General Market Talk

[Dustie]

I bailed on my 401k today

It's tempting, but I've sold at the bottom before, and it sucks. Right now my 401k is down almost 50% on the year, though, and that sucks also...

Yea Selling on the bottom is bad. And trying to pick bottoms is a fools game.

It doesn't matter with a 401k, but if you have standard investments, alot of people are locking in tax losses. Basiccly it means selling, taking the loss, and then reinvesting in something else. So you turn the money right back into the market, but you lock in the tax deductions.

Its one way to take a little advantage of the situation and pay less taxes.

If I sell and re-buy the same stock to lock in a loss, does that have any affect on my ability to write off the loss?

Also, lets say I sell and lock in 12,000 in losses. I read that the limit you can write off per year is 3,000 but you can carry forward the remainder and continue to write the rest off (3,000 per year) over the next 3 years. Is that still the case?


CK, have you had any problems with Sharebuilder? I was going to try it out but I haven't made the effort to switch from ETrade and Fidelity.

[Breand]

I really believe we'll be booming again in a few years. My portfolio has been slammed, but i've kept on buying. I've even upped my 401k contributions starting in December.

Im still BUYING 100% in stocks right now, Ive just moved the majority of my existing holdings into bonds.

[Grieve]

If I sell and re-buy the same stock to lock in a loss, does that have any affect on my ability to write off the loss?

You can't do that - wash sale rules. If you buy the same stock (or even a similar stock) within 30 days, you don't get to deduct the loss from the sale.

[Dustie]

If I sell and re-buy the same stock to lock in a loss, does that have any affect on my ability to write off the loss?

You can't do that - wash sale rules. If you buy the same stock (or even a similar stock) within 30 days, you don't get to deduct the loss from the sale.

Foiled again! But I can do that if I wait 30 days?

[Grieve]

Foiled again! But I can do that if I wait 30 days?

Yep, if you wait 30 days you are fine. The risk, of course, is that it will shoot up in the meantime.

[Dustie]

Foiled again! But I can do that if I wait 30 days?

Yep, if you wait 30 days you are fine. The risk, of course, is that it will shoot up in the meantime.

Hmm, this is tough. I have a lot of losses I want to lock in! =)

[Zephyrs]

I did not see the videos, but would that be something if the Mexican Peso is more than the American dollar lol.

Nah all our currencies will go away and will be replaced with the "Amero"

[Dustie]

I did not see the videos, but would that be something if the Mexican Peso is more than the American dollar lol.

Nah all our currencies will go away and will be replaced with the "Amero"

Nah, all currencies will go away and be replaced with "the shot gun"

[Zephyrs]

Best buy credit rating dropped to BBB which has resulted in the stock price drop on Wed

http://www.reuters.com/article/hotStocks...5S20081119

Last week, the No. 1 U.S. electronics chain slashed its profit forecast, citing "seismic changes" in consumer behavior amid a deepening economic crisis. The company said its sales at stores open at least 14 months fell about 7.6 percent in October after declining 1.3 percent in September.

Best Buy "will be more challenged than previously expected by the current weak economic environment in the U.S.," S&P Ratings Services said.

[Vanraw]

Foiled again! But I can do that if I wait 30 days?

Yep, if you wait 30 days you are fine. The risk, of course, is that it will shoot up in the meantime.

Hmm, this is tough. I have a lot of losses I want to lock in! =)

My take is look around and same sector stocks. If you really believe in them. The real question people have to ask, is would you buy a stock you own right now? People get tied into the emotion of the fact that the stock took thier money...

In my opinion....

In this market, every day you decide to keep a stock, is a choice that you would buy it. So look around and if you have stuff in your portfolio that has taken a loss, and you ask your self, "Would I buy that right now, if I didnt own it"? If the answer is yes, then keep it. If the answer is no, then lock in your loss and buy something else.


On the question of the 3k, yea that's one of the deals. Its the gift that keeps giving. So a 12k loss could be deducted over the next 4 years.

[Flab]

I've also increased my 401k Contribution. If it comes to the point where the market implodes and my 401k is totally gone I'm gonna have to worry about alot more than what happened to my retirement money.
Ill probably be raising pigs so Master/Blaster can use the feces to power Barter-town.

[Thudz]

I upped my 401K contribution from 6% to 10%. I have a good 30+ years till retirement so selling now would be insane. Best time to invest is when the market is down. If you have less than 10 years till retirement you shouldn't of had more than 10-20% in the market anyway.

[Moristans]

Ill probably be raising pigs so Master/Blaster can use the feces to power Barter-town.

lol

I have a PRS-like retirement plan. I'm still a ways away from retirement so I haven't looked into how it works, really. I'm not sure if I can up my contribution.

[Breand]

God I love this video, Peter Schiff calling everyone out on their stupidity since 2006.

http://www.youtube.com/watch?v=2I0QN-FYkpw

Highlights:

Bren Stein saying: "I think stocks will be a heck of a lot higher a year from now than they are now." -Ben "Creationist" Stein in August 2007

And that Merril Lynch was an amazingly cheap buy when it was at $77. It closed yesterday at $8.34.

Retard extraordinaire Tracy Byrnes saying that Goldman Sachs was like Dolce and Gabana on sale at $177. closed yesterday at $53.

Just listen to ALL the people laughing at him, thinking everything he says is a joke.

[Singularity]

Best buy credit rating dropped to BBB which has resulted in the stock price drop on Wed

http://www.reuters.com/article/hotStocks...5S20081119

Last week, the No. 1 U.S. electronics chain slashed its profit forecast, citing "seismic changes" in consumer behavior amid a deepening economic crisis. The company said its sales at stores open at least 14 months fell about 7.6 percent in October after declining 1.3 percent in September.

Best Buy "will be more challenged than previously expected by the current weak economic environment in the U.S.," S&P Ratings Services said.

Yeah, I purchased 15 shares this past week at roughly $17/share. I think the price will continue to waffle until Feb/March, maybe even reaching a low sometime around then. If the stock goes to something ridiculous (like $10/share or less) due to low sales in the fourth quarter, i'm going to risk it and buy a bundle. Even if it doesn't fall that low, i'll probably keep buying as long as the price is below $30/share.

I really believe that two or three years from now, my portfolio will show this to have been a wise manuever. I don't really see Best Buy folding, and there is plenty of room for growth - even in the US. Add to the fact they are building in China and a few other emerging markets, I think it's worth the risk.

Two or three years from now if the the price is above $40/share, then my gamble will have paid off big time. If Best Buy stock tanks, then so what? I've lost a portion of my disposable income - nothing more.

So...let's go Best Buy! Make me happy! :wink:

EDIT: Dustie, i've only been using ING Direct's Sharebuilder for 6 months, but it's awesome so far. Granted, I haven't sold anything in that time, but i've bought upwards of $1000 through the service. It's very cheap and reliable (their basic service is free, with $9.95/trade or $4/automatic investment), and the best thing is that there is no minimum required. Want to invest with only $500, $100, $50, or even $20? Just open an account and go for it! Great service for the serious investor or those who like to "play around", like me.

[Vanraw]

FYI, I use etrade and have for years. 9 bucks a trade, and they have nice tools. If you trade enough you get Level 2 trading data.

My biggewst concern though is if they will survive. Their stock is under a buck now. Looking at selling and moving to another broker.

Anyone use Schawb?

[amins]

I use Schawb. They're ok. When I first started trading it was a pain to get an account, just like TD. Eventually I had to call them to get it all set up. thet're a little nore expensive than other places.

I use Wolverton Securities for all my restricted shares. They're local, have been around for awhile, is a solidfirm, and I can always get ahold of my broker.

[Dustie]

Does anyone have a brokerage service that provides over 10 years worth of financial statements? It seems that most only provide 5 years (and I don't want to pay 200$ a month for Value Line).

[1000xZero]

FYI, I use etrade and have for years. 9 bucks a trade, and they have nice tools. If you trade enough you get Level 2 trading data.

My biggewst concern though is if they will survive. Their stock is under a buck now. Looking at selling and moving to another broker.

Anyone use Schawb?

I use Schwab Brokerage. IRA, and Banking that gives NO ATM fees and Interest bearing checking. I have called them a few times and have always been answered by the 1st person I call. Schwab is great.

I would watch out with E-Trade. They are close to being insolvent. Just search any news provider.

[Zephyrs]

God I love this video, Peter Schiff calling everyone out on their stupidity since 2006.

http://www.youtube.com/watch?v=2I0QN-FYkpw

Highlights:

Bren Stein saying: "I think stocks will be a heck of a lot higher a year from now than they are now." -Ben "Creationist" Stein in August 2007

And that Merril Lynch was an amazingly cheap buy when it was at $77. It closed yesterday at $8.34.

Retard extraordinaire Tracy Byrnes saying that Goldman Sachs was like Dolce and Gabana on sale at $177. closed yesterday at $53.

Just listen to ALL the people laughing at him, thinking everything he says is a joke.

Peter Schiff has predicted a lot of the current turmoil in the markets and the economy. If you follow his predictions though, he is currently advocating exiting the American market all together. The basis for this recommendation is that the US dollar is going in the shitter very fast and therefore because the American stocks are tied to the US dollar all of those stocks are also bound for the shitter.
He advocates at present to put all your cash into foreign markets / currencies.

Also love how he calls gold (at that time at $83) to go to $1000 within a year (which it did.) He recently predicted Gold to $2000 next year and $5000 by 2012.

[Airyth]

hmm i've never put much thought into the financial state of E-trade considering i've been using them for a while.

If they were to go under what would happen to all the accounts open through them? Would my portfolio be transfered to another investment house or does anyone know how that works?

[1000xZero]

hmm i've never put much thought into the financial state of E-trade considering i've been using them for a while.

If they were to go under what would happen to all the accounts open through them? Would my portfolio be transfered to another investment house or does anyone know how that works?

I would say that it probably would be transferred but the question to ask is how long it would take to access your $$$. It might be a while.

I am not saying to leave E-Trade but knowing its condition is a good thing.

BTW the FDIC does guarantee all money in banks up to $250,000 (now) but it can pay this back over a 99 year period. This is true.

[Zephyrs]

RE:
E-Trade Questions

About 5 percent, or $1.4 billion, of the customer deposits are not insured by the Federal Deposit Insurance Corp, according to the company.

It is already suspected if they do not secure bailout money it will fail

http://www.reuters.com/article/ousiv/idU...NM20081121

[1000xZero]

RE:
E-Trade Questions

About 5 percent, or $1.4 billion, of the customer deposits are not insured by the Federal Deposit Insurance Corp, according to the company.

It is already suspected if they do not secure bailout money it will fail

http://www.reuters.com/article/ousiv/idU...NM20081121

That is Bank Deposits, what about Brokerage, IRA, SEP, etc. accounts? All those are not FDIC insured.

[Zephyrs]

That is Bank Deposits, what about Brokerage, IRA, SEP, etc. accounts? All those are not FDIC insured.

no doubt.