2021 Stock Market
- Thread starter SoapyCy
- Start date
Or just tax it a reasonable rate.
I almost bought some more when it ran into some resistance around $47k. Ended up not pulling the trigger since my original 2% allocation has already grown to 9%. Instead, I went a slightly different route. Created an account on BlockFi, and deposited dollars in there. The dollar position earns 8.3% APY, then I have the interest to be paid in BTC, which then appreciates at 6% APY plus price action.
Here are a couple charts that I love about BTC.
1) You can place a fairly small % of your portfolio (1-5%) on it. If BTC goes to zero then your down side is minimal, however your upside is pretty asymmetric if it continues to grow in market cap, which right now BTC still fairly small market comparatively.
2) Looking at BTC on a log scale instead of linear, and comparing it to the four year halving cycles, paints a much clearer picture.
Green energy would be a smart long term play, I sold all my oil and gas etf's at the beginning of 2020, they were just never coming back. Took a nice loss to offset some great gains.
I'm all in on legalizing weed with an immediate excise tax. Two of our friends in D.C. are looking at the strength of the Stock Market and proposing a couple of untapped revenue sources. 1) a tax on unrealized capital gains 2) a tax on financial transactions. The Senator from Oregon who is Chm. of the Senate Finance Committee is advocating for #1 which is simply tapping in to an estate prior to death. #2 would trigger lots of revenue as the volume of daily trades has escalated. I am assuming #1 would be a one time deal and that a second capital gains tax would not occur in an estate tax. But never underestimate the politicians' abilities to source taxable revenue.
Taxing unrealized capital gains is a dangerous game. I’m all for figuring out a way to tax the Bezos of the world but I think that can have unintended consequences. I know I have a crap ton of unrealized capital gains. That doesn’t mean I’ve made that much money. You’d have to make sure you don’t hurt small time investors and you’d also have to worry about tanking the market as some of those big players sell off their shares.
What I've read is a slightly different take to your unrealized gains comments. The position I've heard they are discussing is the elimination of the "step up in basis upon death" feature on gains. So you parents who bought a particular stock for 20k 30 years ago is now worth 200k. Under current tax code, you inherit those assets with a cost basis of 200k (market value on date of death). You could conceptually sell it and incur little to no taxes. The proposal is to remove that step up on basis so in that same scenario, you would then be liable for 180k of long term capital gains.
You wouldn't have to pay the taxes when you inherit it, only when you sell. But it could be a big change compared to how things are done currently.
Crap ton of unrealized capital gains and small time investors in the same post.
This is where getting in the weeds of this legislation will be key.
Either way if anything like what you describe passes the market will throw a fit. It's the American Way
I mean I guess it is a bit of an oxymoron but my portfolio is up over 80% since I created it. Some of that is a timing thing as I finally created it after the market tanked but I would say I have a relatively high percentage of unrealized gains compared to my net worth.
Thinking folks can be "good" investors and still small at the same time. Meh. What do I know.
Really not onboard with expanding the reach of the taxman.
If you want to tax the Bezos and Gates of the world then implement a progressive consumption tax. Taxing capital = bad, taxing consumption = better.
Back to the market. Are we going to see inflation soon? A lot of cash has been injected into the economy the last year.
Cramer sees it coming
With the stimulus and an honest to goodness infrastructure plan it's very possible the spectre of inflation is going to smack us pretty good.
We've stimulated a functioning economy (Trump). We are now putting straight jet fuel into the economy.
Will be interesting to see how all of this works out.
It will be funny what happens to housing and real estate prices and equity values when the Fed tightens significantly.