Sulzberger Capital Advisors


Articles & Whitepapers

The Taxing Taxonomy of Taxes (IRA Edition)

People often overlook the importance of taxes in their investment planning. They also don’t often maximize the use of IRAs and 401ks in their tax planning. It is not just about how much money you invest in your IRAs; it is also about which types of assets go in which types of accounts. Do you put the same mix of investments in all your accounts, or do you put your bonds in one type of account and stocks in another? For that matter, should you have some of your savings in a taxable account if you already have a lot of your money tied up in IRAs? These are important questions, and the answers can be surprising and can change with your age. If you have not discussed these kinds of questions with an advisor before, you should read on.

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Have Vaulting Valuations Already Cleared the High Bar?

Market analysts can be so fixated on the short-term impact of a recession, that they may miss some important long-term trends that the inflation spike and recession fears are masking. The dual hit of the COVID pandemic and the resurgence of a Cold War environment are causing changes to the corporate supply chains and free trade that have been rapidly globalizing for the last three decades. The question we are asking this quarter is, have we hit a fundamental, decade-long inflection point where higher interest rates are sustained, corporate profits become constrained, and the risk appetite for stocks and bonds becomes more restrained?

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Volatility, Stored Methane, and the Fundamentals of Asset Values

Volatility has buffeted the markets over the last few quarters. Stock markets around the world have been hammered by the Ukraine war, inflation, interest rate increases, and the continued supply chain problems. Yet the usual safe haven – bond investing – has also been fraught, as bond prices also go down in value as interest rates rise. So what is a long-term investor supposed to do? Firstly, don’t panic. In this quarter’s white paper, we are focusing on the ‘normality of volatility’ and the importance of understanding fundamental value of assets when confronting volatility. We explore the human element: why do assets move so sharply above and below their fundamental value? We will take a 30,000-foot view of market forces to get some perspective on how common this kind of asset fluctuation is to markets. Fasten your seat belts, because we are experiencing a bit of turbulence as hot air trading gives way to a cold front of fundamental value.

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The ABCs of Beta

For this quarter’s note, we thought we would wade a little bit into the turbulent stream of risk measurement known colloquially as Beta. Before everyone shouts in unison “boring!”, give us a chance to make the case that this is a worthwhile topic for investors – or at least for their investment managers.

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A Look-Back at 2020: The Fed’s Precedent-Setting Pandemic Playbook

There is a long-standing practice amongst money managers and investment advisors to send out an annual letter to clients. These are generally infinitely forgettable affairs, and mostly backward looking. So, in this year's letter we wanted to give people just one number to remember the year in financial terms: 14.

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Tariffs: A New Conversation on an Old Topic

As of this article’s submission, tariffs have been big economic news. Tariffs are taxes levied by governments on imported goods. The United States has been moving over the past 20-plus years to a free trade environment. The United States has been removing tariffs on imported goods; and, other countries have been removing the tariffs they have imposed on US goods they import.

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