Joel Redmond, Managing Director of Business Advisory Services at Key Private Bank, joins the podcast this week to provide some insights and advice for business owners. He also addresses recent legislation changes that might affect capital gains tax exclusions for certain C corporations. Brian and George break down the news and numbers of the week and discuss the overarching risk appetite of the economy, as evidenced by pockets of concentrated investment in certain sectors like AI. We also touch on the Federal Reserve, equities and fixed income, and the importance of a diversified portfolio.
Speakers:
Brian Pietrangelo, Managing Director of Investment Strategy
George Mateyo, Chief Investment Officer
Joel Redmond, Managing Director of Business Advisory Services
02:10 – The initial unemployment claims, GDP, and personal consumption expenditures (PCE) inflation data all showed the economy remains in a relatively strong position, with consumer spending being a key driver.
06:00 –the concentration of growth in certain areas, such as AI, raises concerns about the economy's risk profile.
09:16 – The economic data suggests the Federal Reserve may only implement one more interest rate cut this year, rather than the multiple cuts some had expected.
11:27 – For business owners, especially in the lower middle-market range, the podcast highlights the importance of knowing the value of their business, having proper legal and organizational documentation in order, and having access to expert legal counsel when preparing for a business transition or sale.
18:15 – The podcast also discusses a tax provision, Section 1202 of the tax code, that provides significant capital gains tax exclusions for owners of qualified small business stock, which was expanded under the recent "One Big Beautiful Bill" legislation.
Additional Resources
Key Questions | Key Private Bank
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