Dear Valued Clients, Friends and Family,
I hope you all had a wonderful Thanksgiving surrounded by family and friends. It’s been an eventful week with the newest Covid-19 variant, Omicron, moving into the U.S., Dr. Oz is attempting to move on up to the U.S. Senate, Tesla is moving its headquarters to Texas, and the market is moving all around.
Omicron, the latest variant of the Covid-19 coronavirus, was confirmed to hit the U.S. on Wednesday. The first case was detected in San Francisco in a traveler who returned from South Africa on November 22nd. Researchers at the University of California, San Francisco, detected the variant by using genomic sequencing. This individual was fully vaccinated and only has mild symptoms so far. Close contacts to the patient have all tested negative currently. State officials say that there is no reason to panic, but to remain vigilant. They do not plan to issue any new lockdowns.
TV personality and celebrity physician, Dr. Mehmet Oz, announced that he is running as a Republican for an open Senate seat in Pennsylvania, in 2022. The 61-year-old doctor is a heart surgeon who first came to the public’s attention as a regular guest on “The Oprah Winfrey Show”. He then began his own daytime show where he dispenses medical advice on a wide range of subjects. He earned his medical and business degrees from the University of Pennsylvania and is considered a front-runner in this race.
Yesterday, CEO Elon Musk announced that Tesla’s headquarters are no longer in Palo Alto, California. He made good on his promise to leave California and packed up shop and moved to a location next to Gigafactory Texas in Austin. The Model Y will be produced in small batches to alleviate the pressure from Tesla’s sole plant in Fremont, California. Based on Musk’s past comments, the Austin plant will also be responsible for the Cybertruck and Semi in the future. Rumors speculate that Musk stands to save an estimated $2.5 billion in capital gains taxes from the move, a possible motivator behind the decision.
Markets have bounced around this week as investors assess the impact of the new Omicron variant. The Fed’s declaration that it will no longer use the term “transitory” to describe inflation has added to the turbulence, raising fears of interest rate hikes. They continue to reduce monthly asset purchases but have signaled that they may finish sooner than the first half of 2022, as originally planned. As of last Friday, the S&P 500, Dow Jones Industrial Average, and the Nasdaq have declined by (-2.6%), (-3.1%), and (-2.9%), respectively. The declines have brought the S&P 500 down by nearly (-2.7%), and the Dow and Nasdaq by over (-4.0%) from their all-time highs.
As a reminder, this Monday, December 6th our office will be undergoing construction and we will not be available for in office meetings, but we will be available to meet in-person at alternate locations, by Zoom, or conference call. We will continue to update you on the progress. We are looking forward for you all to see our updated office space in Irvine.
We are now in the final month of the year, if you have any items you would like to discuss for year-end, such as charitable planning, your Required Minimum Distribution, contributing or opening a retirement account, charitable contributions, gain/loss tax planning or simply review your accounts, please call our office at (888) 253-0288 or email Sunni@apriem.com.