Zach Holly - Financial Planner

https://www.investopedia.com/what-to-expect-in-markets-this-week-a-new-consumer-price-index-reading-and-updates-from-tech-giants-11991100

What to Expect in Markets This Week: a New Consumer Price Index Reading and Updates from Tech Giants Apple is expected to release a new iteration of Siri, Adobe Reports and SpaceX may IPO this week.

📉 What Is Tax Loss Harvesting? And Why Do Wealthier Investors Pay Attention to It?

When markets are volatile, most people focus on what they've lost.

Savvy investors often ask:
💡 "Can this loss help me save on taxes?"

That's the idea behind tax loss harvesting.

🔹 A Simple Example

Let's say you own a stock in a taxable investment account (not an IRA or 401(k)).

📈 Earlier this year, you sold Stock A and realized a $20,000 gain.

Later in the year, you own Stock B that is down $15,000.

By selling Stock B and realizing the loss, you could potentially:

✅ Offset $15,000 of your $20,000 gain

Instead of paying taxes on a $20,000 gain, you may only owe taxes on a $5,000 net gain.

🔹 Another Example

Suppose you have:

• $10,000 in realized gains
• $13,000 in realized losses

Your losses could:

✔ Offset the entire $10,000 gain
✔ Potentially offset up to $3,000 of ordinary income annually

Any remaining losses may be carried forward to future years.

⚠️ Important Notes

Tax loss harvesting generally applies to taxable brokerage accounts.

It does not provide the same benefit inside:

❌ Traditional IRAs
❌ Roth IRAs
❌ 401(k)s

Also, investors must be careful of the wash sale rule, which can disallow a loss if substantially identical investments are repurchased too quickly.

💡 The Takeaway

Tax loss harvesting isn't about trying to time the market.

It's about being intentional with taxes and potentially improving your after-tax returns over time.

Many investors focus on investment performance.

Successful long-term investors also pay attention to tax efficiency.

BETTER BREADTH. The cap-weighted S&P 500 made a new all-time high on April 15, driven by strong megacap performance in the wake of the Iran War, but the S&P 500 Equal Weight Index had been lagging. That changed on 5/22 when the Equal Weight Index made a new all-time high itself as market breadth improved. (Source: Bespoke)

ANALYSTS CAN’T KEEP UP. Semiconductor stocks have been so hot
that they’ve raced past Wall Street analyst price targets. The average Russell 1000 stock sits about 15% below its consensus analyst price target, but the average stock in the Semiconductor group was 2.2% above its consensus price target as of 5/28.(Source: Bloomberg)

https://www.investopedia.com/slowing-growth-rising-inflation-create-dilemma-for-fed-11985354

Fed Faces Tough Choices as Growth Slows and Inflation Rises With every new bit of economic data, the Federal Reserve's mission to keep inflation low and employment high at the same time looks more like a double bind.

https://www.franklintempleton.com/articles-us/retirement/may-is-529-month-five-action-steps-every-family-should-take

May is 529 Month: Five action steps every family should take May is 529 Month. As college costs rise, learn five practical ways to maximize your plan’s tax benefits, flexibility and growth potential to prepare for the future.

https://www.investopedia.com/after-years-of-weirdness-used-car-prices-are-finally-getting-back-to-normal-11984249

Used Car Prices Are Returning to Normal After Pandemic Price Surge Used car prices are falling from pandemic highs and approaching historical norms as supply recovers. Find out what this means for buyers and owners.

https://www.investopedia.com/stock-market-today-dow-jones-s-and-p-500-05222026-11982006

Stock Market Today: Indexes Advance Ahead of Holiday Weekend; Dow Sets All-Time High; S&P 500 on Pace for 8th Straight Week of Gains Major stock indexes rose Friday ahead of the holiday weekend, with the Dow Jones Industrial Average setting an intraday record and the S&P 500 poised to post its eighth straight week of gains.

JET LAG. The San Francisco 49ers will play in the first-ever NFL Australia game and as a result will break the league’s all-time travel record, topping 38,100 miles and logging 58 time zone crossings in 2026. The Carolina Panthers will travel the least at just 8,740 miles, crossing only six time zones and venturing no farther west than
Minneapolis. (Source: CBS Sports)

THE SHOHEI WAY. The Dodgers’ Shohei Ohtani threw seven scoreless innings for a win on 5/13, one day after hitting a home run. It was the sixth time in Ohtani’s
MLB career that he has hit a home run in one game and then pitched a scoreless start in the next. Only one other player in MLB history has done it, and only once: Walter Johnson in August
1909. (Source: OptaStats)

https://www.investopedia.com/cpi-april-inflation-11972367

Iran War Drove Up Inflation To the Highest Since 2023 Gasoline prices surged in April, raising the CPI and pressuring household budgets.

https://www.investopedia.com/stock-market-today-dow-jones-s-and-p-500-05072026-11969059

Markets News, May 7, 2026: Stocks End Lower, Oil Prices Rise; S&P 500, Nasdaq Retreat From Records Major stock indexes closed lower Thursday as oil futures reversed course and turned higher.