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Happy (SECURE Act) 2020!

The Setting Every Community Up for Retirement Enhancement Act of 2019, better known as the SECURE Act, is so new that estate planners and accountants are still learning ways to plan around it to minimize the impact on existing and future clients. Following are some items to ponder as you review your estate plans through the year.

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4th Quarter 2019 Investment Update

Supported by stable interest rates and optimism regarding the China trade negotiations, the S&P 500 Index rose 28.9% and the Nasdaq Index, with its high information technology weighting, rose 33% for the year. Enthusiasm and expectations for a better economy and strengthening earnings grew as the year progressed. Current equity market valuations look historically elevated with an overall 18x expected Price-to-Earnings ratio, but with few attractive investment alternatives, the financial market gains can continue. There is still over $1 trillion in private equity and hedge fund cash ready to be invested, so even a minor correction would be met with supportive technical buying. The rally was concentrated in the Large Cap technology growth stocks with Mid Cap and Small Cap stocks generally up less significantly. Value stocks like financials, consumer staples, energy and utilities – which are not expected to have significant earnings growth – underperformed during the year.

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