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Stock Thread 2018

UDRider said:
Hmm so basically contribute to IRA and roll over to Roth?

EDIT: NM I was confused. For traditional IRA income limit is on tax deduction.

So if I contribute to traditional IRA, after tax, no deduction, then convert to Roth IRA what is tax consequences?
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From my reading, you'll pay the taxes on whatever that Traditional IRA made but that's it.

If you put max into a traditional now and a few months later roll it into a Roth, that's going to minimal gains.
 
UDRider said:
Can someone explain this
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Basically when the curve inverts, you get more interest for 1 year notes than you do for 10-30 year notes, which is opposite the usual happening. That puts a lot of money in one year notes, and out of thirty year notes. It also can strangle stocks if short term notes are paying more than current dividend yields. It also raises the cost of doing business as short term loans become more expensive. The other bad effect is that it raises interest rates. In order for business to borrow money ( or the government) for long periods of time, they will have to pay more if the yield curve inverts.
 
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AwakeNAlive said:
i noticed a post earlier someone was investing in Tesla...

i was listening to Bloomberg news on the radio today, says that it will need to burn through a lot of cash before meeting their production goals for their mass-market car, the Model 3 and would probably be wise to raise some additional equity also



https://www.bloomberg.com/news/articles/2018-04-19/tesla-s-cash-burn-has-elon-musk-s-dreams-living-on-borrowed-time
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Tesla has been "about to fail" for as long as they've existed. :laughing

I'm an admitted Elon Musk fanboy, and have been modestly invested in Tesla for about five years now, but I recognize it's a long shot. Maybe he's Henry Ford and it's 1910. Maybe not.
 
Market has been generally down but today was a it day for me.

More SCHD
Added SCHH - real estate etf (Public storage, simon malls group, etc)
Added FB - I don’t think people can stay away from living inside a Jerry springer episode
 
Tesla is going to be a very interesting company to watch this year. Musk's recent proclamation that they will be cash positive by Q3 and will not need to raise any more money was probably his boldest and riskiest bet yet. I'm really curious whether he knows something we don't or if it's just another one of his empty boasts. This one could wind up in a shareholder lawsuit if he's wrong, particularly if the stock tanks because of it. My guess is that they'll just defer capital spending and push the new products out another year so he can keep the Ponzi scheme going a little longer. His cost of capital, in his terms at least, is basically still zero. It's obvious given how he described Tesla as having to soon become a 'real company'.
 
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Any suggestions for a low-risk place to park cash for a few days or weeks? I think I want a money market fund but not sure which is best.

Using Schwab... was looking at VMMXX but they won't let me buy it. And it's hard to find easy-to-understand details about the Schwab funds.
 
A low risk place for a few days? If its less than 100K you’re looking for a bank.
If it’s more than that I’m sure you’ll still be okay to park it in a bank for a few days.
You might want to clean it at a casino first.
 
To clarify, I need to keep it in Schwab. Just looking for a fund.
 
Buy short term Treasuries. It'll get you the same rate, no state tax. Easily sold if need be.
 
JesasaurusRex said:
all my 401k roll over moneys is still sitting in a money market fund...what should i do!?!?!?
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Just called Fidelity for a rollover today, they have my former employers 401(k). It’ll be going into my USAA IRA with the others.

Probably go 50/50 US and international whole market funds.
 
Archimedes said:
Tesla is going to be a very interesting company to watch this year. Musk's recent proclamation that they will be cash positive by Q3 and will not need to raise any more money was probably his boldest and riskiest bet yet. I'm really curious whether he knows something we don't or if it's just another one of his empty boasts. This one could wind up in a shareholder lawsuit if he's wrong, particularly if the stock tanks because of it. My guess is that they'll just defer capital spending and push the new products out another year so he can keep the Ponzi scheme going a little longer. His cost of capital, in his terms at least, is basically still zero. It's obvious given how he described Tesla as having to soon become a 'real company'.
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i doubt it very much Musk is running a Ponzi scheme. he is an innovator and an optimist.

he was counting on the smooth running of his futuristic factory (of overly automated processes) to meet the 5000 vehicles per week quota:
https://qz.com/1261214/how-exactly-tesla-shot-itself-in-the-foot-by-trying-to-hyper-automate-its-factory/



Berkshire Hathaway's Annual Shareholders Meeting was held today

https://finance.yahoo.com/news/warren-buffett-charlie-munger-lead-berkshire-hathaways-annual-shareholders-meeting-124006252.html
 
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AAPL $12 from a trillion dollar company. Once that barrier is broken is it off to the races for MSFT FB AMZN GOOG?
Is that a physiological barrier of any significance and if not which company will be the 2nd to hit the mark.
Back in the day everyone thought it would be CSCO getting there first.
 
Ok, so I need some help, because I feel I am missing something important.

Company XYZ was trading at $35. A private equity firm made a deal to buy it at $42. The open market drove XYZ from $35 to $41.80 where it's been hovering for about 4 months.

The deal is expected to close within the next 60 days.

However, Institutional investors continue to buy large chunks of stock in XYZ at $41.80.

I can't figure out why. They are going to make at best .20/share and then pay short-term gains on that. It doesn't seem to be worth the hassle to me.

Theory 1: Guaranteed .20/share is still better than a loss
Theory 2: It's a low-risk bet that another higher offer is in place
Theory 3: They are trying to get a bigger position among shareholders to drive for a higher price

What am I missing? Why else would this happen?
 
I think that if institutions really were buying up large chunks at $41.80, then it wouldn't be at $41.80.
 
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