Dan Callan

On 8/16/2022 President Biden signed the Inflation Reduction Act into law which encompassed a wide range of topics that arise during client conversations. We plan to touch briefly on various aspects of this large fiscal package because these changes will impact clients directly and indirectly. One such example of a direct financial impact are the tax credits on electric vehicles (EVs). There are several Indirect impacts to portfolios via new tax policies on corporations. Today we discuss the 1% surcharge on corporate buy backs.

One closely watched macroeconomic data point that is receiving more attention than usual is Initial Weekly Jobless Claims. Many investors follow the monthly job data such as ADP Private Payrolls, the Unemployment Rate, and change in Nonfarm Payrolls. However, in times of economic crisis we believe it is important to increase focus on the weekly data as well. While reported weekly, investors frequently focus on the 4-week moving average to create a smoother “curve” to track the trendline. As of last Thursday, 4/17, the 4 week moving average was 5,786,500. On March 13th, the number was 232,000.