Q: What was some of the good news for investors this week?
A: Wage push inflation is expected to decline with the Job Openings & Labor Turnover Survey (JOLTS) declining to 8.8 million down from a peak of 11.8 million and the lowest since March 2021. Positive money flows could indicate that the Federal Reserve will not raise interest rates in September and potentially lower rates sooner.

Q: What happens to the Net Present Value of Future Cash Flows when cash interest rates drop?
A: The calculation of Net Present Value of Future Cash Flows is divided by a lower time value of money which results in a higher valuation.

Q: At what point during the year is it possibly best for investors to harvest tax losses from taxable accounts?
A: Generally, Mid-year or after a major rally are ideal times to upgrade losing positions for stronger positions based upon Year to Date performances. The potential advantage for investors comes in Q4 when tax loss selling usually reaches its apex & allows for the addition of bargains instead of selling at a low point for tax planning.

Q: Is Tax Harvesting automatically done in The McGowanGroup’s managed accounts for investors?
A: The McGowanGroup prides itself on working with investor’s specific tax situations to maximize advantageous outcomes. In other words, YES!

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