Appetite for Risk Grows

[RetireBy90]

Read a WSJ article this morning, title as above. Said esp younger were risking more. Fidelity signed up 1.2M new retail clients March-May and others also. Reports a 22 year old laid off used the $1,200 stimulus check. Now she turning to options trading. Another invested entire life savings of $50K in Hertz and doubled it by next day. Another has 1.5 million twitter followers says "Stocks can only go up" "Two rules to investing, stocks only go up and if you have problems see rule No. 1"


Irrational exuberance ? Got me worried. I'm not taking cabs any more with the virus thing but wonder how many cab drivers are flipping stocks now like houses and stocks in 2008.

 

[copyright1997reloaded]

For the first time in many years, I'm thinking about selling some of my Apple ($AAPL). I've been busy doing outside projects, and see this morning it is up over 9% in the last five days.

Apple is my largest single stock holding (by far), and with this jump now represents over 10% of my net worth. All from a single $1900 purchase (100 shares) in 2001. (Unfortunately, I sold some when it split 2 for 1 in 2005.

Selling it (all) is a huge tax problem as it sits in a non tax-deferred account. Even selling a bit can easily push me into the 32% bracket (single). What to do? I'm looking at out of the money puts, but insurance costs $. Also, doing this strategy just a couple of days ago would not have worked out so well. Alternatively, do a call or two and just deal with the tax issue if it continues to run and I get called (or buy back the call and take the loss).

So I'm stuck here like a deer in the headlights. Maybe the best action is just to go outside and continue on my summer projects.

 

[RetireBy90]

So I'm stuck here like a deer in the headlights. Maybe the best action is just to go outside and continue on my summer projects.

That is normally my reaction. I had 250 Apple and sold 50 about a month ago thinking it was too high.

 

[audreyh1]

QE driven asset inflation again! Just like 2013-2019.

DH has been selling AAPL due to the recent incredible run up to new all time highs.

 

[ERD50]

Reports of individuals mean nothing at all other than some 'journalist' wanted a story. Without some overall statistical element, ignore it - or assume the opposite is true, considering today's media, that's probably a safe bet.

It could be that more young people are getting the message about the benefits of a high % AA when you are young, and that lows mean you are buying more, and just wait it out. That's a good thing. But a boring story.

-ERD50

 

[Speed Racer]

AAPL is taking off again on reports it's moving to ARM based Macs later this year, which apparently is a pretty big deal.

 

[audreyh1]

Oh, right. DH mentioned yesterday there were rumors about dropping Intel.

Still, too rich for him!

 

[Sunset]

For the first time in many years, I'm thinking about selling some of my Apple ($AAPL). I've been busy doing outside projects, and see this morning it is up over 9% in the last five days.

....

Selling it (all) is a huge tax problem as it sits in a non tax-deferred account. Even selling a bit can easily push me into the 32% bracket (single). .....

I don't think so....
I thought the max rate on long term capital gains was 20%, I tried to find the order of taxation but couldn't.
Maybe someone else knows for sure

 

[copyright1997reloaded]

I don't think so....
I thought the max rate on long term capital gains was 20%, I tried to find the order of taxation but couldn't.
Maybe someone else knows for sure

Yes, 20% on the cap gain, but I have other income to worry about.

Also enough capital gain can result in Net Investment Income Tax (NIIT) issues. With Single, that starts at 200K level, and that would add another 3.8%. Ask me how I know this.

 

[Montecfo]

I lightened quite a bit yesterday on equities. I'm holding everything I bought during the selloff, at least so far.

I will gradually redeploy or, if we get a selloff (which I expect), less gradually.

 

[RetireBy90]

AAPL is taking off again on reports it's moving to ARM based Macs later this year, which apparently is a pretty big deal.

Word is that it will improve profit margins on PCs

 

[Montecfo]

For the first time in many years, I'm thinking about selling some of my Apple ($AAPL). I've been busy doing outside projects, and see this morning it is up over 9% in the last five days.

Apple is my largest single stock holding (by far), and with this jump now represents over 10% of my net worth. All from a single $1900 purchase (100 shares) in 2001. (Unfortunately, I sold some when it split 2 for 1 in 2005.

Selling it (all) is a huge tax problem as it sits in a non tax-deferred account. Even selling a bit can easily push me into the 32% bracket (single). What to do? I'm looking at out of the money puts, but insurance costs $. Also, doing this strategy just a couple of days ago would not have worked out so well. Alternatively, do a call or two and just deal with the tax issue if it continues to run and I get called (or buy back the call and take the loss).

So I'm stuck here like a deer in the headlights. Maybe the best action is just to go outside and continue on my summer projects.

Trim a bit, fund your favorite charity, established a donor advised fund.

 

[copyright1997reloaded]

Trim a bit, fund your favorite charity, established a donor advised fund.

Already have one, but a good consideration (could add a bit to it). Thanks.

 

[Dash man]

I sold off a quarter of my AMZN holdings yesterday, and put the money into more down to earth stocks. It’s in a Roth, so fortunately no tax issue. But this will be a bad tax year for other reasons.

 

[kgtest]

Its amazing how many of my friends decided "now was the time" to get into the markets. Via various ways, individual stocks for the buddy down in Bay St Louis, MS... RobinHood for my webDev buddy in the dakotas... a contractor neighbor who keeps asking for tips and various others.

Me, I just keep plowing money in every week.