iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,414 Blog Posts

Everything is Weird

French, Spanish, Italian and Belgium 10 yr yields are rising again today. Yet, the market reaction is “meh”, as traders go about their days as if nothing was wrong. Theoretically, a total collapse in Europe “should not” affect the US too greatly, if it weren’t for our fucking banks. Then again, we’ll get lit up by the irrefutable laws of 6 degrees of separation. If Europe collapses, so will demand for Chinese shit in Europe. Once China gets hit, so will everyone.

Despite what the war hawks in the GOP say about America, the 21st century belongs to China, until we fucking attack them and enslave their people in FOXCONN factories. Oh wait, we already do that. Nevermind.

The dollar is climbing, TLT is ripping, crack spreads are collapsing and Marc Cuban is talking shit about hackers (CHINESE BURRITOS)  who are publicly traded and how the stock market is for idiots. In many respects, Marc is correct. If you are reading this post, you probably are a big fan of stocks, as am I. The market is my passion. I suppose deep down I enjoy  the torture and the drama, like some sort of kitchen bitch. But don’t put all of your money in stocks. I have less than 50% of my liquid net worth in stocks. As a matter of fact, much to my tax attorneys chagrin, I do not contribute to my 401k or an IRA. The way I see it, I want my money liquid, just in case I need to take my shit and go. I do not like the idea of locking my money up, just to benefit from some stupid tax write-offs.

No thanks.

Out of all my positions today, GSVC , EXK and OMX look best.

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41 comments

  1. Yogi & Boo Boo

    Thanks Fly.

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  2. Bullish

    What? No IRA or 401k contributions? With all do respect, that is lunacy!

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    • The Fly

      I haven’t done so since 2007.

      I keep my money liquid.

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      • Jakegint

        That is why I eschew those goofy college plans and all “Roth” IRAs.

        do you really trust the gov’t that you’ll be able to keep that dough “tax free?”

        Screw that.

        ______

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        • The Fly

          529 plans? Ha. Biggest crock of shit.

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          • Dog

            What do you think about the prepaid 529’s?

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          • The Fly

            hate them all

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          • Dog

            I respect and appreciate different points of view. Especially yours. I understand you want your money liquid but there must be a more logical reason for avoiding the 529’s, ROTH’s and 401K’s. Is it that you think the gov may seize the funds? I’d love to hear your’s and Jake’s reasoning on this. It might be a good subject for a future blog post, unless you have already done so:-)

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          • Andy

            Can’t speak for The Fly, but I would bet he might agree with me when I say that for most intelligent, motivated people that if the time and energy spent “saving” money was applied to “making” money, they would be better off and happier.

            Not directly related to the retirement plans discussion – but sort of.

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          • brokecollegedad

            529 plans reflect as an asset to youre child therefore affecting their qualifications for scholarships and grants.not a good thing for them at all

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          • 500kMin

            529 plans held by parents or other non-beneficiary
            A 529 account owned by a parent for a dependent student is reported on the federal financial aid application (FAFSA) as a parental asset. Parental assets are assessed at a maximum 5.64% rate in determining the student’s Expected Family Contribution (EFC).

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        • Yogi & Boo Boo

          @Jake – Even if they do change the tax treatment of withdrawals from Roth’s in the future, they still allow tax free compounding now.

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      • 500kMin

        if your company matches 5%, why not at least put that amount in.

        Guaranteed 100% return, tax defered (even if you put it all in the money market account).

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    • Andy

      I tend to agree about keeping money liquid and carrying as little debt as possible. Sure, if your employer is matching your contribution you might as well take advantage of that. But I know first hand what it’s like to need cash, cash out some retirement and pay your top tax rate on all that money. And maybe a penalty… And have to wait for it. Sucks.

      While I am ranting about “investing”, I never have understood people getting giddy over a 3% annual dividend. In today’s market, that 3% is the difference of buying it at 10am and 3:30pm on the same day. Maybe I am missing something. Guess it works over time if you “dollar cost average in and hold forever…”

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  3. The Zombie

    The Fly is God

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    • Yogi & Boo Boo

      Yeah, that too Zombiw. BTW have you been watching your relatives on the Walking Dead?

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      • Yogi & Boo Boo

        Sorry Zombie, I need to replace either my keyboard or my fingers.

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        • The Zombie

          HA. Yogi, I have yet to see it but I think I’m gonna have to Netflix that series this week as Wood has also recommended it.

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  4. Yogi & Boo Boo

    France 10 year continues higher minute by minute and FR-GER spreads still blowing out. I can’t see how’s there’s not more of a reaction… Go figure.

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  5. drummerboy

    exk down a smidge may add in afternoon

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  6. Yabollox

    So Cuban is one of those asshole capitalists hoarding cash and not investing in jobs in America. The OWS crowd protests against such people.

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  7. wilmer

    lol- wtf? I placed an order through TD and confirmed it. After it went through my order was not executed and there is no record I placed it? WTF?

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  8. flyaway18

    Agreud

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  9. MetalLeg

    I too stopped contributing to my 401k a few years ago. I withdrew all after-tax funds, cleared my IRA, and my kids’ 529. I bought gold and silver with the proceeds.

    I am missing the company match but in the end, I will do better than those who have trapped themselves in what will eventually be a worthless currency, or a currency that is worth less.

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  10. Yabollox

    It makes sense to fill up your IRAs to the extent there are tax savings, and company plans to take full advantage of company matching $. Then get it the hell out of there when you can without penalty. Diversify your holdings and trade outside, or inside the IRA self directed. It’s still your money, your portfolio. It just saves you some tax $ and accumulates on the side, so to speak.

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  11. Flicker

    Cuban is the luckiest fucker of the face of the earth. When Yahoo bought him out in 1999 he was worth about $3million. Inside of 90 days his account at Goldman was worth close to $4 billion. As we all know, Yahoo wrote off their entire investment in Broadcast.com 5 years later.

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  12. checklist

    I don’t know a hwole lot about forex trading, but whats the fate of the Euro?

    Its likely to remain very strong becuase its in such short supply (probably a negative total of available Euros) absent some ability to create new ones (which is currently lacking). Demand would come from debtors seeking euros to pay debts.

    But its also inevitably going to break up, absent some currency creation. So could it remain strong until suddenly imploding?

    The market is assuming that the Europeans will eventually monetize some debt.

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  13. hattery

    If company matches 401k, it’s wise to figure out how many years before you see that money. For example, someone retiring in a year gets a 100% match in one year or a 100% compounded annual return rate. However, Someone who is only 20 and retires at 65 gets a little over 1.5% compounded annual return. Considering the risks of the government delaying withdrawal/extending retirement age, increasing early withdrawl fees, increasing taxes on it or whatever can happen, for a 20 year old, I don’t think it makes a ton of sense, especially since you are limited in what you can invest in. For a 60 year old it certainly makes sense.

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    • Yabollox

      Also depends on what portion of a person’s overall assets it amounts to. If it’s all your investment money I would not put all my eggs in one basket. If it’s a small percentage you can diversify around it. I would try to capture the company $ and roll it out of company stock as soon as possible. That’s actually how my initial nut got started.

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