INSIGHTS

The purpose of the DHG Wealth Advisors quarterly newsletter is to help you understand the stock market in ways not always covered by the financial media. We do this by focusing on both the core tenets of our investment philosophy, as well as examining recent market activity. In our Q121 newsletter, Sarah Charles addresses the appeal of 21st century financial “Siren songs,” including cryptocurrencies, while Bill Laird explains what is driving the ongoing rally and offers clients some perspective on recent returns.

Recent market performance has brought to the forefront of investors’ minds the darlings of the technology and media sectors: Facebook, Amazon, Netflix, Microsoft, Apple and Google, collectively referred to as FANMAG. Their performance has been noteworthy and matches those of some previous market darlings like Exxon, General Electric or AT&T during their peaks. However, just like previous market leaders, recent results are not predictive of future individual or sector performance versus other available opportunities.

Can the winner of the Super Bowl predict the direction of the Stock Market? It might sound crazy, but it has accurately predicted the direction of the Stock Market 40 of the last 54 years. Join us as we put the famed indictor to the test.

The incredible rise and fall of GameStop is a remarkable story. (If you don't think so, imagine hopping in a time machine and trying to explain this to someone even 20 years ago.) However, many investors have real concerns that this is just another example of the Stock Market being crazy and not working property.

Since the end of January, #YOLO has been a rallying cry on internet message boards where amateur investors have driven up stock prices for video game retailer GameStop and movie theatre chain AMC. While everyone does have opportunities to build wealth via the markets, this particular group of fresh investors are only half-right about their investment strategy.

Have you ever heard of the platonic dish? It's the idea that there is only one perfect way to make a meal. That idea has faded in the food industry -- it's the reason we have a seemingly infinite variety of options at the grocery store and the "have it your way" mentality of many restaurants -- but it has been slow to catch on in personal finance.

By all counts, 1896 was a significant year. Utah was admitted as the 45th U.S. state. The first X-ray photograph was taken. Puccini's La Bohème premiered in Turin while Oscar Wilde's Salomé premiered in Paris. Stanford and California played the first known women's college basketball game. Henry Ford finalized development of his first automobile – the Ford Quadricycle. And in May of that year, 12 stocks were chosen to form the Dow Jones Industrial Average (DJIA).

The President signed the Consolidated Appropriations Act (CAA) into law on Dec. 27, 2020. One important element of this legislation is that it allows employers that took out a Paycheck Protection Program (PPP) loan to also claim the Employee Retention Credit (ERC). In addition, the type of expenses that qualify for taxpayer forgiveness has been expanded.

Roth conversions can offer significant long-term tax benefits. Join Sarah & Dave as they explore the basics of how this planning strategy works, the potential benefits, and the important tradeoffs to consider when deciding if this strategy is right for you.

Attached is a summary of key tax and personal planning numbers for 2021.