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wall of worry
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Feb 1, 2011 16:30
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onefish posted:Thank you VERY much. There are a few core "tax implication-y" stuff I've picked up along the way, I'm sure others can go into greater detail: - When you sell a stock you obtain a capital gain. - When you invest in stock, both your capital gains and dividend income will be taxed - there are two types of capital gains: short-term and long-term - short term = stock sold within a year, taxed as if it were ordinary income(makes sense if you think about how our salaries are tax-assessed once a year), this rate is ~25% of the profit you acquired (you are not taxed on losses and can claim losses on your income tax filing) - long term = sold stock after a year, depending on where you fall in the tax bracket, you can pay as little as 5% or as much as 15% Clearly the tax advantage is towards the long term investment strategy, which is what the government wants to promote over the more volatile and speculative short term investing. Note that depending on which type of investing you do (long or short), your strategies and stock picks will differ wildly. Long-term strategies tend to cluster around blue chips and companies that are financially sound and leaders in their industry. Short-term is a completely different beast altogether that I'm not remotely qualified to talk about but if you keep reading this thread regularly you'll see periodic moments of insanity and mood swings that would rival a gathering of the Red Hat Society. - Bonds, despite lower rates of return, are attractive to investors because they offer a tax-shelter in that dividends or sell-offs of municipality bonds are not taxed federally and most state/local taxes, particularly those issued within the state you live in. However many munis don't provide reliable, timely financial reporting like public companies are required to do so. However munis backed by solid cities/states and AAA-rated are solid investments. - ETFs (exchange traded funds), or the current bees knees, are passive funds that track the markets as a whole (generally speaking). Today I read this ETF article (ignore the sensationalist headline) which blurred for me the line between ETFs and actively-managed funds, stating the case that the best results in a 10-year period were found in lightly-managed funds that were non-cap weighted (ignores market capitalization [sum value of shares]). Vanguard may have a "no stock pick" strategy but the reality is that through cap-weighing it does "pick" stocks; picking is unavoidable.
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Feb 1, 2011 16:54
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Orgasmo posted:Lots of info. Thanks. This lays out the capital gains tax stuff pretty simply, and I'll look into the other stuff. Appreciate the links and wider discussion of strategy and so on.
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Feb 1, 2011 18:30
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Trying to figure this out: what's the best online brokerage for trading smaller amounts? I have $5000 (minus 10 shares of MCP bought at $34 and 5 shares at $37).
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Feb 1, 2011 20:36
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atomicthumbs posted:Trying to figure this out: what's the best online brokerage for trading smaller amounts? I have $5000 (minus 10 shares of MCP bought at $34 and 5 shares at $37). Why don't you read the OP where it says "Selecting a broker" Hint: It starts with a Z
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Feb 1, 2011 22:12
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Orgasmo posted:- Bonds, despite lower rates of return, are attractive to investors because they offer a tax-shelter in that dividends or sell-offs of municipality bonds are not taxed federally and most state/local taxes, particularly those issued within the state you live in. However many munis don't provide reliable, timely financial reporting like public companies are required to do so. However munis backed by solid cities/states and AAA-rated are solid investments. Just want to comment on this portion of the post real quick. Orgasmo here neglects tomention the huge amount of bonds there are on the bond market besides municipal bonds. Bonds don't even necessarily have lower rates of return than stocks. High yield (HY) bonds can pay as much as 8-10% per year. This is because of the extra risk that the issuers pose to the buyer. Think Iran or Iraq: do you feel completely confident in the ability for that government to repay its debts in full? Neither do most investors. Thats why we require those issuers pay us a higher rate of return in order compensate for the multitude of the risks of lending them money. This goes for corporate bonds as well. As well, to my knowledge the only type of bond that is tax free or a tax shelter is a muni bond. These cities/states know this and will pay you a lower return since you don't have to pay taxes on the interest they give you. So while it is very nice and an extremely useful thing to have a tax free bond, they pay you a proportionately lower rate of return compared to the risk the bonds possess. quote:- ETFs (exchange traded funds), or the current bees knees, are passive funds that track the markets as a whole (generally speaking). Oh and this is just a somewhat misleading sentence I wanted to clarify. Some ETFs are indeed indexes, like SPY the S&P 500 ETF or BND the Vanguard total bond market ETF. However, there are a whole bunch of ETFs that are actively managed or not indexes as all, such as KOL or many of the country specific ETFs.
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Feb 2, 2011 03:38
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Re: NFLX http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_N/threadview?m=tm&bn=22401&tid=297422&mid=297422&tof=-1&rt=2&frt=2&off=1
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Feb 2, 2011 14:21
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If only Yahoo made people pay  for forums. Nonetheless NFLX is pushing the limits of bullishness right now, perhaps a nimble put is in order.
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Feb 2, 2011 14:32
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So as far as dividends, do you have to own a stock for a certain amount of time before they issue a dividend in order to get it? Or can someone simply buy the stock the day before the dividend release and still get it?
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Feb 2, 2011 17:01
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thepedestrian posted:So as far as dividends, do you have to own a stock for a certain amount of time before they issue a dividend in order to get it? Or can someone simply buy the stock the day before the dividend release and still get it? You can buy it the day before the x-dividend date and get the dividend. However, the stock price will then drop by the dividend amount, resulting in no change of value. The cash dividend you receive is offset my the capital loss.
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Feb 2, 2011 17:26
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SU has been paying off nicely these past couple days. Anyone else invested in the energy sector heavily?
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Feb 2, 2011 17:32
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i am not zach posted:SU has been paying off nicely these past couple days. Anyone else invested in the energy sector heavily? I have about 1k in JXI and 1.5k in VPU. I like energy as a long term buy and hold.
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Feb 2, 2011 17:50
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Foma posted:I have about 1k in JXI and 1.5k in VPU. I like energy as a long term buy and hold. Yeah, I was more active with my trading when I started, but it began to wear on me (the research required) so I just decided to make a longer term play, put a little under ten grand in an assortment of energy stocks. SU, ESV, PX, URRE (holding this from before they went up, a very small amount). I underperformed in January, but the past week has been great as oil prices continue to trend upwards.
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Feb 2, 2011 17:54
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Is there any reason why someone would choose any of the brokers over interactivebrokers? It appears to have some of the best pricing, the most access to a variety of instruments, and (appearance only) what looks to be a better trading platform. I feel like I'm missing something though, because it seems like it is targetted towards high monthly volume trading only. Is it due to the minimum commission per month and the $10k requirement to open?
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Feb 2, 2011 20:25
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Is it bad if my watchlist is outperforming my portfolio?
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Feb 2, 2011 20:36
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lightpole posted:Is it bad if my watchlist is outperforming my portfolio? Bad for me because every day I see this poo poo keep skyrocketing I feel more and more compelled to buy at prices close to 52W highs. Been sitting on a pile on money for the last two months waiting for some sort of pullback to buy in at for the next couple of years and I am just getting more agitated every day  I know the second I give in though, this poo poo is gonna tank so I am still holding steady...
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Feb 2, 2011 20:58
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Cheesemaster200 posted:Bad for me because every day I see this poo poo keep skyrocketing I feel more and more compelled to buy at prices close to 52W highs. Been sitting on a pile on money for the last two months waiting for some sort of pullback to buy in at for the next couple of years and I am just getting more agitated every day That is at the root of the problem.
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Feb 2, 2011 21:08
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Cheesemaster200 posted:Bad for me because every day I see this poo poo keep skyrocketing I feel more and more compelled to buy at prices close to 52W highs. Been sitting on a pile on money for the last two months waiting for some sort of pullback to buy in at for the next couple of years and I am just getting more agitated every day I feel ya buddy. I'm in the same boat. Just waiting and waiting and waiting for a pullback that isn't happening... lightpole posted:Is it bad if my watchlist is outperforming my portfolio? Me too. My real money is doing fairly well, but my fake money is doing better.
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Feb 2, 2011 21:22
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Cheesemaster200 posted:Bad for me because every day I see this poo poo keep skyrocketing I feel more and more compelled to buy at prices close to 52W highs. Been sitting on a pile on money for the last two months waiting for some sort of pullback to buy in at for the next couple of years and I am just getting more agitated every day Do you want to take one for the team?? Because I've been waiting for the same thing.
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Feb 2, 2011 21:25
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Cheesemaster200 posted:Bad for me because every day I see this poo poo keep skyrocketing I feel more and more compelled to buy at prices close to 52W highs. Been sitting on a pile on money for the last two months waiting for some sort of pullback to buy in at for the next couple of years and I am just getting more agitated every day I feel your pain and am really in the same position. I've been dipping my toes into some things that interest me, but only with very small positions compared to the amount of cash sitting. They are marginally working for me, but I'm not willing to keep adding to the table. I'm getting more $ then I would if the entire portfolio were in an ING direct savings account, but not by much. The biggest winner here really is Scottrade.
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Feb 2, 2011 21:40
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What do you guys think of FMCC? Been making some moves lately.
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Feb 2, 2011 21:52
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Tuff Ghost posted:What do you guys think of FMCC? Been making some moves lately. Not seeing anything that makes it special...I'd think of it purely as a speculative play. What fundamentals are backing any sort of long term investment in FMCC?
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Feb 2, 2011 23:40
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All you guys posting about how you still aren't in the market are the reason why the market still has more upside potential. There is lots of money still on the sidelines ready to push the market even higher.
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Feb 2, 2011 23:40
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Look out for POT to pull back in the coming days. A 3:1 split was declared last week for Feb 15th. Some research on the stocks last splits shows that POT makes about 8-9% within a month after the split and about 40-50% within 6 months of the split. Also, I feel that the company is in a much better standing than its ever been with current food prices at record highs. It's been a very good buy for me (picked it up in Aug '10) and I have a strong feeling that it's going to be on the up for the next few years.
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Feb 2, 2011 23:59
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Bond yields continue to soar day after day making shorting long bonds the easiest money ever for the past few months. I suspect the bankers will go with a 3rd installment of QE as well allowing this trade to continue for a long while.
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Feb 3, 2011 01:48
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MCP is up 
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Feb 3, 2011 03:53
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Cheesemaster200 posted:Bad for me because every day I see this poo poo keep skyrocketing I feel more and more compelled to buy at prices close to 52W highs. Been sitting on a pile on money for the last two months waiting for some sort of pullback to buy in at for the next couple of years and I am just getting more agitated every day Well, you could assure yourself that the stocks are going to throw off enough free cash flow over the next few years to produce what you consider an adequate return on your investment. For such stocks, future price movements take on less importance.
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Feb 3, 2011 08:41
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Nifty posted:All you guys posting about how you still aren't in the market are the reason why the market still has more upside potential. There is lots of money still on the sidelines ready to push the market even higher. this -- there needs to be some ridiculous "panic" buying before Id consider profiteering more heavily.
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Feb 3, 2011 10:25
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For the record all my retirement accounts are back to where they were if not (way) more, so, where's all those dudes who liquidated their 401ks.
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Feb 3, 2011 10:26
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What do you guys think of the movement on SIRI over the last few weeks?
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Feb 3, 2011 19:24
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So Sugar is down 10% today, cool!
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Feb 3, 2011 19:30
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I'm trying to wrap my head around this but how does V beat earning estimates and the stock barely moves?
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Feb 3, 2011 19:56
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ikillhostages posted:I'm trying to wrap my head around this but how does V beat earning estimates and the stock barely moves? market didn't find it surprising?
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Feb 3, 2011 20:15
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ikillhostages posted:I'm trying to wrap my head around this but how does V beat earning estimates and the stock barely moves?
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Feb 3, 2011 20:17
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So I'm getting free trades from my broker for the time being, he understands my trading style, and I don't want to move away from him. But the brokerage has a bad online platform. I was wondering if there was somewhere that had a great fundamentals oriented trading platform for Mac or online that I could either get for free, or with a deposit of under $3000 (i.e. no monthly fees). I'm currently using google finance but ideally it would allow me to get realtime trading data and have some useful analyst research. I don't need to actually be able to make trades on it. Is something like finviz elite the best I can do? I really don't want to have to pay monthly fees.
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Feb 3, 2011 20:30
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Bigass Moth posted:What do you guys think of the movement on SIRI over the last few weeks? I think I like it. The economy is recovering, Ford is selling like crazy. SIRI comes with all kinds of cars as a trial and more customers are using disposable income to subscribe. Stern signed a new contract so rocking the boat lower wont really happen as he will still be around for what....5 more years? I bought at .865
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Feb 3, 2011 21:41
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ikillhostages posted:I'm trying to wrap my head around this but how does V beat earning estimates and the stock barely moves? People aren't terribly interested in what Visa's done in the past quarter, they want to see how hard they're going to be hit if/when fee limits go into effect.
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Feb 3, 2011 23:21
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Mandatory WHAT THE gently caress GOLD post.
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Feb 3, 2011 23:51
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I have never understood what the allure to gold is compared to other commodities like oil that have a distinct value in our society. I realize that people are trying to invest in gold to avoid inflation, but why gold over any other number of things that will hold value compared to currency?
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Feb 3, 2011 23:53
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i am not zach posted:I have never understood what the allure to gold is compared to other commodities like oil that have a distinct value in our society. I realize that people are trying to invest in gold to avoid inflation, but why gold over any other number of things that will hold value compared to currency? Exactly, which is why I've been shorting it. I also enjoy defusing bombs, mixing meth, and unprotected sex.
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Feb 3, 2011 23:58
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