INSIDE THIS EDITION:

CPI Report and Infrastructure Sector Update
10 Most Asked Tax Questions so Far in 2021
Estate Tax Law and Strategy Changes are Coming

You may recall that we wrote about the case for including infrastructure in portfolios a couple of months ago. We discussed how it was an attractive asset class for income potential and exhibited some hedging characteristics that could help a portfolio in an inflationary environment.

It now appears we are seeing the first hints of inflationary pressure in headline numbers. On Thursday, we received updated consumer price index numbers that showed a climb of 0.6% over last month’s reading, led by increasing costs for used cars, household furnishings, airfare, and apparel.

For some longer-term context, this is a 5% increase for the month of May compared to May of last year with the core CPI, which excludes food and energy, up 3.8% from a year ago. This is not only ahead of expectations but also the most significant core CPI increase over 12 months in the last 30 years or so. 

However, we do not know if this is a transitory bump in inflation or something that will stick around. The verdict remains out, and we likely won’t know for some time. When it comes to positioning portfolios for the possibility of inflation, investors must plan for a range of scenarios. We have advocated doing this by including some exposure to asset classes like infrastructure, which are historically well positioned to absorb the effects of rising price levels. Infrastructure has typically outperformed broad-based equities during inflationary periods. 

So far this year, we have seen a significant performance dispersion within the infrastructure asset class, with economically sensitive sectors outpacing the passenger-focused and utilities sectors, in part due to the reflation trade that has dominated over the last several months. 

While the reflation trade remains a powerful driver of performance and is likely to continue, for some infrastructure sectors like freight rails, airports, telecom towers, and utilities, infrastructure remains attractive even outside the reflation story.

Source: Cohen & Steers

This is true especially in North America, which has seen a strong outlook for freight rail volumes and increasing air passenger volume growth. Moreover, this asset class is likely to be further supported by both attractive valuations and the prospect of a bipartisan infrastructure spending bill. 

Weekly Global Asset Class Performance


10 Most Asked Tax Questions so Far in 2021

Written by Scott Bishop, MBA, CPA/PFS, CFP®

At Avidian Wealth, we hear from our clients frequently about pending tax law changes. If you have followed my articles over the years, you know that I often write about taxes and their impact on your estate, retirement and overall financial planning; several of these articles are referenced at the end of this piece.

With all the tax law changes we are considering as “pay for’s,” and in terms of having Americans “Pay their Fair Share,” we receive many calls from clients asking, “What should we do?” At this point, there is no immutable law and no solid guidance as to what will pass and when any changes will be effective, but we believe it is helpful to share some of our recommendations based on the ten most asked questions that we hear. But of course, before taking any action, please check with your tax and financial planning team!

Click Here to Read the Entire Article


Estate Tax Law and Strategy Changes are Coming

Written by Scott Bishop, MBA, CPA/PFS, CFP®

At Avidian, we hear from our clients frequently about the pending tax law changes. If you have followed my articles over the years, you know that I often write about taxes and their impact on your estate, retirement, and overall financial planning – several of the articles are referenced at the end of this piece.

Currently, many tax changes are being considered that will change the estate and gift tax exemption amounts (the amount you can exclude from estate taxes at your death or during lifetime gifting), the tax rate, and the possibility of the government legislatively ending many of the strategies we have used for decades (that have been approved by the IRS and/or through tax court cases). For more information on these specific issues, I have discussed many of these changes in previous articles listed at the bottom of this article.

Click Here to Read the Entire Article

Additional Articles

INSIDE THIS EDITION: CPI Report and Infrastructure Sector Update10 Most Asked Tax Questions so Far…

INSIDE THIS EDITION: CPI Report and Infrastructure Sector Update10 Most Asked Tax Questions so Far…

Disclaimer:

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Avidian Wealth Solutions, LLC), or any non-investment related content, referred to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Avidian Wealth Solutions, LLC. Please remember to contact Avidian Wealth Solutions, LLC, in writing, if there are any changes in your personal/financial situation or investment objectives to review/evaluating/revising our previous recommendations and/or services. Avidian Wealth Solutions, LLC is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of Avidian Wealth Solutions, LLC’s current written disclosure statement discussing our advisory services and fees continues to remain available upon request.

Financial Planning and Investment Advice offered through Avidian Wealth Solutions (Avidian), a registered investment advisor. Avidian does not provide tax or legal advice and the information presented here is not specific to any individual’s circumstances. To the extent that this material concerns tax matters or legal issues, it is not intended or written to be used, and cannot be used, by a taxpayer to avoid penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

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