Yeah I mean ultimately it was just an easier/sleazier way to “IPO” trash at insane valuations. I made quite a bit off longing and shorting them. If I had any conviction on the shorts I’d be retired right now, but it seemed too absurd to be true.
1 Like
Looking into a HELOC for renovations. The rate is lower the more I want to borrow. What?
Probably a combination of making more money over the life of the loan the more you borrow, and some people borrowing more being actually less risky - not sure how HELOCs work in that regard, but it can happen on mortgages - if you can get approved to borrow more, you’re often a safer loan.
This will apparently shock some of you. Shelter leading the charge. FedWatch starting to shift.
When the markets are too efficient
Oops!
1 Like
I’m going to need everyone who has ever met that CFO to go through a full audit before I believe that was a mistake. GTFO lol.
3 Likes
And it’s now basically reached those numbers anyway - $19.03 instead of $19.73. Was $12.18 before the report.
Wonder if the surge blew out some shorts and forced them to cover, thus removing downward pressure on the stock price and allowing it to shoot up even after the correction?
If anyone has purchased I Bonds in the last few years and has held them for more than 1-year, you should check out the current rate and consider selling them. BIL is currently yielding 5.22% and a lot of the peak inflation I Bonds are down below 4%.
If your current effective rate is 3.38% sell today and get into BIL asap. If it’s 3.79% or 3.94% you want to hold until 3/1, when you get the entire next month’s interest. Basically holding two weeks to get four weeks worth of interest beats getting into the higher rate right away, with the breakeven being between 3.38% and 3.79%.
This will help you figure out your current effective rate: TreasuryViewer
2 Likes
Shorting applies downward pressure the moment you go short; the subsequent holding of the short position doesn’t. It’s the selling of shares that applies the pressure.
Fair point. Maybe the surge scared some other shorts out who didn’t get margin called or whatever but decided the risk was no longer worth it and covered.
If it went back up and stayed up, imo that’s the work of longs. Had it only gone up due to shorts panic-buying, in theory it would have fallen back down to what the market actually believed to be fair fundamental value.
CNBC on in the poker room…
MEME STOCK MANIA RETURNS
The DWAC/TMTG merger has been cleared by the SEC and is being put to a shareholder vote. I was under the impression that this meant it’s now a lock to happen, but people are saying it’s not (but aren’t providing reasons). Anyone here know why it might not happen?
Like who the hell would vote for their $45 ticker to drop back to $10? I’m obv missing something.
It made 25% for me and was stable while everything else has been going down this month.
1 Like
Are you saying you specifically sold the shares that had a lower cost basis? That sounds less than tax optimal.
IRA, doesn’t matter. I’m not rich enough to have money invested outside retirement accounts.
I think some people are reluctant to put money into retirement accounts because they might need it before retirement – say for a house down payment, or whatever. So they put it in regular brokerage accounts instead. Those people should be making contributions to Roth IRAs.
I am confident about this because the withdrawal rules for Roths are very friendly. Suppose you contribute 10k to a Roth, it grows to 15k, and then you want to take 10k back out. This is tax and penalty free. The withdrawal is not pro-rated – contributions come out first. Since Roth contributions are after tax dollars, there is nothing to tax in that 10k. Taking out the gains early can be a problem but even there tons of exceptions exist to avoid penalties.
So I have 60 days to complete a transfer from one IRA to another, right?
Situation…
I have $10,000 in a Roth IRA at Brokerage A, and $10,000 in a regular brokerage account at Brokerage B. I open a Roth IRA at Brokerage B, withdraw $10,000 from the Roth IRA at Brokerage A, immediately take $10,000 from the regular brokerage account at Brokerage B and move it to the Roth IRA at Brokerage B. I then move the $10,000 from Brokerage A into the regular brokerage account at Brokerage B.
All good, right?
As far as the IRA transfer goes, sure. The selling and buying from the brokerage will trigger a taxable event though and you want to be careful to avoid a wash sale. I’m assuming the transfer from brokerage to IRA involves liquidating whatever you’re holding and transferring cash. I’m not sure if directly transferring stocks is possible and if so what the tax implications would be. Probably would be equivalent to selling though, the IRS isn’t just going to allow you to make your cost basis disappear by moving it to a tax sheltered account (that loophole is reserved for rich people trading real estate).
1 Like
The brokerage account is just in BIL and hasn’t been in it for long (was just sitting there in cash when the interest rate was reasonable), so I’ll trigger a taxable event but it should be miniscule. Nothing will be at a loss, so it shouldn’t be a wash sale.
Didn’t know what a wash sale was, though, good to know for the future.