How will a possible government shutdown affect the markets? Michael Townsend of Schwab advises investors about the effects of a possible shutdown and the currently debated tax bill. We’ve been reading about the possibility of a “melt up” in the markets for over a year now.  Analysts are looking at past melt ups to forecast whether we’re facing one now. Schwab’s Chief Investment Officer Liz Ann Sonders explains. The current Senate and House tax bill proposals have many shaking their heads as they try to reconcile the two. Tim Steffen of Baird Wealth Management has simplified the process by creating a comprehensive table comparing them. Advisor Perspectives provides the chart.

Tax Bill And Possible Government Shut Down–  Michael Townsend, Vice President, Legislative and Regulatory Affairs, Charles Schwab & Co., Inc, discusses what investors should know about the tax bill and possible government shut down this Friday. Read more… 

Anatomy Of A Market Melt Up–  Over the course of the past year, Liz Ann Sonders, Chief Investment Officer at Schwab, has often listed a melt up as one of the “risks” the market faces.  It’s been categorized as a “risk” based on the history of melt ups—as good as they feel while they’re occurring, they have typically not ended well.  Melt ups tend not to peter out, but to instead end with a bang; and timing the crescendo is extremely difficult. Read more…

Comparing The House And Senate Tax Reform Proposals–  Tim Steffen of Baird Wealth Management has prepared a comprehensive table comparing both the House and Senate tax reform bills to current law. It’s a handy, at-a-glance tool for comparison as both bills are far from identical. As an example, nearly all the provisions in the House plan are permanent, while most Senate provisions affecting individuals expire in 2025. And while the House plans to permanently repeal the AMT and estate tax, the Senate simply expands the exemptions from those taxes, and only temporarily. Read more…

John R. Day, Bill Ennis, Stephanie Hall and Matt Heller

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