Hims for Us? | Erik Averill, Brandon Averill, Justin Dyer | AWM Insights #31
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Episode Notes
How has President Donald Trump contracting COVID-19 impacted the markets? Plus, the most important investment strategy you'll need is a tax strategy.
:45 - 1:25
The latest in investment news: Two software companies: Palantir and Asana both went public. In addition, Hims is doing a reverse merger into a SPAC that's backed by Oak Tree.
1:25 - 2:26
Why the markets are a bit shaky and unpredictable at the moment, beyond just President Donald Trump testing positive for COVID-19. Plus what is the latest on the pandemic economic recovery?
2:40 - 4:03
Average Joe’s vs. Pros:
Should I be looking at buying Municipal bonds if I'm looking to limit risk?
4:08
Key takeaway:
Capturing high expected returns? It can get exciting, but ultimately it's all about your after tax returns in the public markets. So make sure you have a tax strategy as much as you have an investment strategy.
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Erik Averill: LinkedIn
Brandon Averill: LinkedIn
Justin Dyer: LinkedIn
+ Read the Transcript
00:00:00 - 00:05:09
Erik Averill:
Hey Everyone, welcome back to AWM insights. It's your power 3: Two CPWAs and a CFA. We are Eric Brandon and Justin and we may have the biggest news of twenty-twenty on Friday President Trump and the first lady test positive for covid-19 after we have this crazy debate Erik.
Brandon Averill:
Wait a minute. Wait a minute. Hold your horses. We got other news going on in the world. We can't just put all of our attention on Trump, right? Let's talk about what's going on the investment world. We actually had Palantir and Asana go public very much anticipated and dominating the headlines. We got SPACs, we've got direct listings all this stuff going on and then some news hit the news wire here just within the last 24 hours that Hims is actually doing a reverse merger into an SPAC that's being backed by Oaktree, you know that’s Big news around here in AWM Parts, because we did have the opportunity to get into that Hims deal why they were private about a year ago. So we're definitely celebrating a little bit over here and we were excited to be participating in that and I know that's not all the news that's going on. I mean Justin you've you can dig into some of the data here, but we have had some numbers get released adding to the uncertainties. So what is going on in the financial markets and the economy right now.
Justin Dyer:
With this news at Trump in the first lady of covid-19 markets are a little shaky on Friday in addition to that, It's the end of the quarter and the end of the month and that always brings out a ton of data releases. One of the more important ones being right now the unemployment situation. The US Bureau of Labor Statistics released on Friday that the US economy added 661,000 jobs last month, which is a great number on its own. It is slowed relative to past months, but the recovery is still taking hold. It was pretty broad based across different sectors: Hospitality, leisure and retail all adding pretty strong amounts. In addition. One of the one of the more important data points is on manufacturing, that is still gaining steam. It's losing some momentum if you will, but certainly in recovery mode strongly as well and then turning forward we're going to see a ton of earnings come on the calendar over the next couple weeks and it will be really interesting to see what we see what the data brings to the market there.
Erik Averill:
As the average Joe that I am. Well, I'm not as naive of just a Robin Hood Trader thinking that I can trade market up and down so I'm definitely not going to go to cash. But you know, I live in California, I don't really want to take any risk, so I think I'm just going to go ahead and buy some Muni bonds. What are your thoughts on that?
Justin Dyer:
Well from the pro mindset, you're thinking in the right direction, but what we do is take that a step further, you want to really think about tax efficiency and tax equivalency really kind of to your point while muni-bonds are great and tax-efficient vehicles, they're not all created equal even in California. You need to be a little bit cautious or within New York or any other state right? There are General obligation municipal bonds, there are often driven bonds and those within the actual State can be different and have different components that you need to be aware of in different risks, but then even across state lines, it may make sense for a California-based investors, to your point, to invest in a bond from Florida. I'm not necessarily saying that's true. Everything is unique to each individual investor and we customize portfolios according to that fact, but you really need to be aware of an individual's tax situation, the bond that you're looking at specifically and what that is yielding after tax for that specific investor. You can't just blindly go in there and say: “Hey I live in California, I pay California taxes, and I'm going to go buy California municipal bonds.” It's on the right path, but you need to log. Understand that that the pros think about it, you know a little bit more detail and depth.
Erik Averill:
Here are the key takeaways: Number one capturing High expected returns. It gets exciting when you hear about a story like Hims, but ultimately it's also about your after tax returns in the public markets. Make sure that you have a tax-efficient strategy that you're working with your certified private wealth advisor in a CFA to make sure that you're capturing the returns that you deserve. If you like what we're doing go ahead and head over to AWM Insights on Apple podcast. Make sure you hit the Subscribe button and give us a rating. Until next time stay humble. Stay hungry and always be a pro.
The information in this podcast is educational and general in nature and does not take into consideration the listeners personal circumstances. Therefore, it is not intended to be a substitute for specific individualized financial, legal or tax advice. To determine which strategies or Investments may be suitable for you, consult the appropriate qualified professional prior to making a final decision.