Archive for October 21st, 2008

Mr. Toad’s Wild Ride … a.k.a. the stock market

October 21, 2008

Excerpted from Business Week, Oct. 27, 2008

* * * * *

By all measures, market volatility has heightened recently. Tthe spread between daily S&P 500 highs and lows is averaging over 50 points, vs. about 25 points in the first eight months of 2008.  The VIX — an index of S&P volatility — has almost tripled in the past couple of weeks. 

* * * * *

Ken’s Take:  Jacked from financial advisor Dave Ramsey (who probably jacked it from somebody else) –“Hold on tight — you usually don’t get hurt on a roller coaster unless you jump off”

image

 image

Source:
http://images.businessweek.com/ss/08/10/1016_numbers/2.htm

* * * * *

Want more from the Homa Files?
Click link =>  The Homa Files Blog

Posted in Stock Market | Leave a Comment »

Raise your hand if you like Joe the Plumber ?

October 21, 2008

Excerpted from Rasmussen Reports, Oct. 19, 2008

* * * * *

61% of voters have been following news stories of Joe the Plumber somewhat or very closely.

Among those following the story,  58% have a favorable opinion of Joe — 37% unfavorable.

71% of Republicans have a favorable opinion of Joe — 64% of Democrats have an unfavorable view.

Among middle income voters (earning $40,000 a year to $100,000) 52% have a favorable opinion of Joe — 33% unfavorable 

39% of those who earn less than $40,000 a year have a favorable opinion of Joe —  44%  unfavorable.

35% of higher income have a favorable opinion of Joe — 52% unfavorable.

57% of entrepreneurs have a favorable opinion Joe.

* * * * *

Given a choice between the two presidential candidates and Joe, 44% say Obama is the one who best understands the economic realities they face. Twenty-nine percent (29%) named McCain and 19% Joe the Plumber.

Among middle-income Americans, those earning $40,000 to $100,000 annually, 58% say that either McCain or Joe the Plumber best understands their situation. Just 35% say Obama does.

* * * * *

Full article:
http://www.rasmussenreports.com/public_content/politics/election_20082/2008_presidential_election/democrats_favor_spreading_wealth_around_gop_disagrees

* * * * *

Want more from the Homa Files?
Click link =>  The Homa Files Blog

Posted in Government & Politics, Taxes | 1 Comment »

Bailout: One of the largest tax bills in recent years

October 21, 2008

Excerpted from WSJ: “The Bailout Includes Lots of Treats”,  Tom Herman, Oct. 12, 2008

 
The historic bailout package (includes) relief for millions of taxpayers. The new law “makes almost 300 changes” to the Internal Revenue Code.

Part of the new law prevents many people from being ensnared this year by the alternative minimum tax. Other provisions extend popular tax breaks that expired at the end of last year or were scheduled to disappear after the end of this year.

* * * * *

AMT Quick Fix

If Congress had done nothing, about 26 million people would have been affected this year by the alternative minimum tax, or AMT, up from four million last year, The new law, which includes raising the AMT income-exemption levels for 2008, essentially slaps a patch on the AMT problem.

The AMT is a parallel system to the regular tax system but operates under significantly different rules and can be mind-numbingly complex. For example, under the AMT, you can’t deduct state and local taxes. That’s why among the most common victims of the AMT are people who live in high-tax areas, such as California and New York City, and who make between about $100,000 and $500,000.

Under the new law, the AMT income-exemption level for 2008 rises to $69,950 for married couples who file jointly and $46,200 for most singles.

image
http://tax.cchgroup.com/Legislation/2008-Emergency-Economic-Stabilization-Act.pdf

* * * * *

Some Restored Deductions

The new law also restores deductions for state and local taxes, higher-education tuition and teachers’ school supplies.

Sales-tax deduction: If you itemize your deductions, you can choose to deduct state and local sales taxes, instead of state and local income taxes. You can’t deduct both, however. The sales-tax deduction is especially popular in Florida, Texas, Washington and other states that have no state income tax.

Charitable deductions from IRAs: Congress also revived a popular provision allowing people age 70½ or older to transfer as much as $100,000 a year directly from an IRA to charity without owing income taxes on the money. This transfer is counted toward the taxpayer’s required minimum distribution for the year. Many donors care deeply about this provision.

Non-Itemizers Property Taxes: Lawmakers also extended a provision that helps many people who don’t itemize. It allows them to claim an additional standard deduction for real-estate taxes of as much as $1,000 for joint filers, or $500 for most singles.

* * * * *

Full article:
http://online.wsj.com/article/SB122377122797726287.html?mod=sunday_journal_primary_hs

Comprehensive analysis:
http://tax.cchgroup.com/Legislation/2008-Emergency-Economic-Stabilization-Act.pdf

* * * * *

Want more from the Homa Files?
Click link =>  The Homa Files Blog

Posted in Taxes | Leave a Comment »

The Wealthy Shifts on Luxury, Optimism, & Politics

October 21, 2008

Excerpted from AdAge “Study:Luxe Loses Luster for Wealthy” by Lucia Moses, October 2, 2008

* * * * *

Fears about personal finances are bubbling over to America’s richest, says a new survey by American Express Publishing and researcher Harrison Group, whose findings bode ill for the already-softening luxury advertising category.

The survey, conducted Sept. 19-23 among 614 consumers with an annual household income of $100,000-plus—the top 10% of America’s families—asked how the market turmoil was affecting respondents’ spending plans…The vast majority of respondents—83%—said they were waiting for items to go on sale before buying.

Luxury is losing favor with this group; the percentage of people who said a little luxury was important in tough times declined to 50% from 61% in June. “What makes the survey a source of concern is that this top 10% represents over 50% of all retail spending,” Jim Taylor, vice chairman of Harrison Group, said in a statement. “It is affluent consumers who have kept the consumer economy afloat and whose purchasing is critical to the coming holiday season.”

Attitudes among the affluent have worsened throughout the year, with 48% of the country’s richest families saying they were worried about running out of money, up from 35% in April. Sixty percent said they believed the economy was in a recession that would last more than a year, up from 55% in June.

Optimism also is on the downswing. Fifty-five percent of respondents indicated they were optimistic about their future, down from 93% in 2005…

The survey also found that the Republican Party is losing its hold on the wealthy. The percentage of the affluent calling themselves Republicans stood at 34% in September, down from 46% in 2006, the survey showed. An equal percentage said they were independent, up from 19% two years ago…findings suggest that the affluent still favor Republican candidate John McCain for president but that there are enough undecided wealthy voters to tip the scales in favor of Democratic hopeful Barack Obama.

Edit by SAC

* * * * * 
Full article:
http://www.brandweek.com/bw/content_display/news-and-features/retail-restaurants/e3id41521fe85d4537f1ae883da0ed6db34?imw=Y

* * * * *

Want more from the Homa Files?
Click link => The Homa Files Blog

Posted in Mktg - Segmentation | Leave a Comment »