Posted on 02/23/2013 4:42:22 PM PST by blam
It sure doesn't mean you expect a 30% gain either.
Uncle Ben must have told all his banking Wall St. buddies that he was going to pull the plug on the 90 billion dollars a month stock market float since they have drawn enough retail suckers back into the market by pumping it up to the 14000 level while having the business media promote rainbows and unicorns 24/7.
The insiders dump at the peak and the retail suckers get cleaned out again. The market is nothing more than an insiders fleecing operation totally ran by the FED while the captured SEC regulators surf porn and yawn.
YES!
Get out, get out, get out: now is the time to dump your stocks and bonds. If you cannot roll around naked on yoour hard assets (no joke intended) then you do not have assets that you can be assured will survive the coming economic collapse.
We peons do not, but those with significant sums to invest can negotiate for much better rates than the take-it-or-leave-it inflation rape offered to the little guy. Really the only way to fight this is for millions of us to yank all our money out of the banks and force them to offer better rates.
”Why are some of the biggest names in the corporate world unloading stock like there is no tomorrow, and why are some of the most prominent investors on Wall Street loudly warning about the possibility of a market crash.”
Because stocks once again are getting ready for a big correction. It won’t happen till the summer of 2014 so Obama can blame the Republilcans for the impending crash.
Look for a stock that has gone up and down and ride it down. Then ride it back up. I am doing EMC for the 5th time. 30’s down to the teens back up the the 30’s.
Maybe because the Fed is propping up equities with their constant interventions ?
Any one who thinks stock prices are the result of natural supply and demand factors are suckers.
Leni
They see some kind of gun confiscation scenario unfolding, and that will crash every market there is.
Galt’s Gulch intersecting Zombies on parade.
Understand the question. If my stocks are in so-called peril where would I move risk and why?
Bull market possible if the Fed does not stop QE. Some of the Fed members are concern about the excess QE and its affect on the economy since QE is not producing any noticeable benefits to economy and employment. I think the Fed knows that, but is grappling with how to ease out of QE without crashing the over brought stock market and crashing the bond market as interest rates must go out as Fed withdraws QE financing of US budgetary shortfalls. I think the insiders know something that everyone else does not. The 1 percent will be out of stocks while the MSM that serves them will espouse stocks are safe and Joe public needs to buy tons of them for his portfolio.
Where do you get interest rates of 5% on savings? Bernanke and his WS pals and his puppets in Congress and WH are forcing those Americans that have lived responsibly, without debt, to pay the price for the irresponsibility and corruption of the greed of the NY bankster thieves and others that thrive on the desire to enhance usury.
Sorry about the double post. Didn’t think the first went up.
Note that the savings rate can be modified. Also note that the calculator does not take into account inflation.
Because the Fed is pumping $85 billion a month to too-big-to-fail banks (buying junk CMOs off their books at par) and no small part of that money goes into the stock market.
Get a job with one of the big trading houses and front-run.
NonLinear is of course correct. The anticipated decline is 30%+ of the appreciation. I should have been more specific. However, for the vast majority of corporate insiders, their stock ownership, and gain, comes via the exercise of stock options, and in that case, their cost basis is in reality, zero. It is also important to recognized that non-qualified stock options (NQSOs) which generally given to lower compensated employees, automatically trigger the gain, and tax, when exercised, whereas with ISOs (Incentive stock options) generally given to the higher paid executives; the tax can be avoided merely by holding onto the stock. The fact that these insiders are the ones doing the selling is thus most telling.
FINF is also correct, except his comments ignore two key points:
1.Once I sell, and pay the taxes, I have to "earn that back" somehow. Thus, simply put, the assumption is that if I have a $1000 gain, and pay $300 in taxes, leaving me $700, to invest elsewhere, or put under my mattress, I will end up with MORE $$ in the near future than if I leave the $1000 intact and allow it to hopefully "grow." That's the scary part of this scenario.
2. Over time, careful financial and tax planning can possibly allow one to mitigate somewhat the tax impact of a sale ( assuming of course that the underlying value remains at least the same) A rapid sale now negates that possibility.
I should also [point out that my 30% tax cut is in reality a quite conservative assumption. For many of these highly compensated individuals, some of the gains will no doubt be treated as ordinary income, and since many live in high tax blue states..NY, NJ, CT, MASS, Cal..in reality the tax bite may well EXCEED 40%+.
Which only shows again, how scary the financial markets are now...
Regards...
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