President Trump’s recently released “core principles” for tax reform and simplification initiates the beginning of what is sure to be a heated debate over the future of U.S. tax policy. The announcement was short on policy details and far from enacted legislation. Also, the legislative process is complex and slow, particularly for tax legislation. The few details that were provided in the administration’s announcement have the effect of moving the Trump plan closer to the House Republican Plan, known as “A Better Way.”
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For many wealthy individuals, meeting their annual lifestyle needs is their top priority. Having a Portfolio Reserve—a mix of risk-control assets and high-quality bonds—helps fund the core lifestyle while protecting the spending during times of market distress. Deciding when to activate it is a personal decision that, in part, depends the risk preference and willingness to make potential trade-offs.
Companies manage many risks, and it’s easy for boards to get bogged down discussing financial and compliance risks. But that can mean they’re not paying enough attention to risks that are truly critical, including cybersecurity that is continually evolving or threatening. Directors need to make sure they have an effective risk management (ERM) program and are focusing on the right key risks—the ones that could spell success or failure for the company.
Tax positions of a candidate are aspirational, and the newly-elected president will need to work with Congress to implement tax changes. In a summary comparing the outline of the tax reform proposals the Trump administration released on April 26, 2017 and the proposal the House GOP put forth in June 2016, it addresses the topics that are most relevant to high income and high-net worth taxpayers. As stated at the April 26 press conference, the Administration’s proposals are at the beginning stage of a process to develop a detailed tax plan.
Tremendous forces are radically reshaping the world of work. Economic shifts are redistributing power, wealth, competition and opportunity around the globe. Disruptive innovations, radical thinking, new business models and resource scarcity are impacting every sector. Businesses across the world are beginning to understand that they need a clear and meaningful purpose, and mandate for the decade ahead if they are to attract and retain employees, customers and partners.
Now is a good time to review the developments in the economy and financial markets. In some areas, we are very encouraged by developments that further embolden our initial views, whereas we have been surprised in other areas and have adjusted portfolios accordingly. Overall we remain comfortable with our overweight to risk assets and underweight to core fixed income. It’s the details of the risk overweight that have changed the most. And emerging markets could present the greatest opportunities for total return on a risk-adjusted basis.
Today, more business and IT executives are implementing dynamic threat intelligence and information sharing to shift cybersecurity and privacy capabilities from reactive to proactive. They understand that they can build business advantages and customer trust by detecting, responding to and mitigating cyberthreats in real time.
In 2009 the Bitcoin blockchain emerged as a form of a smart contract and has since evolved. From both a technological and legal perspective, smart contracts will continue to evolve and disrupt in digital asset sales and capital markets, supply chain management, smart government records and smart cities, real estate land registries, and self-sovereign identity systems.
President Trump’s recently released proposed budget for Fiscal Year 2018, titled “A New Foundation for American Greatness,” has numerous points of interest for employers, including proposals to: cut the Department of Labor’s budget; slash the budget and workforce of the National Labor Relations Board; reduce the budget of the Office of Federal Contractor Compliance Program and merge it with the Equal Employment Opportunity Commission; implement mandatory E-Verify for all employers; and establish a federal paid family leave program.
OPEC recently met in Vienna to assess the impact of its production cut agreement over the last six months and agreed to extend the deal for nine months. The extension is an effort to reduce global oil supply and boost prices. Tariq Zahir, Managing Member of Tyche Capital Advisors discusses the OPEC decision and how it affects the markets, including an analysis of the big four—Saudi Arabia, Iraq, Iran, and Russia—and how Saudi Arabia is the main driver of complying with the already agreed quota, picking up slack of the other members.