Insights

Beginning January 1, 2024, there is a new Federal filing requirement for small businesses that comes with large civil and criminal fines and possible jail time for noncompliance. To be in compliance, all small businesses (S Corps & C Corps and LLCs) need to file a Beneficial Ownership Information Report (BOI) with the Financial Crimes Enforcement Network (FinCEN).

As expected, the Federal Open Market Committee (FOMC) voted to leave short -term policy rates unchanged at 5.50% at its June meeting. The Fed acknowledged “modest further progress” on inflation but is not quite ready to cut rates. We expect the Fed to keep interest rates at current levels for most of this year. For investors, that means cash yields will remain elevated. But there is also a risk to holding too much cash

Strong stock market performance continued through the second quarter, but at a more moderate pace and with fewer positive contributors when compared to the first quarter. Three months ago, we highlighted strong economic growth, falling inflation, and hopes of near-term Fed rate cuts as the three key positive dynamics sending stocks higher in 2024. Today, that list has narrowed to two. Economic growth remains strong and inflation is still moving in the right direction.

We believe the economy is headed for a soft landing, as solid job gains and moderating inflation should allow for the economy to slow in a measured fashion. This was hardly the consensus view even a few months ago, when there was widespread concern that a series of rate hikes in 2022 and 2023 would lead to a recession. The next move in rates is still expected to be lower, with the Fed signaling a rate cut by year-end (assuming inflation eases further).

It is with great pleasure that we welcome Andrew Swanson to Howland Capital as a portfolio manager. Andrew has more than 25 years of experience in financial services and brings a passion for investing and client service.

The hallmark of our research approach is the direct engagement with companies, a practice that affords us a granular understanding of business models, market positions, and growth trajectories.

A common thought among many individuals is to add one or more children or other family members to the individual’s various accounts to make the disposition of the accounts seamless at their death. While this works in theory, it can often add more complications than benefits. We note the following considerations before adding anyone to an account.

Late last year, the Federal Reserve sparked investor enthusiasm for aggressive policy easing in 2024 after it signaled that rates are at their cycle peak. Since then, mixed economic data have challenged investors’ outlook for rate cuts and added to uncertainty about the path of rates this year.

Throughout the first quarter of 2024, U.S. equity investors found themselves in an ideal market environment. Numerous, positive dynamics propelled stocks higher.

Despite numerous challenges in 2023, the U.S. economy defied widespread predictions of recession. Instead, growth moderated to a still-strong 3.2% pace in the fourth quarter while inflation continued to fall towards the Fed’s 2% target.

We have always focused on providing the highest level of service through our investment, administrative, and tax advisory/prep teams, whose foremost objective is to be a dependable partner and fiduciary. We have continued building out our senior leaders' ranks to effectively manage our existing clients and prudently resource our future growth.