Staying the Course: Managing Inflation, Taxes, and Investing in a Changing Economy
Volume 42 of Independent Thinking® by Evercore Wealth Management addresses the pressing financial concerns of 2021, focusing on the dual threats of rising inflation and potential tax increases.
The publication emphasizes that while headline risks are significant, disciplined diversification and long-term planning remain the best defenses for investors. It explores the nuances of today’s inflation compared to the 1970s, the complexities and growing popularity of sustainable (ESG) investing, and the evolving landscape of municipal bonds.
The issue also guides proactive tax planning and the use of directed trusts for complex family needs.
The message is clear throughout: thoughtful, ongoing planning and adaptability are essential for navigating an uncertain economic environment.
Independent thinking®
VOLUME 42
Staying the Course: Managing Inflation, Taxes, and Investing in a Changing Economy
Inflation: Today vs. the 1970s – The cover article explains why current inflation dynamics differ from past episodes, highlighting factors such as increased productivity, a stable U.S. dollar, and demographic shifts that are likely to moderate long-term inflation risks.
Sustainable Investing (ESG) – This section explores the rapid growth and challenges of ESG investing, noting the importance of aligning investment choices with personal values while remaining vigilant about greenwashing and evolving regulatory standards.
Municipal Bond Outlook – The publication reviews the New York City municipal bond market, considering the impact of political and fiscal changes on bond performance and investor opportunities.
Rising Taxes: Planning Ahead – With the prospect of significant tax increases, the issue urges investors to review their strategies, emphasizing the importance of early and proactive estate and tax planning to preserve wealth.
