at 54.4, greater than the expected 53.4;
6. December vehicle sales = 17.5m at a SAAR, above the estimate of 17.24m.
1. Home mortgage applications fell a seasonally-adjusted -8.0% w/o/w, down further form previous -7.0% decline.
2. Apple, only recently the world’s biggest company, is now off its highs by ~38%;
3. Number of unemployed rose by 276,000, sending Unemployment rate rose to 3.9%;
4.Jobless claims rose 10k w/o/w, from 221k to 231k.
5. PMI manufacturing index fell from 55.3 to 53.8 in December.
6. December ISM manufacturing index came in at 54.1 for December, missing expected 57.9.
Succinct Summation for the final week of the year!
- Indices rally 4-5% on Wednesday off of deeply oversold levels; Dow jumps 1,000 points as stocks hold gains;
- Same store sales rose 7.8% w/o/w, up from previous week’s 7.1% increase.
- Jobless claims fell 1k w/o/w, from prior revised 217k to 216k.
- FHFA house price index rose 0.3% w/o/w, meeting expectations.
- Chicago PMI came in at 65.4 for December, above the expected 62.4. Chicago fed national activity index rose to 0.22 in November, exceeding expected 0.19.
- Government Shut Down continues as Washington dysfunctionality worsens;
- Consumer confidence index fell 8.3 points in December, from 136.4 to 128.1.
- Pending home sales decreased -0.7% m/o/m, missing the expected 1.5% increase.
- State street investor confidence index fell 2.8 points m/o/m from 82.6 to to 79.8.
- Case-Shiller index rose 5.0% y/o/y, 0.2% lower than previous 5.2% increase.
This is article was contributed from a member of our TWFG network, so we thank them for their contribution. They are a full-service Accounting firm licensed in CA that offers a range of services for business owners, executives, and independent professionals. If you have any questions about this article, or would like to learn more, I would be happy to facilitate an introduction.
If you’re a small business owner that develops a product, you and (or) your CPA should be utilizing Internal Revenue Code Section 41 which offers taxpayers a tax credit for increasing research activities. The research credit for the tax year is, in general, an amount equal to the sum of 20% of the excess (if any) of the qualified research expenses for the tax year over the base amount (the base amount is determined in a method which is beyond the scope of this memorandum).
While China’s economy is far behind in nominal terms at $12.2 trillion, you may recall that the Chinese economy has been the world’s largest when adjusted for purchasing power parity (PPP) since 2016.
The next two largest economies are Japan ($4.9 trillion) and Germany ($4.6 trillion) – and when added to the U.S. and China, the top four economies combined account for over 50% of the world economy.
Our curated list of midweek reads.
- As is always the case, strategists see stocks going higher next year (Irrelevant Investor) see also $14,889,930,106,680: How much companies listed on the world’s stock markets have lost in value since peaking on Jan 28 2018 (Bloomberg)
- The Fed Is Trying to Tell Us Something (Real Time Economics)
- This San Francisco Investor Wants to Revolutionize Private Equity with a Quant Fund for Private Markets. Is He Crazy? (Institutional Investor)
- Dr. Elon & Mr. Musk: Life Inside Tesla’s Production Hell (Wired)
- How the IRS Was Gutted (ProPublica)
- The Revenge of the Chart Watchers. (Institutional Investor)
- Prediction vs. Preparation (A Wealth of Common Sense)
- 50 Reasons Why We Don’t Invest for the Long-Term (Behavioural Investment)
- Sad Santas Confront Empty Malls: Vacant storefronts don’t herald jolly holidays for professional Kriss Kringles (Wall Street Journal) see also Abandoned Frank Lloyd Wright – Tour of Shams Palace, Iran. (Yomadic)
My morning train reads:
- Infographic of the Day: Crunching the numbers on tax costs + local living expenses off of a $100,000 baseline annual salary ($8,333 in monthly net income) (HowMuch)
- GE Powered the American Century—Then It Burned Out: How the company that was once America’s biggest, maker of power turbines, seller of insurance, broadcaster of ‘Seinfeld,’ became a shadow of its former (Wall Street Journal)
- Fine Wine Outperformed Global Equities in 2018 (Barron’s)
- Annuities are Sold, Not Bought (Belle Curve)
- How Generation X Ruined the World: They taught Millennials that self-obsession is the highest mark of cultural capital (Vice)
- The best doesn’t exist. A psychologist explains why we can’t stop searching. (Vox)
(Photo: The Delectable Gaspar Trio and Churro Croissant at Portola Coffee Roasters in SOCO Mix…Portola has 7 current locations, 3 more in the works and is our Portfolio Company at TWFG that will be aggressively expanding throughout Southern CA)
My easy like Sunday morning reads:
- At Goldman Sachs, the David Solomon Era Begins with Subtle but Significant Changes (Vanity Fair)
- Michael Cohen’s New Home (Institutional Investor)
- The Oil Industry’s Covert Campaign to Rewrite American Car Emissions Rules (New York Times)
- Economics: The Discipline That Refuses to Change. Behavioral economics upended the idea that humans act solely in their rational self-interest. So why do most undergrads barely learn anything about the field? (The Atlantic)
- The benefits of this ‘strong economy’ have not reached all Americans (Washington Post)
- Why Trump Can’t Kill the Electric Car (Politico)
- After a Natural Disaster, Is It Better to Rebuild or Retreat?It’s a question that will become only more urgent as climate change continues to fuel extreme weather. (New York Times)
- Which Americans support the Second Amendment? The answer depends on whether whites or blacks have […]