Because you can't use the loss to offset your gains
OT: Stock and Investment Thread
- Thread starter RU05
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It’s all gains for T2kplus20.
Not really. The loss is just delayed. Besides, if I wasn't stopped out, there would have been no lose anyway. So once again, what's the point? It's a push.
He is right a lot. And I mean, really a lot. However, what I value the most out of his service/research is when there is a rocky patch, he uses data and analysis to keep you focused on the big picture. At least to me, his guidance keeps me from doing anything stupid. I use his advice quite often.
It's funny, I guess because of all the 2.0-2.5% down days the past few weeks, it feels like the markets are crashing. And I know a lot of people are probably feeling pain right now. But looking at the index charts they really aren't that far off their highs. Just an observation.
True that in some ways the loss is delayed, but are you keeping track of all those wash sale losses? Unless you are playing with tiny amounts of money, the losses and gains are important to track. At least for me, I keep a very close accounting for my long term and short term gains/losses throughout the year.
For me, this has implications in the way I trade. This year, I took a ton of gains early in the year. Since, I don't want to pay taxes, I am willing to bet big on higher beta stocks particularly during this correction phase. If I am wrong and lose money, then I can offset with my gains. The total losses on these bets is discounted by 37%. I used this philosophy to make big bets on AI and SMCI which have not worked well, but also made a big bet on RGTI which has worked. In previous years, I would have never made trades in those equities at this level.
So yeah... loses and gains do matter unless you are trading very small amounts.
Very simply to track everything on Fidelity's platform. Just one click for everything on gains/losses including washes, long vs. short, by lot, etc.
It’s more about which tax bracket you are in. No way am I taking all the risk and sharing 50% of the profits with the government.
That’s assuming you’re investing in the S&P. Most of the tech stocks down about 15-20% right now.
QQQ is down less than 10% from it's ATH and basically back to where it was before the election hysteria. If one was overweight the Mag7 then yeah they're hurting right now.
Big Tech Discounts Investors Can Buy Now (GOOGL, AMZN, META)
Walmart PE is 38 and Amazon PE is 36 but AMZN future is better.
Like to get your take on why the reason for PE between the two companies. I’m happy to share my thoughts on it with you.
Maybe people tend not to trade stocks, they been told to buy and hold. Walmart has been in millions of portfolio for over50 years. People are still switching over to Amazon, I started 3-4 years ago and I now buy 90% of my purchase there because they also have the widest selection. They also have more revenue options like third party sales, advertising and servers. Walmart also has a dividend, it has performed well and people feel Walmart is a safer option.
I've owned Walmart stock since I worked there in the mid/late 90's and have held it ever since. I wish I was reinvesting my dividends in the beginning but only started about 10-12 years ago doing that. Walmart also has third party sales I believe. I got into Amazon around 2020 and pick some up every now and then. Both are long holds for me. I don't think you can go wrong with either tbh.
True but maybe in 10-20 years, AMZN will still do well and Walmart will falter.
IMHO. All the tech companies are getting hit because earnings will be impacted by the heavy AI investment. It’s also not clear if these investments can be monetized.
Both are great long holds. Such an easy way to build wealth. Buy the dips of those 2.
Many people have been saying that about Walmart for the past 20 years. One of the best online retailers turned out to be Walmart. Iconic companies adapt.
Big tech earnings at an all time high and growing. This spend is a rounding error for these cash flow juggernauts.
Yes and no, it’s only a rounding error so far, as a good portion of the spending is capitalized and not expensed. If the expected earnings from the spends fails to materialize as expected, then the expenses get amortized at a greater speed, or is written down. Not saying that’s going to happen, but that is the risk.
This belief is due to the Chinese AI company that needed cheaper less sophisticated semiconductor chip. I don’t know it’s true but the US companies still had the ability to change their order with NVDA but didn’t. This information may or may not hurt these companies. Yes, there is a question mark about future earnings. I sold these same stocks at near their top because of the quarterly trends not because of the news. It’s funny a lot of the news somehow follows the quarterly trends. I’m cautious and buying some of them back at the 15% lower price but will buy more at 20% and 25% and 35% lower. I don’t know if I’m right but you are scared , you don’t make money. You guys supposedly have a long term conviction for these stocks now you scared to buy at a lower price.
The biggest risk as per the CEOs of AMZN, META, MSFT, and GOOGL is not spending enough on AI infrastructure. Not the other way around. AI applications and uses are too far numerous to list. Almost all companies and residents of developed nations will benefit.
This moron has wrecked the market with his blunt force approach.
I agree, no more 20% returns. Glad I moved substantial amount to cash right before he took office waiting for the fall.
VZ and T getting up to levels they haven’t seen in a few years at least.
Staples, Pharma, Utilities look pretty green in the morning.
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CMG with a 4 handle now....if it gets down to the mid 30s-low 40s might not be a bad area to step in a little.
CAVA with 7 handle...that one might have more air in it to be let out though.
INTC like clockwork lol pushing back down towards the bottom of its recent trading range
NKE rejected still by that low 80s resistance but I'd say some relative strength compared to the market lately....little surprising considering China tariffs. Earnings might be the next thing that could move it one way or the other.
CAVA with 7 handle...that one might have more air in it to be let out though.
INTC like clockwork lol pushing back down towards the bottom of its recent trading range
NKE rejected still by that low 80s resistance but I'd say some relative strength compared to the market lately....little surprising considering China tariffs. Earnings might be the next thing that could move it one way or the other.
how much cash do you have available to keep buying? I am going to try and time it, and buy at the bottom.... lol. It wont work but I will try.
WMT isn't going anywhere. I remember this debate here from years ago and people thought that and I said this isn't Sears. It's essentially a staple company and as long as they're willing to adapt, innovate or just plain copy they'll be fine. They're doing as well as they've ever been and if you look at chart over the last year until recently, it's practically parabolic which is crazy for a company like WMT.
WMT and AMZN have overlap because of retail but they're not the same type of company imo and I don't view them as the same category. It's almost apples and oranges. AMZN is in other things that WMT isn't.
Great post, agreed.
COST and WMT haven't given many "good" entry points of the past few years. I bit the bullet and bought COST at $700 which was a good decision. Need to get into WMT. Little bit of a pullback, but not much.