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Stock-Age: Stocks, Options and Dividends oh my!
- Thread starter koam
- Start date
speculawyer
Member
Help me . . . . I have been mauled by a bear. :-(
I think the only buy right now is cheap beer. Budweiser here I come. No one gives up drinking, they just drink cheaper! My ibanker friends were drinking Nattie Light last weekend, normally they are bottle service guys! You know its bad when Wall St. is drinking Milwaukee's Beast instead of Kettle One.
CharlieDigital
Banned
Question: I'm thinking about liquidating my mutual funds and moving those funds into my e-trade account to get ready scoop up some deals. What is the general consensus on this? At this point, I'm about even (or even a small loss, like 3-5%) from when I first purchased the funds like 2.5 years ago. What is the impact on my income taxes?
Good idea? Bad idea? Sit it out?
Good idea? Bad idea? Sit it out?
ALeperMessiah
Member
53% of stocks on NYSE hit 52-week lows. Yikes.
ALeperMessiah
Member
CharlieDigital said:
If it's a loss you'll get a tax break. It's not dollar for dollar though, your losses will be taken out of your total income. So it would be Income - Stock Loss = taxable income. I'm almost positive that's it, but i'm not an accountant.
mrWalrus said:
Remember when oil was supposed to hit $200 a barrel and the world was supposed to end? Panic is fueling this thing. This is the second Monday in a row stocks have dropped over 600 points. It's unnatural. We're not even in a recession yet. Inflation is on pace to get cut in half. It's at the point where you really have to wonder why banks are stalling themselves out.. there is some HUGE artificial manipulation of the market going on here.
If your long term investments are negative, your income taxes will be nill because you'll be claiming the maximum of $3000 loss for long term capital loss.CharlieDigital said:
I've already lost 10% of my principle and I'm not sure if I just want to bail out to reinvest right back in...
gkrykewy said:
At this point you might as well stay in for the rest of today, as someone else said perhaps there'll be a dead cat bounce tomorrow.
It kinda depends on what you're invested in as well (eg. is your company going to exist tomorrow? would anyone miss it if it went away?). I've been out of the actual market since last August 16th when the Fed Fucked me to the tune of a lot of money. I was wagering that we were going to see the action we're seeing now back then and thus was heavily stocked with puts on the DIA and Qs. Then Bernanke in his infinite wisdom let it leak to banks all over the place that there was going to be a half point discount window cut and the market shot to the moon smacking me down with its ultimate fury.
Really tho i'm one of the worst people to give advice on taking losses. Cause sometimes I just can't bring myself to do it.. it's the most important lesson a trader can learn tho and as I stated long ago when I used to post in this thread.. I don't want to get into giving specific buy or sell recommendations because I don't want to be blamed for your success or failure.
CharlieDigital
Banned
manngc said:
I'm so very tempted at this point to eat the losses to help with my income tax situation (owed $12,000 additional last year) and to have it ready to plop down on some stock.
Ok, I'm no expert on our economy, the stock market, or our financial institutions, but weren't the effects of the bail out supposed to be immediate. Not an immediate fix of course, but some kind of relief. Why did this happen, was the bailout worthless? If so shouldn't most people realize this by now, can't we overturn the bill instead of pumping more needless money into a failed market?
Extollere said:
I don't think the bailout was meant to make the stock market, the economy or the financial institutions immediately back into healthy territory. Instead, it was meant to put a band-aid on a huge cut that will take some time.
Some investors apparently viewed it as a panacea. When it passed, however, many realized that the economy will still suck after the bailout. It just won't be a bread-line level of suck.
mrWalrus said:
My only holdings are nintendo (NTDOY) and the the janus contrarian mutual fund (JSVAX), to the tune of a combined 20% of my total savings, the rest of which is in cash. I'm not really planning on selling - and I think I have learned when to sell this year :lol
I guess I just don't expect an apocalypse, and once the panic is gone, I expect the market to return to some level of stability.
Extollere said:
There was definitely a hope that it would instill some confidence in the market, which is sorely needed right now. Unfortunately the actual bailout money is going to take 4-6 weeks to get into the system. In the meantime, we're seeing evidence that situations similar to the US credit crisis are showing up in Europe and elsewhere, which is causing a lot of the panic selling we're seeing today.
Holy shit, I'm glad I sold out of my actual NFLX stock a week ago! They trimmed guidance and are down to the tune of 12% right now
sonarrat said:
Sorry to say this.. but don't be so naive. If you believe the government's numbers then.. *shrug*
A recession isn't the end of the world.. starving one off and continuously inflating the balloon is why we are seeing what we are seeing. Houses doubling in value over 2 years? Now that was unnatural. That pace was never going to keep going.. Does anyone really think that Paulson and Bernanke didn't see this mess coming? The writing was on the wall for a looooong time.
You are right tho.. fear is what is driving this market but that's because there is plenty to be fearful of. That's not to say the depression starts tomorrow or that it will start at all. I have to believe that this is still a VERY strong country but trust is the main issue and the United States has gone to every length possible to destroy the trust of everyone out there. Thus we're seeing this 'credit' crisis. Credit = Trust.
This thing is gonna hit new lows before the end of the day.
EDIT:
btw.. banning short selling is not helping this mess at all. If anything it's compounding the problem. I know that sounds counterintuitive but.. trust me, it is. We would have seen much stronger rallies on short covering in a market like today and that rally would have gone into the close.
EDIT:
btw.. banning short selling is not helping this mess at all. If anything it's compounding the problem. I know that sounds counterintuitive but.. trust me, it is. We would have seen much stronger rallies on short covering in a market like today and that rally would have gone into the close.
Lost +/- 8000 euro over the weekend, since my governement decided to sell the bank I own stock in (Fortis) for the cheap to france. They sold all the assets, but the main holding (fortis group) still exists as an empty shell that only has some small insurance funds left.
The worst thing is: this is a bank that still made billions of euro profit every year, even their Q2 results weren't too bad considering.
They just got sold out because they couldn't get hold of any loans on the interbank market.
Damn shame. I saw people today who lost all their lifetime savings, 30.000-50.000 euro. It was the biggest company in our country and a LOT of families had stock in it since it was such a profitable and thrustworthy bank.
It's possible that by the end of the week a second big Belgian bank will face similar consequences (dexia).
The worst thing is: this is a bank that still made billions of euro profit every year, even their Q2 results weren't too bad considering.
They just got sold out because they couldn't get hold of any loans on the interbank market.
Damn shame. I saw people today who lost all their lifetime savings, 30.000-50.000 euro. It was the biggest company in our country and a LOT of families had stock in it since it was such a profitable and thrustworthy bank.
It's possible that by the end of the week a second big Belgian bank will face similar consequences (dexia).
CharlieDigital
Banned
What's the general EconiGAF consensus on Ford?
What I hated about today was the the relatively low volume.
I was hoping like Art Cashin, that we'd achieve capitulation today. Everything was selling even the defensives.
This rally at the end just signifies we might be in this sort of a shitty range for a couple of months.
Could be a good short term bottom for a Christmas Rally by the end of next week when options expire.
BTW Fed cut by 50bp is 100% prices in on the interest rate futures. 100bp is 60% priced in. Bear in mind that earlier this month they priced in 98% a 25bp cut and all booed on the trading floor when there was no change.
If we get a coordinated cut then things might start changing very very rapidly. ECB/BofE have a lot of leg room.
I was hoping like Art Cashin, that we'd achieve capitulation today. Everything was selling even the defensives.
This rally at the end just signifies we might be in this sort of a shitty range for a couple of months.
Could be a good short term bottom for a Christmas Rally by the end of next week when options expire.
BTW Fed cut by 50bp is 100% prices in on the interest rate futures. 100bp is 60% priced in. Bear in mind that earlier this month they priced in 98% a 25bp cut and all booed on the trading floor when there was no change.
If we get a coordinated cut then things might start changing very very rapidly. ECB/BofE have a lot of leg room.
CharlieDigital
Banned
mrWalrus said:
They're doing well overseas and the next Focus will be a global release. The US will finally get the Eurospec focus just as the shift towards higher end small vehicles (compared to say a Kia) is in full swing.
I dunno...seems like they have a chance to rebound if all goes well.
avaya said:
Sadly a rate cut still doesn't bring back the trust that banks have in one another. The books were cooked at all these firms and thus nobody knows who is going to be insolvent tomorrow . Everyone would serve themselves well to learn about 'Level 3 Assets' and their roll in this mess.
speculawyer
Member
Plus do we really need a rate cut? It seems a bit bizarro to try to cure this mess with a rate cute when it was too much lending & borrowing that caused this mess to begin with.mrWalrus said:
A rate cut just seems like that old adage: When the only tool you have is a hammer, every problem looks like a nail.
speculawyer
Member
And still, hardly anyone will buy:Kipe said:
1) They are fearful for their own economic position so they are being cautious.
2) They can't get a decent loan even if they wanted to buy.
3) They are afraid of rising gas prices so they want to wait for the newer cars coming on the market that will get better gas mileage.
Things just become a self-fulfilling prophecy.