Alicia Allen, Author at Elsass Financial Group

Market Commentary | September 8th, 2025

by Alicia Allen | Sep 8, 2025 | Blog, Market Commentary

Weekly Market Commentary

September 8th, 2025

Week in Review…

Last week was pivotal for labor market data, with several key reports shaping investor sentiment. Markets also digested fresh survey data as participants assessed the economic outlook.

Labor Market Insights
On Wednesday, the July Job Openings and Labor Turnover Survey (JOLTS) report offered a closer look at labor demand. Headline job openings came in below expectations, continuing the trend of softness in the job market. However, voluntary quits (a proxy for worker confidence), held steady at 3.2 million (2.0%). Notably, quits increased in professional and business services, signaling resilience in those sectors, while declines in construction and transportation, warehousing, and utilities pointed to weakness elsewhere.

Friday brought further disappointment as August Nonfarm Payrolls rose by just 22,000, well below the consensus estimate of 75,000 and the prior month’s 79,000. The unemployment rate ticked up to 4.3%, its highest level since July 2024.

Productivity and Cost Trends
There were some bright spots. Q2 annualized Nonfarm Productivity exceeded expectations, suggesting improved labor efficiency, which is an encouraging sign for wage growth without fueling inflation. Additionally, quarter-over-quarter Unit Labor Costs rose only 1.0%, below the 1.2% forecast and sharply lower than the prior quarter’s 6.9%. As Unit Labor Costs are a leading indicator of inflation, markets will watch closely to see if this trend persists.

Sentiment and Survey Data
Markets also received key sentiment indicators from S&P Global and the Institute for Supply Management (ISM). S&P Global’s Manufacturing and Services Purchasing Managers’ Indices (PMIs) came in below expectations but remained above 50, signaling continued expansion, albeit at a slower pace than anticipated. ISM data painted a mixed picture: Manufacturing stayed in contraction, while Services remained in expansion. Two notable ISM subcomponents were Prices and Unemployment. Price pressures eased across both sectors, while employment sentiment weakened, reinforcing concerns about labor market softness.

Economic and Capital Markets Dashboard

Week Ahead…

If last week’s theme was employment, this week’s focus shifts squarely to inflation. Investors will digest key price data for both producers and consumers, inflation expectations, and several important bond auctions.

Inflation Data in Focus

On Wednesday the U.S. Bureau of Labor Statistics will release headline and core Producer Price Index (PPI) data, offering insight into input costs for raw, semi-finished, and finished goods and services. Investors will be watching for signs of tariff-related cost pressures and whether businesses are absorbing these costs or passing them on to consumers.

Thursday the spotlight shifts to headline and core Consumer Price Index (CPI) data. While PPI shows upstream price trends, CPI will reveal how much of those costs have filtered through to consumers. Core CPI in particular will be closely monitored as a gauge of underlying inflationary pressures.

Consumer Sentiment and Inflation Expectations

On Friday, the University of Michigan will release its September preliminary survey, including 1-year and 5-year inflation expectations, as well as consumer sentiment and expectations. These metrics are critical because consumer confidence often influences spending behavior, a key driver of economic growth.

Quick Hitters

Treasury Auctions: 3-, 10-, and 30-year bond auctions will take place. The 10-year note remains a key benchmark for mortgage rates and overall borrowing costs, and demand at these auctions will provide insight into investor appetite for U.S. debt.

Energy Outlook: Monthly reports from the International Energy Agency (IEA) and OPEC will be released. While energy prices are excluded from Core CPI, they remain a significant factor for consumers and can influence headline inflation and consumer sentiment.

Economic Indicators:

CPI: Consumer Price Index measures the average change in prices paid by consumers for goods and services over time. Source: Bureau of Labor Statistics.
Core CPI: Core Consumer Price Index excludes food and energy prices to provide a clearer picture of long-term inflation trends. Source: Bureau of Labor Statistics.
PPI: Producer Price Index measures the average change in selling prices received by domestic producers for their output. Source: Bureau of Labor Statistics.
Core PPI: Core Producer Price Index excludes food and energy prices to provide a clearer picture of long-term inflation trends. Source: Bureau of Labor Statistics.
PCE: Personal Consumption Expenditures measure the average change in prices paid by consumers for goods and services. Source: Bureau of Economic Analysis.
Core PCE: Core Personal Consumption Expenditures exclude food and energy prices to provide a clearer picture of long-term inflation trends. Source: Bureau of Economic Analysis.
Industrial Production: Measures the output of the industrial sector, including manufacturing, mining, and utilities. Source: Federal Reserve.
Mfg New Orders: Measures the value of new orders placed with manufacturers for durable and non-durable goods. Source: Census Bureau.
Durable New Orders: Measures the value of new orders placed with manufacturers of durable goods. Source: Census Bureau.
Durable Inventories: Measures the value of inventories held by manufacturers for durable goods. Source: Census Bureau.
Consumer Confidence (CB, 1985=100): Measures the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. Source: Conference Board.
ISM Manufacturing Report: Measures the economic health of the manufacturing sector based on surveys of purchasing managers. Source: Institute for Supply Management.
ISM Non-Manufacturing Report: Measures the economic health of the non-manufacturing sector based on surveys of purchasing managers. Source: Institute for Supply Management.
Leading Economic Index: Measures overall economic activity and predicts future economic trends. Source: Conference Board.
Building Permits (Mil. of Units, saar): Measures the number of new residential building permits issued. Source: Census Bureau.
Housing Starts (Mil. of Units, saar): Measures the number of new residential construction projects that have begun. Source: Census Bureau.
New Home Sales (Mil. of Units, saar): Measures the number of newly constructed homes sold. Source: Census Bureau.
SA: Seasonally adjusted.
SAAR: Seasonally adjusted annual rate.

Market Indices & Indicators:

S&P 500: A market-capitalization-weighted index of 500 leading publicly traded companies in the U.S., widely regarded as one of the best gauges of large U.S. stocks and the stock market overall.
Dow Jones 30: Also known as the Dow Jones Industrial Average, it tracks the share price performance of 30 large, publicly traded U.S. companies, serving as a barometer of the stock market and economy.
NASDAQ: The world’s first electronic stock exchange, primarily listing technology giants and operating 29 markets globally.
Russell 1000 Growth: Measures the performance of large-cap growth segment of the U.S. equity universe, including companies with higher price-to-book ratios and growth metrics.
Russell 1000 Value: Measures the performance of large-cap value segment of the U.S. equity universe, including companies with lower price-to-book ratios and growth metrics.
Russell 2000: A market index composed of 2,000 small-cap companies, widely used as a benchmark for small-cap mutual funds.
Wilshire 5000: A market-capitalization-weighted index capturing the performance of all American stocks actively traded in the U.S., representing the broadest measure of the U.S. stock market.
MSCI EAFE Index: An equity index capturing large and mid-cap representation across developed markets countries around the world, excluding the U.S. and Canada.
MSCI Emerging Market Index: Captures large and mid-cap representation across emerging markets countries, covering approximately 85% of the free float-adjusted market capitalization in each country.
VIX: The CBOE Volatility Index measures the market’s expectations for volatility over the coming 30 days, often referred to as the “fear gauge.”
FTSE NAREIT All Equity REITs: Measures the performance of all publicly traded equity real estate investment trusts (REITs) listed in the U.S., excluding mortgage REITs.
S&P U.S. Aggregate Bond Index: Represents the performance of the U.S. investment-grade bond market, including government, corporate, mortgage-backed, and asset-backed securities.
3-Month T-bill Yield (%): The yield on U.S. Treasury bills with a maturity of three months, reflecting short-term interest rates.
10-Year Treasury Yield (%): The yield on U.S. Treasury bonds with a maturity of ten years, reflecting long-term interest rates.
10Y-2Y Treasury Spread (%): The difference between the yields on 10-year and 2-year U.S. Treasury bonds, often used as an indicator of economic expectations.
WTI Crude ($/bl): The price per barrel of West Texas Intermediate crude oil, a benchmark for U.S. oil prices.
Gold ($/Troy Oz): The price per troy ounce of gold, a standard measure for gold prices.
Bitcoin: A decentralized digital currency without a central bank or single administrator, which can be sent from user to user on the peer-to-peer bitcoin network.

This content was developed by Cambridge from sources believed to be reliable. This content is provided for informational purposes only and should not be construed or acted upon as individualized investment advice. It should not be considered a recommendation or solicitation. Information is subject to change. Any forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice. The information in this material is not intended as tax or legal advice.

Investing involves risk. Depending on the different types of investments there may be varying degrees of risk. Socially responsible investing does not guarantee any amount of success. Clients and prospective clients should be prepared to bear investment loss including loss of original principal. Indices mentioned are unmanaged and cannot be invested into directly. Past performance is not a guarantee of future results.

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange.

Securities offered through Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC, and investment advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Both are wholly-owned subsidiaries of Cambridge Investment Group, Inc. V.CIR.0925

Market Commentary | March 17th, 2025

by Alicia Allen | Mar 17, 2025 | Market Commentary

Week in Review…

Market indices continued to decline lower as markets continue to navigate the impact of tariffs and softening economic growth.

The S&P 500 declined by –2.27%
The Dow Jones Industrial Average declined by –3.07%
The tech-heavy Nasdaq declined by –2.43%
The 10-Year Treasury yield closed at 4.31%

A major theme from last week’s economic reports was inflation. Despite a tumultuous week for stock prices, February’s inflation readings came in lower than expected. On Wednesday, the U.S. Bureau of Labor Statistics reported that both headline Consumer Price Index (CPI) and Core CPI rose by 0.2%, compared to the expected 0.3%. This report counterbalances the unexpectedly higher inflation report from last month, with year-over-year core CPI at 3.1% versus 3.3% previously. Additionally, Thursday’s Core Producer Price Index (PPI) retreated by 0.1%, against an expected increase of 0.3%. This decline may result in wider profit margins for producers and lower prices for consumers. Reflecting these lower inflation numbers, yields on 3-, 10-, and 30-year Treasuries fell across all maturities compared to last month’s auction.

However, there appears to be a disconnect between the actual inflation being transmitted through the economy and consumer sentiment regarding inflation. On Monday, consumer inflation expectations rose to 3.1%, higher than the previous couple of months’ 3.0%. The report also noted that the share of households expecting a worse financial situation one year from now increased to 27.4%, its highest level since November 2023. On Friday, the preliminary University of Michigan Inflation Expectations report echoed this sentiment, with both 1- and 5-year expectations exceeding last month’s readings (4.9 versus 4.3 and 3.9 versus 3.5, respectively). Despite these inflation concerns, consumers do not anticipate an increase in production, as the University of Michigan report revealed lower consumer sentiment and expectations, with both indexes dropping more than 10% month-over-month.

In other news, Tuesday’s Job Openings and Labor Turnover Survey (JOLTS) report for January revealed higher-than-expected job openings, and Thursday’s initial jobless claims and continuing jobless claims reports also came in better than expected. Continuing jobless claims have shown a positive trend, with fewer claims in five of the last seven weeks. Overall, the markets are grappling with the divergence between strong current data and uncertain future expectations.

Week Ahead…

The major announcement to watch this week is scheduled for Wednesday when the Federal Open Market Committee (FOMC) concludes its two-day meeting to decide the next steps for monetary policy. While the meeting itself is not expected to lead to any significant changes – current market predictions suggest a 99% probability that the Fed will maintain the current interest rates – Fed Chair Jerome Powell’s reassurances could play a crucial role in calming investor anxieties amid the volatile markets we have been experiencing over the past couple of weeks. His economic outlook might offer the necessary comfort to the market.

In terms of economic data, the focus will shift to the real estate sector next week. On Monday, the home builder confidence index will be released, followed by housing starts and building permits on Tuesday. Thursday will bring the existing home sales and the regular initial jobless claims report. These indicators will offer valuable insights into the health of the housing market and broader economic conditions.

Weekly Market Insights – April 22, 2024

by Alicia Allen | Apr 22, 2024 | Blog

Weekly Market Insights: Fed And Middle East Conflict Diminish Stocks

Presented by Elass Financial Group

Stocks fell for a third straight week, as Fed Chair Jerome Powell’s mixed but upbeat message could not offset the anxiety caused by the Middle East conflict.

Stocks Retreat

Markets began the week rattled by further escalation in the Middle East over the weekend. A bit of good news punctuated an otherwise sour Monday, as a stronger-than-expected retail sales report showed consumers were spending despite rising inflation.^1,2

On Tuesday, remarks from Fed Chair Jerome Powell indicated a shift in thinking—from being confident to not-so-confident about interest rate cuts in 2024. He said rates might need to stay higher until the Fed meets their 2% inflation target.^3,4

On Friday, the markets saw further declines, but investors were somewhat reassured by the perception that Thursday’s retaliatory actions in the Middle East were restricted in scope.⁵

^{Source: YCharts.com, April 20, 2024. Weekly performance is measured from Monday, April 15, to Friday, April 19.}
^{ROC 5 = the rate of change in the index for the previous 5 trading days.}
^{TR = total return for the index, which includes any dividends as well as any other cash distributions during the period.}
^{Treasury note yield is expressed in basis points.}

Silver Linings

When stocks are in a downtrend, it’s important to keep perspective and realize that markets move in cycles. Here are a couple of bright spots from last week and perhaps some good news that may influence trading in the week ahead:

While Chair Powell said last week that the Fed may keep rates higher for longer, he also said the Fed does not intend to raise rates for now.
Despite inflation concerns, individuals were in a spending mood in March. Retail sales increased 0.7% for the month, more than twice the consensus forecast.
“Earning season” picks up during the next four weeks. For the week ending April 26, more than 800 companies will give updates on business conditions in Q1.⁶

This Week: Key Economic Data

Tuesday: PMI Composite. New Home Sales.

Wednesday: EIA Petroleum Status Report. Durable Goods. Survey of Business Uncertainty.

Thursday: Gross Domestic Product (GDP). International Trade in Goods (Advance). Jobless Claims. Pending Home Sales.

Friday: Personal Income & Outlays. Consumer Sentiment.

^{Source: Investors Business Daily – Econoday economic calendar; April 18, 2024
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Monday: Verizon Communications Inc. (VZ)

Tuesday: Tesla, Inc. (TSLA), Visa Inc. (V), PepsiCo, Inc. (PEP), GE Aerospace (GE), United Parcel Service, Inc. (UPS)

Wednesday: Meta Platforms, Inc. (META), International Business Machines Corporation (IBM), AT&T Inc. (T), The Boeing Company (BA)

Thursday: Microsoft Corporation (MSFT), Alphabet Inc. (GOOG, GOOGL), Merck & Co., Inc. (MRK), T-Mobile US, Inc. (TMUS)

Friday: Exxon Mobil Corporation (XOM), Chevron Corporation (CVX)

^{Source: Zacks, April 18, 2024
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“Anything you don’t understand is dangerous until you do understand it.”

– Larry Niven

Can You Claim The Child Tax Credit For Other Dependents?

Even if you cannot claim the child tax credit, you may be able to claim the credit for other dependents under your care. The IRS issues a maximum of $500 for each dependent who meets specific conditions.

These conditions include the following:

Dependents who are age 17 or older.
Dependents who have individual taxpayer identification numbers.
Dependent parents or other qualifying relatives supported by the taxpayer.
Dependents living with the taxpayer who are not related to the taxpayer.

The credit begins to phase out when the taxpayer’s income exceeds $200,000. This phaseout begins for married couples filing a joint tax return at $400,000.

Taxpayers may be able to claim this credit if the following are applicable:

They claim the person as a dependent on the taxpayer’s return.
They cannot use the dependent to claim the child tax credit or additional child tax credit.
The dependent is a U.S. citizen, national, or resident alien.

This dependent credit may also combine with the child and dependent care credit and the earned income credit.

*This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov⁷

Channel Your Natural Beauty

What you put on your body is equally as important as what you put in your body; this is why more people are opting for natural skincare and beauty products. Natural ingredients are better for the environment and often gentler on your skin.

When seeking a natural beauty product, check its certifications. Most natural beauty products are certified organic or natural by outside organizations. As a bonus, they may also be vegan or cruelty-free. You should also consider shopping for products that are non-toxic, palm oil-free, and produced with ethical ingredient sourcing policies and environmentally friendly packaging.

Here are some of the most common natural ingredients to look for, depending on the product and your needs:

Aloe vera
Almond oil
Shea butter
Coconut oil
Antioxidants such as pomegranate or orange extract
Rosehip oil
Sunflower seed oil

The list of powerful, effective, and safe natural beauty ingredients is constantly growing, and we are advancing toward a future of gentle, sustainable beauty products.

Tip adapted from Sustainable Jungle⁸

How can you name three consecutive days without mentioning the words Monday, Tuesday, Wednesday, Thursday, Friday, Saturday, or Sunday?

Last week’s riddle: What has a tail and head but no body? Answer: A coin.

Familia Basilica, Barcelona, Sagrada Familia

Footnotes And Sources

^{1. The Wall Street Journal, April 19, 2024}

^{2. CNBC.com, April 15, 2024}

^{3. The Wall Street Journal, April 16, 2024}

^{4. CNBC.com, April 16, 2024}

^{5. CNBC.com, April 19, 2024}

^{6. MarketWatch, April 19, 2024}

7. IRS.gov, October 23, 2023

8. Sustainable Jungle, January 23, 2023

^{Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.}

^{The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.}

^{The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.}

^{The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.}

^{U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.}

^{International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.}

^{Please consult your financial professional for additional information.}

^{This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.}

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Financial Professionals may only conduct business with residents of the states or jurisdictions in which they are properly registered, licensed or exempt from registration and not all of the securities, products and services mentioned are available in every state or jurisdiction.

The information being provided is strictly as a courtesy. When you link to any of these websites provided herein, Elsass Financial Group makes no representation as to the completeness or accuracy of information provided at these sites. As well, the company is not liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, sites, information and programs made available through this site.

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Weekly Market Insights – February 5, 2024

by Alicia Allen | Feb 5, 2024 | Blog

Weekly Market Insights: Investors Move Past Mixed Fed Message

Presented by Elsass Financial Group

Stocks pushed higher last week as investors cheered mega-cap tech corporate reports and a better-than-expected employment report.

Stocks At New Highs

At the beginning of the week, stocks surged, anticipating fourth-quarter corporate updates from tech companies and the Federal Reserve’s two-day policy meeting; this led to the S&P 500 Index reaching a new record high on Monday.

The market remained relatively stable for the rest of the week until Wednesday, when the Federal Reserve announced its decision to maintain interest rates within the 5.25-5.50 percent target range. The Federal Open Market Committee’s (FOMC) news unsettled investors, who anticipated that rates would remain unchanged but expected more specific guidance on the Fed’s plan to lower interest rates.¹

On Friday, the job report for January revealed the addition of 353,000 new jobs, surpassing the forecast of 185,000. This strong report did not negatively impact the markets. Instead, investors interpreted it as confirmation of a robust economy.²

^{Source: YCharts.com, February 3, 2024. Weekly performance is measured from Monday, January 29, to Friday, February 2.}
^{ROC 5 = the rate of change in the index for the previous 5 trading days.}
^{TR = total return for the index, which includes any dividends as well as any other cash distributions during the period.}
^{Treasury note yield is expressed in basis points.}

Fed’s Mixed Signals

The Fed’s decision to keep rates steady left some investors disappointed, as they had been hoping for indications of rate cuts in the coming months; this led to a decline in stock prices on Wednesday, with increased selling towards the end of the trading day.

The Wall Street Journal’s headline after the FOMC meeting on Wednesday suggested that rate cuts were possible but not expected immediately. The FOMC’s policy language, released after the meeting, indicated a subtle shift from considering rate cuts to proposing they could be possible unless inflation became a concern.³

This Week: Key Economic Data

Monday: ISM Services Index.

Wednesday: International Trade in Goods & Services. EIA Petroleum Report.

Thursday: Jobless Claims. Fed Balance Sheet.

^{Source: Investors Business Daily – Econoday economic calendar; February 2, 2024
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Monday: McDonald’s Corporation (MCD), Caterpillar (CPL)

Tuesday: Eli Lilly and Company (LLY), Amgen Inc. (AMGN), Fiserv, Inc. (FI)

Wednesday: The Walt Disney Company (DIS), Uber Technologies Inc. (UBER), PayPal Holdings Inc. (PYPL)

Thursday: AstraZeneca Plc (AZN), S&P Global Inc. (SPGI), Philip Morris International Inc. (PM)

Friday: PepsiCo Inc. (PEP)

^{Source: Zacks, February 2, 2024
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“Your life does not get better by chance, it gets better by change.”

– Jim Rohn

Vacation Home Rentals

If you receive money for the use of your primary residence, you may have to report this rental income on your tax return; this means that the “vacation home rental” classification can apply to your home, even if you don’t own multiple short-term rental properties. The rental expense deduction is limited in the case of a property used as a home; the rental expenses can’t be more than the rent received. The rental income may not require reporting if you rent the house to your tenant for fewer than 15 days during the year.

A vacation home is a house, apartment, condominium, or other dwelling that you use to generate income, but you can also use it as a residence during the year. For tax purposes, it’s critical to divide the expenses of a property into personal and business purposes.

To report rental income and rental expenses, use Schedule E. In addition, rental income may be subject to a net investment income tax.

*This tax tip is for informational purposes only and is not a replacement for real-life advice. Consult your tax, legal, and accounting professionals for more specific information.

Tip adapted from IRS.gov⁴

Taking Care Of Your Mental Health

Taking care of your mental health is just as important as your physical health—if not more so. Your mental health influences how you communicate with others, perform at work, and feel about yourself.

Here are some tips to help you focus on your mental health and understand what you need to be the best version of yourself:

Start your day with coffee or tea and enjoy the warm drink without thinking about what’s ahead.
Set up a getaway, even if you don’t go far. It could even be camping in your backyard.
Think of something in your life you want to improve and figure out what you can do to take a step in the right direction.
Learn something new, whether that’s a recipe, a song, a poem, or a skill.
Show some love to someone in your life. Write a letter, send a text, or give a loved one a phone call.
Go off the grid and leave your smartphone at home for a day (or a few hours).

Tip adapted from Mental Health America⁵

Two men played five games of chess in the park. They both won the same number of games, yet none of the games they played ended in a draw. So how could this be?

Last week’s riddle: What five-letter word becomes shorter when you add two letters to it? Answer: Short.

A camel caravan in front of the Great Pyramids of Giza, Egypt

Footnotes And Sources

^{1. CNBC.com, January 29, 2024}

^{2. The Wall Street Journal, January 31, 2024}

^{3. CNBC.com, February 2, 2024}

^{4. IRS.gov, September 25, 2023}

^{5. Mhanational.org, October 9, 2023}

^{The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.}

^{Please consult your financial professional for additional information.}

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Weekly Market Insights – January 29, 2024

by Alicia Allen | Jan 29, 2024 | Blog

Weekly Market Insights: Excitement Around Big Tech Continues

Presented by Elsass Financial Group

Stocks continued their upward climb last week as excitement around big tech continued; positive economic reports stoked investors’ belief that the Federal Reserve has pulled off a soft landing.

Stocks Power Ahead

Big tech was back last week, pushing the Dow and the S&P 500 to new highs early in the week as markets resumed the late Q4 rally.

The so-called “Magnificent Seven” stocks—comprising 28% of the S&P 500 Index—resumed their pole position at the head of the pack as investors maintained their artificial intelligence (AI)-related bullishness and rewarded widespread cost-cutting at many tech giants. While the rally fizzled on Friday, the week’s gains were slow but steady.^1,2,3

The big economic news last week was better-than-expected economic growth and inflation news. Real Gross Domestic Product grew at a 3.3% annualized clip in Q4 2023, ahead of Wall Street consensus expectations of 2%.

The Personal Consumption Expenditures (PCE) Index, one of the Fed’s most favored inflation gauges, showed core inflation (excluding food and energy) cooled in December, with an annualized rate of 2.9%, beating consensus expectations. Core inflation was 3.2% on an annualized basis—its lowest level since March 2021. While the inflation update didn’t move markets much, it helped validate investors’ optimism that Fed policy has maintained economic growth while bringing inflation down.⁴

^{Source: YCharts.com, January 27, 2024. Weekly performance is measured from Monday, January 22, to Friday, January 26.}
^{ROC 5 = the rate of change in the index for the previous 5 trading days.}
^{TR = total return for the index, which includes any dividends as well as any other cash distributions during the period.}
^{Treasury note yield is expressed in basis points.}

Earnings Season Feeds FOMO

The market digested Q4 earnings news from some of the largest companies, with enthusiasm feeling like FOMO. The “fear of missing out” drove much investor sentiment and seemed to build market momentum.

While the enthusiasm for AI continues to be one driver of technology stock prices, the spotlight last week was on layoffs. Over 23,000 workers at 85 tech companies have lost their jobs this month. The market appears to be rewarding the cost-cutting measures, with many tech giants repositioning themselves with AI in mind, and some analysts inferring that this emphasis on efficiency may encourage investors.^5,6

This Week: Key Economic Data

Tuesday: FOMC Meeting. Consumer Confidence. Home Price Index.

Wednesday: FOMC Announcement/Fed Chair Press Conference.

Thursday: Jobless Claims. ISM Manufacturing Index. Fed Balance Sheet.

Friday: Employment Situation.

^{Source: Investors Business Daily – Econoday economic calendar; January 26, 2024
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Tuesday: Microsoft Corporation (MSFT), Alphabet Inc. (GOOG, GOOGL), United Parcel Service, Inc. (UPS), Starbucks Corporation (SBUX)

Wednesday: Mastercard Incorporated (MA), The Boeing Company (BA), Automatic Data Processing, Inc. (ADP)

Thursday: Apple Inc. (AAPL), Amazon.com, Inc. (AMZN), Meta Platforms, Inc. (META), Merck & Co., Inc. (MRK)

Friday: Exxon Mobil Corporation (XOM), Bristol Myers Squibb Company (BMY)

^{Source: Zacks, January 26, 2024
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“I believe in intuitions and inspirations. I sometimes feel that I am right. I do not know that I am.”

– Albert Einstein

Couples Who Work Together, Tax Together

As more households decide to start a business, many couples learn about the tax responsibilities related to such businesses. Here are some things to consider when working together:

You should establish whether you have a partnership business (in which both spouses have an equal say in business affairs, services, and capital) or an employee/employer relationship (with one spouse substantially controlling management decisions). These relationships involve different tax situations.
If an employee/employer relationship exists, the second spouse (employee) may be subject to income, Social Security, and Medicare tax.
If there is a partnership relationship, you may need to report the business income on Form 1065, US Return of Partnership Income.

*This information is not intended to substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov⁷

Four Tips To Help You Sleep Better

Sleep is one of the most important things we do to stay healthy and energized. Much more goes into getting a good night’s sleep than simply resting your head on the pillow, so here are some tips for getting your shut-eye:

Increase bright light exposure during the day. You probably already know that it helps to keep your room dark while you sleep, but did you know it’s also beneficial to get enough bright light during the day? These contrasts tell your body when it’s time to go to sleep. This natural clock is called your circadian rhythm.
Reduce blue light exposure in the evening. The luminance from our devices (smartphones, tablets, and TVs) is called blue light and can disrupt your sleep cycle. Try to limit blue light at least two hours before bedtime. Some devices offer a setting that automatically “warms” the light to limit these blue hues.
Try to wake up and sleep consistently, even on weekends, as this is another way to set up your body’s circadian rhythm for success.
Adjust your bedroom temperature. Did you know that the temperature in your bedroom can affect your sleep? Some studies show that temperature matters even more than noise, and some sleep experts recommend keeping your bedroom at around 70 degrees.

Tip adapted from Healthline⁸

What five-letter word becomes shorter when you add two letters to it?

Last week’s riddle: I am gentle enough to soothe the skin, light enough to reflect the sky, yet hard enough to crack rocks. What am I? Answer: Water.

Sleepy koala on a eucalyptus tree

Footnotes And Sources

^{1. The Wall Street Journal, January 22, 2024}

^{2. CNBC.com, January 22, 2024}

^{3. The Wall Street Journal, January 25, 2024}

^{4. CNBC.com, January 25, 2024}

^{5. Slickcharts.com, January 26, 2024}

^{6. CNBC.com, January 26, 2024}

^{7. IRS.gov, July 27, 2023}

^{8. Healthline.com, October 9, 2023}

^{The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.}

^{Please consult your financial professional for additional information.}

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