Recent headlines have left me scratching my head so often that it’s starting to leave a mark. Here are a few things that are definitely making me go hmmmm.
As a quick follow up on my most recent column, a few days ago a judge in Texas put a hold on FinCen’s new beneficial ownership (BOI) filing requirement for millions of US businesses. This new government filing was intended to combat tax fraud and money laundering. Nonetheless, it’s been derailed with this new legal ruling that invoked the tone of “Don’t tread on me!” My advice to business owners who haven’t yet done their BOI filing is to remain prepared. If the government wins its appeal, you might have to disrupt your Christmas holiday to get it done in time.
Now, here’s a parting thought for the skeptics out there. Sometimes transparency isn’t just burdensome red tape. Don’t you think it’s sound public policy to do what we can to combat tax cheats and criminal activity?
Speaking of transparency, or complete lack thereof, we’re now just learning that Elon Musk reportedly spent $250 million of his own money during this past election cycle. Amazingly, that estimate is likely on the low side, when all things are considered.
We’ve likely just lived through the nightmare scenario many pundits warned us of when the Supreme Court legalized the injection of an unlimited amount of corporate and private money into our politics. To learn weeks after an election that the richest man on Earth invested this much of his own money in exchange for an unknown level of power and influence is nothing less than alarming.
For members of Congress and for his business competitors, Musk’s growing influence inside government circles feels like an existential concern. They are scrambling to stay in Musk’s favor to benefit from his unelected circle of influence. His appointment as the head of the new Department of Government Efficiency (DOGE) arms him with additional massive, unaccountable power. Musk’s growing influence over major industries and government policies is becoming very clear. When private ambitions start steering public policy so blatantly, it’s hard not to worry about the negative effects of outright crony capitalism. It’s simply not a good economic system.
You might be asking, what does my head-scratching have to do with your money? Well, I suppose it’s to say that we should all prepare for some turbulence ahead and you might want to proactively adjust your investment portfolio. Of course, since the future is always unknown, everything in moderation remains sage advice. But, with the stock market hitting record highs again and again, it’s probably also sage advice to remind you that an ounce of prudence might save you a pound of regret.
