🫧 Mr. Market is looking bubbly

Hello Everyone,

Mr. Market feels....frothy.

Enter: The Shiller PE Ratio (a.k.a. the CAPE ratio).

But before we roll out the 🟥 red carpet for this Nobel Prize-winning metric, a quick detour into everyone’s favorite subject: ✨Maths!✨

Don't worry, not too much Maths (this will be low-calorie Maths.)

Here's the simple stuff first: the standard P/E Ratio:​
🧮Price (P) ÷ Earnings per Share (E) = "is this stock expensive or nah?"
​
It’s used to figure out whether a stock might be overvalued, undervalued, or somewhere in between. It's like the Goldilocks test for equities.

But here's the catch: this only looks back the past 12 months.

So in other words, good enough for a second date, but not enough for choosing a life partner.

Enter 🧑‍🎓 Professor Robert Shiller.

Who said: “I love ❤️ Maths. But I love it more than just 1 year. I love it for 10 years!" (people thought this was soooo cool that they gave him a Nobel Prize.)

Why? Because he figured out, if we go deeper (like 10 years deep) Wall St. likes it better.

Which brings us back to the chart (which looks lofty).

The last time the Schiller PE spiked like this was the GFC in 2008, and before that, 1930s Great Depression.

That means Mr. Market might be getting a little too high.

So don’t be shocked if, sometime soon…Mr. Market puts down the bong and asks, “Wait, where are earnings again?”

🚨1099s: The IRS's least-loved party favor

You know who hates 1099s? Everyone.

😤 The people who have to send them.
😩 The people who receive them.
😵‍💫 The accountants caught in the middle.

For years, we've all had beef with the number $600. It’s small. It’s petty. And somehow, it triggered a mountain of paperwork.

🎉 Enter OBBBA

Starting in 2026 (for 2027 tax filings), you only need to issue a 1099 if you paid someone over $2,000.

So very soon, you can retire your hatered for $600, and you can start to make room in your heart ❤️ to start resenting $2,000 instead.

And it’s indexed for inflation.​
📈 Which means that number can grow with time.
📉 Which means fewer 1099s.
👏 Which means one less thing to scream about during tax season.

🏠 Housing Corner

Interest rates dropped again, but I get the feeling people are over it.

The excitement of buying a property seems to have waned, and the excitement of Gold Futures have taken it's place.

Let's see if they can get down to 5.5% in the next few rate cuts, so people could start loving real estate again.

Here's a quick list of this week housing stats:
​
🏠 Mortgage rates: 6.33% (down 10 bps)
📈 Inventory: 862,883 homes (same-ish)
📉 Price reductions? Up 41.5% (same)
💰 Median list price? $445,000 (same)
🕰️ Days on market? 111 (+1)

💸 2 more weeks, taxes are due

• For those who extended, you got 2 weeks before you need to file your taxes. Don't worry, you got this!
• Personal tax returns, Form 1040, due in 2 weeks.
• Due Oct 15th

💸 Few Days Left to Pay IRS by Check

Starting September 30th, you may not pay the IRS or receive refunds from them by check anymore.

In the future you will only be able to pay or receive refunds from the IRS electronically.

So, if you haven't already, set up an IRS.gov account.

Market Highlights

Market is mixed bag this week ~ S&P 500 $6,644 (-0.78%) ~ NASDAQ $22,484 (-1.22%) ~ BTC 111,827 (-0.49%) ~ GOLD 3,681 (+0.64%) (pretty chill week) ​

What's been going on with your Favorite CPA

​

Went on my first ever podcast this week as a guest, and the host told me that I killed it.

It's going to be published in two weeks.

As soon as it does, I'll link back to it here.

Until next week, ❤️

Romeo Razi, CPA ​Taxedright.com​

​

113 Cherry St #92768, Seattle, WA 98104-2205
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