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- Global Market Roundup: Will the Bailout Work? [view article]
- 36-Month ETF Correlations with Russell 3000 [view article]
- How to Profit from This Sell-off (100% Guaranteed): Tax Loss Harvesting [view article]
- Heavily Shorted Lead the Declines [view article]
- Mid-Year Report: Is a Summer Turn-around Still Possible? [view article]
- Russell 3000 Sheds Nearly $2 Trillion in Cap Value [view article]
- Analyst Buy and Sell Ratings for Stocks and Sectors [view article]
- ETF Fund Flows (Week Ending 5/9/08) [view article]
- Exchange-Traded Funds and Closed-End Funds by Asset Class, Type and Provider [view article]
- Core Building Blocks: Large, Mid & Small Cap US ETFs [view article]
- ETF Fund Revenues: A View from the Bottom [view article]
- Recent Key ETF Performance [view article]
loading ...Recent IWB Articles
- Global Stock Markets: The Crash of 2008?
- Global Market Roundup: Will the Bailout Work?
- How to Profit from This Sell-off (100% Guaranteed): Tax Loss Harvesting
- Merrill Lynch's Strategies for a Volatile Small Cap Market
- Heavily Shorted Lead the Declines
- Mid-Year Report: Is a Summer Turn-around Still Possible?
- Russell 3000 Sheds Nearly $2 Trillion in Cap Value
- Analyst Buy and Sell Ratings for Stocks and Sectors
- The Best Have Been The Worst
- ETF Fund Flows (Week Ending 5/9/08)
- Full List of Articles »
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Global Market Roundup: Will the Bailout Work? [view article]
@Bill James: grammar check, please!@Shiv: "take time to work its magic"?? There is no magic to it. And it will not work. That was a scam, a farce...it serves only the banks and to further indenture the people, by handing over yet more control to the government. The real solution? Massive cuts to government and massive TAX CUTS. I'm not talking 5% or even 10%. I'm talking, cut the federal government to the core, and a flat tax never to exceed 10% on *anyone*. That is just...and it's overdue. Sooner or later enough people will wake up and demand it. This economic situation may just be the time that it happens. Hopefully!! Reply
Global Market Roundup: Will the Bailout Work? [view article]
The rescue package will take time to work its magic. And while people watch for indicators of success from implementaion of the rescue package, there is a possibility that better opportunities might emerge. This is time when perceived risks are higher than real risks. In the short term, corporations may well find earnings potential fall below long term earnings potential; and this might cause better entry points. However several economic risks are already priced in. This is a market for long term investors (5/6 years). Sector allocation is important, overweight positions need to determined based on which sectors will benefit most during the next cyclical upswing; also to consider is over-weighting the presently undervalued sectors; and finally consider the sectors which outprform based on where we are in the economic cycle today. Investors should also not forget to rebalance portfolios more frequently than in normal times. Finally, do not forget diversification across asset classes. Its a good market for traders too; volatility is high which is good for day traders. Positional traders can also look forward to an up quarter followed by a re-test of lows. This is one of those times when there is opportunity for everyone, regardless of style - short term/long term/trader/bull/bear. The only styles I would say might feel a bit left out is growth; because I think this is a time value will outperform and off course, small caps should lag large caps. ReplyGlobal Market Roundup: Will the Bailout Work? [view article]
End government control over rights of way, implement Performance Standards for power generation and transportation and in 6 years. seekingalpha.com/artic...Building the Physical-Internet will likely working family disposable income can increase by $3,200 per year. www.jpods.com/ar_Burde... Reply
Global Market Roundup: Will the Bailout Work? [view article]
Excellent review! The Doom & Gloom scenario seems almost universal - indicating that perhaps the worst has already been discounted. But "hold on" for more volatily until the dust settles and investors begin looking past the devastation to the inevitable economic and market recovery. ReplyHow to Profit from This Sell-off (100% Guaranteed): Tax Loss Harvesting [view article]
I get it now - thanks a lot for your help guys! ReplyHow to Profit from This Sell-off (100% Guaranteed): Tax Loss Harvesting [view article]
drvelocity,Suppose you take your $3000 loss now, in 2008 and suppose you are in the 25% tax bracket. That $3000 loss offsets your income and reduces your taxes by either $750 or $450, depending on if you've owned the investment for a year or not. That $450-750 savings is guaranteed to you in January if you decide to harvest the loss. And guaranteed savings are as good as earnings! To avoid missing out on any possible rally, you immediately purchase another investment. You are now roughly back where you started investment-wise, except you've lost trading fees of $20 or so, and gained the tax savings of $450-750.
If your tax savings only amounts to $450, that's a 6.4% guaranteed return on your $7000 within 6 mos. AND you still get to invest your $7000 during that time. If you've owned it for less than a year, that $750 in savings equals a 10.7% guaranteed return on $7000.
If you decide to hold the original investment on the other hand, it could go up or down. It is impossible to assign probabilities to any outcome. In that way, you are in exactly the same situation as if you had switched to a different investment. Only in this case, both your trading fees and tax savings are zero. Reply
How to Profit from This Sell-off (100% Guaranteed): Tax Loss Harvesting [view article]
You are betting that the stock WILL GO UP BY 114% in the next 5 years. What if it doesn't? What if it doesn't even get back to $10,000 in the next five years? What if it continues to fall farther over the next five years? What if Obama changes the capital gains rate? What if Obama discontinues the ability to write off any losses?Take the write-off now while you can. Reply
How to Profit from This Sell-off (100% Guaranteed): Tax Loss Harvesting [view article]
I'm still not catching on, but thanks for the explanations guys.Okay so let's say right now my entire portfolio is a single stock. Right now my position is $7000 which is down $3000 from where I bought it at $10,000.
Scenario one - I sell the stock now, put a $3000 loss on the books, and repurchase a similar stock. Five years later, the new stock has appreciated from $7000 to $15,000 and I sell - a gain of $8,000. But because I still have the $3000 loss from earlier, I only pay capital gains on $5,000 of those earnings.
Scenario two - I just hold on to the original stock instead of selling anything. Five years later, that stock appreciates from $7000 to $15,000 and I sell. As the original purchase was for $10,000, I owe capital gains on the $5,000 difference.
So as far as I can see it's the exact same thing - where am I going wrong? Reply
How to Profit from This Sell-off (100% Guaranteed): Tax Loss Harvesting [view article]
There's always opportunity - even in a falling market, as this article points out. I've always wondered about the standard advice not to make investment decisions based on taxes. Taxes are financially consequential, aren't they? Plus, they're 100% predictable, which can't be said for the market.On a side note, I wonder if stock and bond prices will fall (and expected yields have to rise) if the 15% cap gains and dividend rates end. I suspect that these bits of legislation explain much of investors' bubble-inflating behavior in recent years, flipping real estate, commodities, and mortgage backed securities because low taxes increased the net yields. Reply
How to Profit from This Sell-off (100% Guaranteed): Tax Loss Harvesting [view article]
Dr Velocity, think of it like this. You realize the loss now, and purchase something along the same lines. You can carry those losses up to something like 10 years. If you sell the new ETF or stock at a profit you can counter the capital gains with the losses you take now. Its a double win for you. No taxes and you are automatically better off then if you let the current stock get back into the green. ReplyHow to Profit from This Sell-off (100% Guaranteed): Tax Loss Harvesting [view article]
drvelocity,You can get a deduction NOW for the losses - at least $3,000 worth. If you have gains, maybe harvest some of those too to use the rest of the losses. If you buy back into something like the IWM to replace the SPY, then you may end up with a long term gain at some point down the road - lower rate. Reply
How to Profit from This Sell-off (100% Guaranteed): Tax Loss Harvesting [view article]
.. To pay less tax. ReplyHow to Profit from This Sell-off (100% Guaranteed): Tax Loss Harvesting [view article]
If my portfolio is already allocated in a way that I like, what's the difference between turning over everything now to get the losses on the books, and just holding the stocks until they get back into green territory? Assuming one year to get back to even, in the former case the losses now counter the gains made in that year, and in the latter case my gains are zero after one year and no taxes are due anyway. At least by keeping I'm saving on commissions, no?Reply
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How to Profit from This Sell-off (100% Guaranteed): Tax Loss Harvesting [view article]
If you are taking a tax loss on a STOCK, life is easier. Say you sell 500 shares of GE for a loss. You can harvest this loss by buying a sp500 index fund. Since GE is only a few %age points of the fund, it should meet the IRS requirements. Replying
How to Profit from This Sell-off (100% Guaranteed): Tax Loss Harvesting [view article]
srs and smile Reply