For those of you holding sizable cash positions, have you considered parking in any NAV or below NAV SPACs as a low risk high reward alternative? There’s a few that I have my eye on, wondering if anyone has gone this route and taken advantage of the arbitrage.
OT: Stock and Investment Talk
- Thread starter RU-05
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Timing the market is impossible so I totally agree with all of the posts about staying long. 2008 scared the crap out of me. But then I realized that the Gov’t will never let the stock market and financial system fail. Whether it’s Obama, Trump, Biden, their minions, billionaires, Unions, pensions funds, etc. it doesn’t matter because there are trillions of reasons why to ignore corrections and simply make sure you have some cash on hand to buy at deep discounts. Powell’s retirement fund, his pension, his family’s investments - all hinge on market performance. When COVID ranked the market I didn’t blink an eye and just started buying the whole way down. Biggest regret is I was too slow to deploy my cash reserves. But, then take some profits at the right time and rebuild the reserves for the next opportunity. It will come.
You are entitled to your opinion. Funny how Ford came out with the EV push after the elections.
You know that SALT cap is Just a different form of AMT?
I’m not sure I’ve nailed my cash reserve strategy, but I keep it in a Gov’t MM fund only because I get a return (albeit peanuts) and can deploy it at anytime. If sell something and have to let the trade settle you may miss opportunities.
All great stuff and thanks for the inputs. I'm typically fairly even keeled and don't over-react to events. Just trying to wrap my head around some rumblings from few people who, to their credit, gave me some good advice pre-2008 well before the bottom fell out and as a result who made out quite well. Me not so much last time but have recovered in the intervening years as have many people.
Right now my company pays for Edelman so advice is free and I never really selected the option to turn over management of the portfolio to them which has always been an option. Their tools, however, are actually pretty useful and do a rather large Monte Carlo analysis based on parameters which I provide and an overall picture of my current net worth and assets. It provides a nice range of total portfolio projections with given probabilities. On the low end my 5% is still showing as providing 65% of current income, on the top end 5% it's projecting 110% of current income. Because I'm currently paying for two kids in college I'm effectively living less than 65% anyway and my standard of living is pretty good. They are done this year so I will be flush with an extra $70K for another 4 years before hitting the eject button. Will likely use that and proceeds from current home which we 100% own to move closer to the shore. I see myself working part time at a bait and tackle shop after I bail on my current career.
The company is changing who manages the accounts to Fidelity next year which is also currently where my company stock outside of my 401K is kept. I do think I need to dial back a bit on some of the riskier stuff like small caps, etc. The bond fund options for the current management provider have been complete crap (-2% YTD). I'm hoping the new options provided by Fidelity will be an improvement, or will at least a break even. I'll periodically check back for any follow ups from the board. Thanks again.
Right now my company pays for Edelman so advice is free and I never really selected the option to turn over management of the portfolio to them which has always been an option. Their tools, however, are actually pretty useful and do a rather large Monte Carlo analysis based on parameters which I provide and an overall picture of my current net worth and assets. It provides a nice range of total portfolio projections with given probabilities. On the low end my 5% is still showing as providing 65% of current income, on the top end 5% it's projecting 110% of current income. Because I'm currently paying for two kids in college I'm effectively living less than 65% anyway and my standard of living is pretty good. They are done this year so I will be flush with an extra $70K for another 4 years before hitting the eject button. Will likely use that and proceeds from current home which we 100% own to move closer to the shore. I see myself working part time at a bait and tackle shop after I bail on my current career.
The company is changing who manages the accounts to Fidelity next year which is also currently where my company stock outside of my 401K is kept. I do think I need to dial back a bit on some of the riskier stuff like small caps, etc. The bond fund options for the current management provider have been complete crap (-2% YTD). I'm hoping the new options provided by Fidelity will be an improvement, or will at least a break even. I'll periodically check back for any follow ups from the board. Thanks again.
While I would never consider myself bearish, recent events had me considering shifting some positions earlier today. Perhaps taking some small positions in more defensive alternatives as a REIT, TIPs fund, or commodities ETF. Although, my limited experience with commodities ETFs always never seemed to pan out as a decent hedge. Any suggestions welcomed.
Maybe start here. I might screen for the funds with highest AUM (assets under management).
Commodities ETFs
32 ETFs are placed in the Commodities Category. Click to see Returns, Expenses, Dividends, Holdings, Taxes, Technicals and more.
Anyone looking to diversify while not having the temptstion to drink their investment?
We were getting CRUSHED by the AMT prior to the 2017 tax reform. Thank goodness! Great piece of legislation. :)
The SALT cap sucks, but the 2017 tax reforms were still a big net positive due to lower rates and AMT adjustments.
Well aware of that. But you don't have to bring additional tax from the 6251 onto your 1040 so it's not AMT.
Funny how nobody in the media talks about the effect of lower rates.
Financial Advisor Fee Trends Still Show No Fee Compression
Through our research, we found little evidence that the fee compression evident with financial services products has also applied to financial planning advice.
www.kitces.com
Which religion: Here is an article that discussed various fee structures. Personally, I wouldn’t pay for a financial advisor but that’s just my opinion.
Yes, low risk. Actually, no risk.
“Take Spartacus Acquisition (TMTS), a technology, media, and telecom-focused SPAC that raised $200 million in an IPO last October and a deadline 18 months later on April 20, 2022. The SPAC’s stock traded around $9.90 on Monday, versus a trust value per share of $10.15, according to its IPO prospectus.
Investors can effectively buy $10.15 worth of cash for $9.90, and still have the potential upside of a well-received deal if Spartacus’ sponsors deliver. In the case of a dud, investors can choose to redeem and get the $10.15 trust value plus whatever interest is earned meanwhile. That’s a guaranteed minimum yield of 2.5% to be received between now and the SPAC’s deadline about a year from now. Compare that to the 0.06% yield on the U.S. 1 Year Treasury bill.”
A Risk-Free Way to Profit From SPACs
After a recent correction in the market for special-purpose acquisition companies, numerous arbitrage opportunities now exist.
www.google.com
+1
Even in NJ, 60% of households received a tax cut, 30% essential broken even, and 10% had their federal taxes go up. Not bad, but sadly, everyone seemed to whine like they were part of that 10%. LOL!
Billionaire investor David Tepper warns against going all in on stocks, slams bonds, and hints crypto may be a bubble in a new interview. Here are the 8 best quotes.
The Appaloosa Management boss sees crypto as a store of value like gold, and advises investors to hold stocks for the long term.
markets.businessinsider.com
I don’t own bonds but I like this line:
Billionaire investor David Tepper warns against going all in on stocks, slams bonds, and hints crypto may be a bubble in a new interview. Here are the 8 best quotes.
The Appaloosa Management boss sees crypto as a store of value like gold, and advises investors to hold stocks for the long term.
"It can stay there for a couple years, and you can get excess returns. But if you look at the chart, at some point you're gonna get your derrière handed to you. You can pick up nickels in front of that steamroller for the next year or two.”
Model 3 pricing up on the Hertz website.
$105/day
Comparable vehicles:
Ford Focus $85
Mazda 3 $90
VW Jetta $93
$105/day
Comparable vehicles:
Ford Focus $85
Mazda 3 $90
VW Jetta $93
Same advice for the past 5 years and counting from Tepper. Would have lost tons and tons of money if you listened to him.Billionaire investor David Tepper warns against going all in on stocks, slams bonds, and hints crypto may be a bubble in a new interview. Here are the 8 best quotes.
The Appaloosa Management boss sees crypto as a store of value like gold, and advises investors to hold stocks for the long term.
See sig below.....
Yes, low risk. Actually, no risk.
“Take Spartacus Acquisition (TMTS), a technology, media, and telecom-focused SPAC that raised $200 million in an IPO last October and a deadline 18 months later on April 20, 2022. The SPAC’s stock traded around $9.90 on Monday, versus a trust value per share of $10.15, according to its IPO prospectus.
Investors can effectively buy $10.15 worth of cash for $9.90, and still have the potential upside of a well-received deal if Spartacus’ sponsors deliver. In the case of a dud, investors can choose to redeem and get the $10.15 trust value plus whatever interest is earned meanwhile. That’s a guaranteed minimum yield of 2.5% to be received between now and the SPAC’s deadline about a year from now. Compare that to the 0.06% yield on the U.S. 1 Year Treasury bill.”
A Risk-Free Way to Profit From SPACs
After a recent correction in the market for special-purpose acquisition companies, numerous arbitrage opportunities now exist.www.google.com
Are you sure if you buy in the secondary market you can put back the shares to the company? I thought that was only for investors that put their money in pre ipo?
I've bought SPACs below $10. It's not a low risk/high reward strategy, as the first one I did this with is now selling at $3.35, and they basically took the seed money and rolled a joint with it. But your results may vary.
I'm gonna shop for orphan SPACs around Christmas time, when everyone else is tax loss selling.
And most of the 10% were high income taxpayers, millionaires and billionaires so to speak, who got clipped by the SALT limitation and miscellaneous itemized deduction elimination. Wait! I thought they all got tax cuts.
But you chose to stick with it post merger I assume? At the time of merger you could have cashed out and not been down?
That just wrong. Do the math and you will see. Big tax cut for guys making 7 figures. AMT never applied to that group.
HOOD getting shredded. Not a fan of Vlad. What goes around comes around.
Actually you're wrong because if doesn't just apply to AMT. We're talking NJ here, so unlike Texas or Florida we're talking major SALT and miscellaneous itemized deduction losses. Now if you're talking about the person who got $20 million dollars of restricted stock released in that year and reported on a W-2 you have a point. If you're talking about a $1.5 million W-2 taxpayer not so. And if you're talking about the bete noir of Warren/Sanders, the taxpayer who's mainly reporting long term capital gains it's definitely not the case. For them, same tax rate and application of the SALT limitation.
Not understanding you. If you live in FL or TX, you are not paying AMT. The tax cut is just that. Everyone got a break and most went to the people that paid the most unless you lived In a higher tax state. A small unique subset had increases.
The AMT was already acting as a quasi-SALT cap. A lot of our SALT deductions didn't count for anything back then. We would put in our property tax info into TurboTax and our tax bill didn't budge. Why? We were living in AMT-ville.
Yeah the AMT sucked and I thought that tax adjustment worked out so much better but in such a high tax state it would be nice to not limit SALT
Ok, we are in agreement. Thought you were saying something else.
+1
But with that said, surely I would love the SALT cap removed AND the AMT reforms to stay in place.
#havingcakeandeatingittoo
A recent example…Yes, low risk. Actually, no risk.
“Take Spartacus Acquisition (TMTS), a technology, media, and telecom-focused SPAC that raised $200 million in an IPO last October and a deadline 18 months later on April 20, 2022. The SPAC’s stock traded around $9.90 on Monday, versus a trust value per share of $10.15, according to its IPO prospectus.
Investors can effectively buy $10.15 worth of cash for $9.90, and still have the potential upside of a well-received deal if Spartacus’ sponsors deliver. In the case of a dud, investors can choose to redeem and get the $10.15 trust value plus whatever interest is earned meanwhile. That’s a guaranteed minimum yield of 2.5% to be received between now and the SPAC’s deadline about a year from now. Compare that to the 0.06% yield on the U.S. 1 Year Treasury bill.”
A Risk-Free Way to Profit From SPACs
After a recent correction in the market for special-purpose acquisition companies, numerous arbitrage opportunities now exist.www.google.com
Keep dreaming. W-2 people never get a break.+1
But with that said, surely I would love the SALT cap removed AND the AMT reforms to stay in place.
#havingcakeandeatingittoo
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