THE WEEK ON WALL STREET
Stocks fell last week as soft economic data rattled investors focused on the Fed’s next move with interest rates.
The Dow Jones Industrial Average lost 2.93 percent, while the S&P 500 Index dropped 4.25 percent. The tech-heavy Nasdaq Composite fell 5.77 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, declined 2.91 percent.
FACT OF THE WEEK
The King of Rock and Roll teams up with TV’s reigning variety program, as Elvis Presley appears on “The Ed Sullivan Show” for the first time on September 9, 1956.
After earning big ratings for “The Steve Allen Show,” the Dorsey Brothers “Stage Show” and “The Milton Berle Show,” Sullivan finally reneged on his Presley ban, signing the controversial singing star to an unprecedented $50,000 contract for three appearances.
With 60 million viewers—or 82.6 percent of TV viewers at the time—tuning in, the appearance garnered the show’s best ratings in two years and became the most-watched TV broadcast of the 1950s.
MARKET MINUTE
Economic Data Unsettles Investors
The four-day trading week got off to a rough start as weak manufacturing data reawakened recessionary fears. All three major averages were down for the first session after the Labor Day holiday. For many, it was reminiscent of August 5, when stocks tumbled as recession worries unsettled investors.
Attention shifted to Friday’s jobs report as stocks traded narrowly. Markets initially reacted positively to news that job growth rebounded slightly and unemployment ticked down. However, selling pressure increased as the trading session progressed and investors digested the underlying data. The S&P 500 had its worst week since March 2023.
Focus on Fed’s September Meeting
The Federal Reserve seems poised to make a tough decision regarding monetary policy in its September meeting. The jobs market and other softening economic data have quickly overshadowed concerns about inflation.
However, there’s still a case to be made for a soft landing. Job growth in August was slower than expected, but 142,000 jobs were created–an uptick that some would argue is an overall positive despite missing expectations. The drop in the unemployment rate to 4.2 percent bolstered the soft-landing narrative.
Market observers anticipate a 0.25 percent rate adjustment in September, but some contend that the Fed may consider a more significant move. On Friday, Fed Governor Christopher Waller said he was open to a larger move if necessary. Chicago Fed President Austan Goolsbee and New York Fed President John Williams commented similarly during the week.
FINANCIAL STRATEGY OF THE WEEK
How to Appeal Your Property Taxes
Between 30 percent and 60 percent of taxable property has an inflated assessment, which may lead to higher property tax bills. Moreover, typically fewer than 5 percent of taxpayers dispute their assessment.
For homeowners who think their local government may have assessed their property's value too high, there are ways to appeal and potentially win a lower assessment, which may save hundreds or even thousands of dollars annually in future taxes.
The procedures and requirements for challenging the assessed value of your property will differ by state, but you should consider a number of general factors.
Determine Whether an Appeal Is Justified
Your opinion of the fairness and accuracy of your property assessment is not enough. You will need to gather facts to support your claim. One way to do that is to see how your home compares to similar homes in your neighborhood.
Check to see if there are any obvious errors (e.g., is the square footage incorrect?). If you have found an outright error, you may be able to simply bring it to the assessor's attention and get it corrected.
Consider the Cost-Benefit Ratio
Appealing your assessment may cost you money, depending on the complexity of the process and whether you choose to use professional resources. You are the ultimate judge of weighing the costs related to some uncertain financial reward, but know the cost-benefit before you start. For instance, you may not want to spend $1,000 to save $200 per year.
Use an Independent Appraiser
Your appeal will have less credence if the market evaluation is made by a local real estate agent. A comparative appraisal will carry considerably more weight when it is performed by a credible, third-party expert.
Follow All the Rules
Appeals have precise deadlines and procedures. You need to meet them; otherwise, you run the risk of losing out on the opportunity to have your appeal heard for another year. Call your local officials or visit the relevant website to familiarize yourself with the appeal process requirements.