Giving 3.0 | New IRS Limits & the FOMO Index

IRS Announced Adjusted Limits: Within hours of data showing October’s 31-year high inflation numbers, the IRS released its own inflation-indexed tax provisions for 2022, which are filed in 2023. Standard deductions, tax brackets, gift tax, and the like all have increased. For example, the annual exclusion for gift tax rose for the first time since 2018—rising from $15,000 to $16,000. Or for married couples filing jointly, standard deduction rises $300 in 2022, but another $800 in 2023. If you’re curious for more detailed information on adjustments, read this article.

FOMO Index: It is a term we hear bandied about increasingly. FOMO—Fear of Missing Out. Typically, it refers to a kind of anxiety that something is happening elsewhere, and you are not a part of it. Well, Yosef Bonaparte from CU Denver Business School, has coined the FOMO Index for the stock market. “We believe that for FOMO to exist, we need to have a momentum in the stock market; we need investors’ news sentiment to be high… we need investors to take some additional risk,” says Bonaparte. FOMO increases one’s propensity to participate in the market and increase risk tolerance. According to his chart below, the FOMO sentiment (red line) has begun to run high compared to the market (blue line).  As many of you are familiar, we are committed to being as transparent as possible as to the amount of risk investors maintain over time. If you are at all unsure as to the level of risk you have right now please don’t hesitate to reach out to us.  This is one of the few areas of market experience we can control and monitor well over time.

Lunar Eclipse Next Week: November 18-19 the longest lunar eclipse of the century is expected. Even better news, North America is expected to be prime viewing territory. For us folks in the East coast, it should be happening from 2am-4am. The eclipse will be almost full, but not quite. The neat thing is partial eclipses produce something called the Japanese Lantern Effect (below). Stunning to say the least.