Seth is back with another installment of “What’s New(s)?” highlighting the topics that he’s following closely which might have an impact on you, as well as some others that he thinks you might find interesting or fun.
Legislation has been introduced in the senate to eliminate the beneficial tax treatment of carried interest. Private equity managers use the carried interest tax loophole to defer income and recharacterize their income from ordinary income to more advantageous capital gains rates.
Citi analyst sees a 10% market decline starting next month. Meanwhile Goldman Sachs raised their S&P 500 price target to 4700 by year-end. Who will be right??? Probably neither!!!
In addition to the Federal estate tax, 17 states (and Washington DC) currently charge their own estate or inheritance tax. Is your state one of them?
President Biden issued an executive order encouraging the FTC to limit or restrict non-compete agreements. Such a change would have a significant impact on many businesses, both small and large.
The US Dept of Education will forgive federal student loans for borrowers who are permanently disabled. The Biden administration continues to push for more widespread loan forgiveness.
ARK Invest’s Cathie Wood made a name for herself in 2020 as one of the hottest invest managers out there when her flagship fund ARKK posted a total return for the year for 152.8%. But it seems 2021 has been a year of “reversion to the mean” for Wood now that ARKK is down -6.98% YTD (whereas the S&P 500 is up 19.37%). It seems many believe the negative returns for ARKK will continue as ~13%+ of the ETF’s float has been shorted by other investors.