Talking stocks, trading, and investing in general

[Piobaire]

What would you do if you're sitting on half a million cash, don't need to spend it right away, but may become cash flow outlay in 3-5 years?

At this very moment with those stipulations? High yield savings until November.

 

[venividivicibj]

What would you do if you're sitting on half a million cash, don't need to spend it right away, but may become cash flow outlay in 3-5 years?

USFR - ETF that gets short term treasury yield - currently getting ~5%

 

[gettoasty]

Thanks for entertaining my question. This hypothetical money is in Vanguard money market earning a little over 5%. Just having some FOMO. The AI rally + interest rate cuts at year end makes me think getting in now wouldn’t be a bad idea ie buying bits of VOO.

Anyone into cybersecurity? CIBR

Also, just listened to this 😂
You've been given free access to this article from The Economist as a gift. You can open the link five times within seven days. After that it will expire.

Should you put all your savings into stocks?

https://econ.st/49qaPmD

Cheers

 

[otc]

All stock all the time

 

[Omega Male]

Lot to unpack here.

-- Dude eavesdrops on his wife's WFH biz calls and learns of pending merger.

-- Uses info to insider trade and make almost $2M.

-- Confesses to wife, says he did it for them, so she won't have to work so hard.

-- She tells her employer, who tells the SEC. Employer fires her, despite no evidence she was aware of the scheme.

-- He agrees to disgorge all the proceeds and is facing up to 5 years in jail.

-- She's divorcing him.

BP employee’s husband pleads guilty to insider trading after overhearing deal calls

Authorities say man took advantage of working from home to make $1.76mn from shares in company being taken over by oil major

www.ft.com

 

[jbarwick]

There is a Company, Innovator Capital Management that has these Buffer and Defined Outcome ETFs where you limit the downside but the trade-off is capping your upside. Could be worth checking into.

I know OM follows the Ritzholtz guys as well and they have had the CEO multiple times talking about their products but given I don't have money needed in that timeframe, I am either HYSA or the market.

 

[double00]

Lot to unpack here.

-- Dude eavesdrops on his wife's WFH biz calls and learns of pending merger.

-- Uses info to insider trade and make almost $2M.

-- Confesses to wife, says he did it for them, so she won't have to work so hard.

-- She tells her employer, who tells the SEC. Employer fires her, despite no evidence she was aware of the scheme.

-- He agrees to disgorge all the proceeds and is facing up to 5 years in jail.

-- She's divorcing him.

BP employee’s husband pleads guilty to insider trading after overhearing deal calls

Authorities say man took advantage of working from home to make $1.76mn from shares in company being taken over by oil major

www.ft.com

is it really that much to unpack ? seems like the takeaway is wfh poses some risk to sensitive info .

sure maybe the wife wasn't in on it but i'd argue it's still her poor judgment to have her idiot ex-husband around a sensitive work environment

 

[Omega Male]

is it really that much to unpack ? seems like the takeaway is wfh poses some risk to sensitive info .

sure maybe the wife wasn't in on it but i'd argue it's still her poor judgment to have her idiot ex-husband around a sensitive work environment

You have no poetry in your soul.

 

[HRoi]

I kinda wonder how most mergers don’t end up leaking in some way, what with the number of people who are involved

 

[brokencycle]

I kinda wonder how most mergers don’t end up leaking in some way, what with the number of people who are involved

It sure feels like they do all the time. I was part of a large tech company that did a major acquisition and there were rumors a few weeks ahead of it. The CEO was even asked at an all hands about the acquisition before it was public to which he obviously responded with a canned answer "We have no plans to make an acquisition like that, but if we did, I wouldn't be able to talk about it" and then there were rumors on the CNBC type shows a few days prior to the announcement.

 

[Kaplan]

Anyone into cybersecurity? CIBR

I have a bit in WisdomTree's Cybersecurity ETF, though I bought in early '22, so it's about +19% in about 2 years - not particularly great (compared to some I got in VanEck's Semiconductor ETF around the same time, that's about +69% now). If I can find the cash for it, I might get some CrowdStrike.

Unrelated, buying Nvidia 4 times during '21 is starting to pan out. So is averaging down on PLTR in the same period.

 

[venividivicibj]

There is a Company, Innovator Capital Management that has these Buffer and Defined Outcome ETFs where you limit the downside but the trade-off is capping your upside. Could be worth checking into.

I know OM follows the Ritzholtz guys as well and they have had the CEO multiple times talking about their products but given I don't have money needed in that timeframe, I am either HYSA or the market.

I wouldn't do it - it seems like a great deal (capping your losses), but you're always giving away a ton of upside. Sure, you'll have some down years, but given that the stock market averages 7-10%/year (depending on what data points you're looking at), it's not worth the 'cost'.

Only way I can see it working is if you're newly retired (or about the retire), and can't afford an immediate 10-20% drawdown

 

[otc]

I kinda wonder how most mergers don’t end up leaking in some way, what with the number of people who are involved

I’m sorry for holding out on you guys.

But I can tell you that Tarragon is planning to make an acquisition of either Cardamom or Anise.

 

[jbarwick]

What would you do if you're sitting on half a million cash, don't need to spend it right away, but may become cash flow outlay in 3-5 years?

I am in a situation similar to this but not as much and the funds are currently invested in the Vanguard equivalent of QQQ and sitting on a sizeable gain. If I sell and transition to treasuries, we would lose a year of interest to taxes. Any ideas? Thinking just pay the damned taxes is the option here but an open to other suggestions.

 

[gettoasty]

@jbarwick Tax-loss harvesting?
Donations?
Munis? (as an alternative to taxable interest on the treasuries, I think I was looking into some tax-free cash alternatives at Vanguard last month)

Pay the taxes sure, but don't pay more than you need I suppose. I think the below may be applicable. (I'm assuming you're already maxing out all your other income-tax related savings.)

A wealthy investor at the 37% tax bracket is considering a corporate bond yielding 7% or a municipal bond yielding 5%.

On the surface, the corporate bond seems better. However, the corporate bond is fully taxable and the municipal bond is tax-free (assuming the investor is a resident). To find the after-tax return of the corporate bond, you could do the tax-free equivalent yield formula:

TFEY=CY x (100% -TB)

TFEY=7% x (100% -37%)

TFEY=7% x 63%

TFEY=4.4%

Your guide:

TFEY=tax-free equivalent yield

CY=corporate yield

TB=tax bracket