CPAs | Consultants | Wealth Advisors

CLA OUTLOOK

Key Insights for Sound Financial Strategies

Take steps to prepare for changing scenarios.
Request a Meeting
DECEMBER 1 WEEKLY INSIGHTS
Small business optimism remains positive but softens in October
  • The NFIB Small Business Optimism Index came in at 98.2 for October, staying above the long-term average but below high of last December of 105.1. 
  • Small business owners reported slightly lower sales and reduced profitability compared to a month ago.
  • Finding staff remains a top issue with 32% of owners reporting unfilled job openings and 27% citing labor quality as their most important problem. (Source: NFIB - Small Business Association - Advocate for Owners)
Real estate prices should normalize as transaction volume increases
  • After the run up in real estate in the fourth quarter of 2021, values have been suppressed by higher interest rates and tighter credit conditions. 
  • A normalizing interest rate environment may increase transactions as financing costs ease, unlocking deferred deals and improving cap rate stability.
  • This may create exit liquidity for current holders and create opportunities for new investors looking to capitalize on a continued housing shortage. (Source: CLA Outlook)
Rebalancing realigns portfolio risks, especially during market volatility
  • Building a long-term portfolio is the foundation for helping to achieve your investment goals, but it’s not a “set and forget” process.
  • As growth stocks outperform and market concentration rises, regular rebalancing helps manage risk.
  • This approach helps limit drawdowns from high-beta stocks and positions your portfolio to capture gains when market leadership shifts.
Develop strong financial strategies
Tune in to the CLA Outlook for 2026 as we discuss timely topics around policy, the economy, and market performance.
Strategic Opportunities
The Big Picture for 2026
The CLA Outlook signals a turning point: stabilized inflation, growth above trend, and easing interest rates. Explore the key forces influencing portfolios in the year ahead.
  • 1. Review your asset allocation
    Align your portfolio with your long-term goals and risk tolerance.
    Consider rebalancing your portfolio to maintain your desired asset allocation.
  • 2. Harvest tax losses
    Take advantage of market downturns to sell investments at a loss, which can offset gains and reduce your taxable income.
  • 3. Make Roth conversions
    Converting traditional IRA assets to a Roth IRA during market dips can be beneficial, as you may pay taxes on a lower account value.
  • 4. Put excess cash to work
    If you have cash reserves, consider investing in opportunities aligning with your financial strategy. Money market accounts may be an attractive option for investors seeking a higher return rate on their cash reserves while maintaining liquidity and low risk.
  • 5. Consider gifting strategies
    Use market volatility to make strategic gifts, potentially reducing your taxable estate while benefiting your beneficiaries.
  • We can help
    No matter your financial position, incorporating sound tax and wealth advisory could help you achieve more. We are here to guide you to a more comprehensive approach.
Request a Meeting
Are you ready to take steps to prepare for your financial future? Please enter or confirm your information below and someone will reach out to schedule your meeting.