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Talking stocks, trading, and investing in general - Page 604

post #9046 of 11195
Quote:
Originally Posted by GreenFrog View Post

AMZN down 13%.

I bet it recovers tomorrow to -8%.



bigstar[1].gif
post #9047 of 11195
Quote:
Originally Posted by Pennglock View Post

Quote:
Originally Posted by Piobaire View Post

Quote:
Originally Posted by skeen7908 View Post

I never quite understood negative interest rates
If you pay a penalty on reserves isn't the net effect a reduction of the monetary base? As the BoJ is effectively removing that money from the banking system

Of course people will rather hold assets and that is the point but somebody has to end up holding the yen and paying the penalty

I understand the intention is to debase the currency but there are much easier ways of doing it that involve EXPANDING the currency supply rather than shrinking it (ie government expenditure not funded by bond sales)

There is a host of folks here better equipped to speak to this but isn't the main goal of this to get commercial banks to aggressively lend money? This is to fight stagnation and deflationary pressures, isn't it?

Yep. Monetary policy can move either the supply or demand for money. IOR and reserve requirements are the textbook instruments for targeting demand for base money.

The higher the interest the Fed is paying on reserves, the higher the opportunity cost Banks face for lending, the less broad money entering the system through the multiplier effect. And vice versa.

This relationship breaks down below 0%

The boj paying interest on reserves expands the money supply
post #9048 of 11195
Quote:
Originally Posted by skeen7908 View Post

This relationship breaks down below 0%

The boj paying interest on reserves expands the money supply

But doesn't increase velocity of money. Negative interest rate supposedly will force bank to lend and increasing velocity and pump money into the system though it could reduce money supply
post #9049 of 11195
Quote:
Originally Posted by skeen7908 View Post

This relationship breaks down below 0%

The boj paying interest on reserves expands the money supply

The interest rate is there to incentivize the bi-directional movement of money, not to increase or decrease money supply through interest payments.

In today's accommodative environment, that means that a negative interest rate deters big banks from storing their cash since they are then paying for that "privilege." Instead, they're incentivized to lend it out in the debt and credit markets, thereby increasing the supply of money in the economy. The thinking being that that would stimulate the economy as businesses and consumers consume cheap credit to invest while also boosting inflation.
post #9050 of 11195
@patrickBOOTH, swing from Cambodia over to Malaysia and get yourself a job at this fund: http://www.reuters.com/article/us-switzerland-malaysia-investigation-idUSKCN0V8069
post #9051 of 11195
Fuck I shouldn't have sold FB.

😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭

Edit: such a scumbag brain. Can't be happy for profits and bitching about "lost gains." Hate how my brain works this way. It's a miserable way of thinking.
Edited by GreenFrog - 2/1/16 at 7:07am
post #9052 of 11195
Quote:
Originally Posted by GreenFrog View Post

Fuck I shouldn't have sold FB.

😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭

Edit: such a scumbag brain. Can't be happy for profits and bitching about "lost gains." Hate how my brain works this way. It's a miserable way of thinking.

Day trading. It's for winners. icon_gu_b_slayer[1].gif

Sarcasm aside, no, I don't do it.
post #9053 of 11195
Awfully tempted to gamble on dat GOOG earnings

Edit: wow
post #9054 of 11195
Good thing I still own dat goog and googl.

Wonder if it is exit time?
post #9055 of 11195

Yes, sell. And then watch it go up another couple % points over the next couple of days.

post #9056 of 11195
Considering I am up >200% on my IRA position (at today's close), I am not sure how much a couple more points really matters.

My class A shares are up 207%, while class C are only up 201%...owned before the split, so didn't make a concious choice on which one to own.

If the after-hours numbers hold, I should be up 220%.

In my taxable account, I only own class A and would only be up 40%...and that's one of only 2 things that are currently green in my taxable account (not green for the year mind you...green for all time frown.gif)
post #9057 of 11195
Quote:
Originally Posted by otc View Post

..and that's one of only 2 things that are currently green in my taxable account
(not green for the year mind you...green for all time frown.gif)

No worries-- you just have to keep breathing until the retirement account starts to distribute.
post #9058 of 11195
Actually, I think my taxable account is slightly positive overall.

The gains calculator just doesn't really count dividends. So the shares may be worth less than when they were bought, but some of those shares were bought with dividends so the total account value is still higher.

Also, since I turned it on a few weeks ago, wisebanyan's tax loss harvesting claims it has already saved me 40 bucks in taxes owed next year.
post #9059 of 11195
So green today it's becoming scary.
post #9060 of 11195
Now that I think about it, any sort of tax loss harvesting on funds is going to be almost impossible for me right now...even wisebanyan's automated harvesting.

Main problem is that my 401k is making purchases every paycheck...so any substantially similar sale will get turned into a wash sale. Ditto for things like S&P 500 or REIT funds that I own in IRA/taxable accounts that reinvest dividends (though I could turn that off).

Wondering if it would be worth moving the 401k over to a target date fund. As I understand it, those are never going to get classified as "substantially similar" to any individual funds. Many of them have allocations close to what I am already doing, and while they may charge a slightly higher fee, I wonder if allowing for strategic tax loss harvesting on the taxable accounts would cancel that out.

edit: or I suppose I could make *new* 401k investments into target date funds, and then strategically swap them over to normal funds when I know I am not invalidating a large tax loss. Just seems like a lot of work and I am not sure it is worth the effort right now. Maybe in the future when my taxable portfolio is larger than my 401k+IRA.
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