This week’s eLetter editorial meeting here at DSWP brought many worthy suggestions for a topic: Brexit still unsettled, troubling German economic numbers, all manner of things Venezuelan, China Tariffs, Kim Jung Un’s No-Ko-Nukes and the Virginia Minstrel Show — just to name a few. But, as important as those things are, we couldn’t stop thinking about The New Green Deal put forth by the newly elected 29-year-old Congress critter from NY, Alexandra Ocasio-Cortez — AKA ‘AOC’.

Here’s some irony for you: Although The New Green Deal was presented in the House as a non-binding resolution it did receive support (including some co-sponsorship) from several key Democrat 2020 presidential hopefuls. Kamala Harris, Cory Booker, Lizzie Warren, Kirsten Gillibrand, Julián Castro, and Beto O’Rourke all gave it a thumbs up. (Do these people really want to be seen as The Unicorn Brigade?) In an admission that maybe some of the GND was not all that well thought out, within 48 hours the details of the plan were taken down at the website of Representative Ocasio-Cortez.  It did, unfortunately, return after a variety of modifications were made – one in particular to remove some rather low-brow language.

Here are some of the main points in the GND:

  • Ban affordable energy (‘fossil fuels)
  • Ban Nuclear Energy
  • Eliminate 99% of automobiles
  • Rebuild nearly every building in America
  • Eliminate jet airplanes
  • A government guaranteed income (for those unwilling to work)
  • Free college education
  • Ban Flatulent cows.

Jim Geraghty at National Review points out: “Vast chunks of the resolution are vague, like the call to “promote justice and equity by stopping current, preventing future, and repairing historic oppression of indigenous communities, communities of color, migrant communities, de-industrialized communities, depopulated rural, the poor, low-income workers, women, the elderly, the un-housed, people with disabilities, and youth.” What does that mean in terms of policy?” Who knows?

Kimberly Strassel in the Wall Street Journal noted that ‘The GND encapsulates everything Americans fear from government, all in one bonkers resolution.’

The cow thing elicited some great comments. Humorist and political pundit Mark Steyn noted that he was quite concerned because he always takes a flatulent cow along with him as a support animal when flying. He says it helps him to have First Class all to himself. Steyn also expressed concern of where this could be heading — maybe we will have a Secretary of Flatulism to decide who, what, where and how much.

In case you missed it:

(From the IRS website, posted Jan 16, 2019):

The IRS is generally waiving the penalty for any taxpayer who paid at least 85 percent of their total tax liability during the year through federal income tax withholding, quarterly estimated tax payments or a combination of the two. The usual percentage threshold is 90 percent to avoid a penalty.

This relief is designed to help taxpayers who were unable to properly adjust their withholding and estimated tax payments to reflect an array of changes under the Tax Cuts and Jobs Act (TCJA), the far-reaching tax reform law enacted in December 2017. 

“We realize there were many changes that affected people last year, and this penalty waiver will help taxpayers who inadvertently didn’t have enough tax withheld,” said IRS Commissioner Chuck Rettig. “We urge people to check their withholding again this year to make sure they are having the right amount of tax withheld for 2019.”

It’s a rare day when you can put IRS and compassion into the same sentence.

Market Minute — A Bit of a Pullback

After the huge bounce up from the December 24th low (we hope it’s the low!) it would be reasonable to expect a 2-3% consolidation (pullback) in the major indexes. We are seeing that now. I was somewhat surprised to see the S&P 500 Index* blow through overhead resistance at 2600, but it did – and that’s positive. We are at another resistance point and at a place where we could expect either a consolidation or reversal back down. Defensive sectors, Real Estate and Utilities, are the only sectors showing strength and that’s not really good. But the S&P Index did manage to break above its long-term moving average and that shows some strength. The long-term direction for markets is still down – and that’s still a concern. So, for now, it’s time to give Mr. Market another week or so to see if he can clarify his most likely next direction.

 

Ronald P. Denk, CFP®
Investment Advisor
Denk Strategic Wealth Partners
10000 N. 31st Avenue, Suite C-262
Phoenix, AZ 85051
Phone (602) 252-8700
Fax (602) 252-8701
Toll-Free (877) The-Denk
www.denkinvest.com

This weekly article reflects news, commentary, opinions, viewpoints, analyses and other information developed by Denk Strategic Wealth Partners and/or select but unaffiliated third parties. DSWP provides Market Information for illustrative and informational purposes only. If you wish to receive this weekly commentary by email please contact us at 602-252-8700 or by e-mail at lindaw@denkinvest.com. If you are receiving this commentary via email and would prefer not to please let us know either by email or phone.

Ronald Denk is an Advisory Representative offering services through Denk Strategic Wealth Partners, A Registered Investment Advisor. He is also a Registered Representative, offering investments through Lincoln Financial Securities Corporation, Member FINRA/SIPC.

Denk Strategic Wealth Partners is not affiliated with Lincoln Financial Securities Corporation. Information in this commentary is the sole opinion of Denk Strategic Wealth Partners. Past performance is no guarantee of future returns. All market related investments involve various types of risk, which include but are not restricted to, credit risk, interest rate risk, volatility, going concern risk, and market risk.

The Update provides information of a general nature regarding legislative or other developments. None of the information contained herein is intended as legal advice or opinions relative to specific matters, facts, situations or issues. Additional facts, information or future developments may affect the subjects addressed in this document. You should consult with an attorney, accountant or DSWP planner about your particular circumstances before acting on any of this information because it may not be applicable to your situation.

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*The indices are representative of domestic markets and include the average performance of groups of widely held common stocks. Individuals cannot invest directly in any index and unlike investments, indices do not incur management fees, charges, or expenses, therefore specific index returns will be higher. Past performance is not indicative of future results.

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