Oso planning to go pro
I’m dying here. Lots of texts with my daughters today. My daughter is currently sitting on something like a 9,000% gain.
Anybody buying any interesting stocks that have nothing to do with crypto?I doubled my BABA position last week, did the same with COST a week or two before that.
It seems to be one big whale right now. When he (Elon?) gets bored, it's over.The trick is to be out before the rug pull.https://twitter.com/TheStalwart/status/1383063955346710532?s=20Here's a Dogecoin wallet with $1.3 billion in it that's making some absolutely massive trades in both directions the last couple of days.
Love it and hope your daughter makes another 9000%
Yup. What I'm worried about is that when this bubble pops a lot of people with small bags are going to feel the pain, and abandon crypto... This after they've been warned that Doge is a meme coin.
The law of large numbers gets in the way really fast.Currently, Doge has a market cap of $50 billion. Another 9,000% (or 90x) move puts its market cap at $4.5trillion, or twice as much as all the Russell 2000 stocks.Currently, the entire crypto universe is $2.1 trillionEven a 5x move from here (to about $2.50) makes it larger than Ethereum.
HardsYou may be right, but I am riding it to the Final Four!! Full disclosure---I did downsize position this morning.
Have 30 minutes to spare? Give Deconstructed a listen to today.https://play.acast.com/s/1d1223a2-9d05-473b-9e79-c2b65b71d676/cc678489-7001-4f5d-9d4e-ffe807340448
When do you experts predict the precipitous drop/correction in the market? August? Sooner? I'm reading a lot of mixed things about the impact of 28% cap gains.
So people that make over $1MM a year (500k of them in the US) are going to do something else with their money that doesn't generate capital gains just to save a little on their profits being taxed? Hold cash? Invest overseas? I doubt it. A bump in capital gains tax is just returning to what it was in the late 90s. I doubt this impacts the market.
From Yahoo Finance:"And so for many investors looking to build wealth for the long term, stocks are an attractive option. And recent history suggests that higher tax burdens don't change this asset's relative merit."In 2013, although the wealthiest households sold 1% of their assets prior to the [last capital gains rate hike], they bought 4% of starting equity assets in the quarter after the change and therefore only temporarily reduced their equity exposures in order to realize gains at the lower rate," Goldman Sachs strategists wrote in a note to clients published last week. "Total household equity allocations demonstrated a similar pattern around the two preceding capital gains tax hikes."So while some wealthy investors realized gains ahead of the last increase in the capital gains tax, more than all of those sales were replaced by new flows into the stock market. In other words, higher taxes created a short-term incentive for some investors to sell stocks, but this same higher rate was not a long-term deterrent for those investors when it came to buying stocks.And so on a relative basis, stocks were still deemed the place to be even with the knowledge that future tax burdens would be higher upon sale of those assets. And Goldman expects a similar story to play out if the capital gains tax is increased this year."
I honestly just wish that this tax bump was something for me to worry about. Sadly, we're not on pace to make $1MM this year. Maybe 2022.
What if you have made significant cap gains and don't want to sell because of the taxes?
I'm also not sure those lucky enough to make 1m a year have a lot of growth options?
I've always been a long-term investor, but I'm just curious if some of you closer to retirement are concerned with a major (sustained)correction and are looking to diversify?
Then don't sell?Since it would be only a marginal tax increase on income over $1M, Goldman's analysis makes sense to me. Can't see it would change much.Speaking only for myself of course, I'm already diversified as much as I choose to be. My cash allocation doesn't swing too much based on where the markets are. I've learned I'm not great at market timing.
I plan/hope to invest for another 25-30 yrs and don't need the money so I'm not sure taking the profit is the best decision.Let's use this example: I bought a decent chunk of a stock that's up about 150% in 18 mos.. If I plan to have it for another 25+ yrs and don't need that money now is it really worth taking the profit? I know you can never go wrong with that return but as a long-term guy I figure after 25 yrs things will be just fine.