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The Joe Biden Tax PlanJoe Biden Tax Plan Topics: ☐ increase capital gains tax ☐ elimination of step-up basis ☐ elimination of the 1031 exchange As the 2020 presidential election comes to an end, many are wondering what Joe Bidens' Tax Plan could do to the asset markets; By looking into his tax plan, we may have a couple of hints. As many know, democratic nominee, Joe Biden plans to raise taxes on corporations along with taxes on individuals who make more than 400k per year. This will be done by raising income, payroll, and most importantly, capital gains taxes . Any time someone sells an asset like stocks, bitcoin, or real estate for more than what they purchased it for, it creates a taxable event. Taxable events like these are what make up the capital gains tax. As an example, let's say you purchased 1 Bitcoin for 4k earlier this year. With the rapid increase in Bitcoin's price, you decided to take profit at 14k, leaving $10,000 of taxable income. The percentage of that which is owed to the government is dependent on the capital gains tax rate. Biden plans to raise this capital gains from 20% to 40% for those making more than $1 million per year. Though most of us do not make more than $1 million per year, a 20% tax increase will lessen the incentive for big players to be in the market. Thus having a negative effect on asset prices all around. Another factor to consider is that Biden plans to eliminate step-up basis. Currently, when an asset is left to an heir, the basis of that property is increased to its current fair market value. If that heir then chooses to liquidate the asset, it is only taxed on the difference in price since they gained possession. By eliminating the step-up basis, when the heir goes to sell, they will be taxed from their grantees' purchase price. This could potentially reduce the number of people holding assets long-term. Lastly, Biden wishes to eliminate the 1031 ' like kind ' exchange. For those of you familiar with real estate, many people have used the 1031 exchange to move liquidated funds from one investment property to another tax-free within a timed threshold. By eliminating this, there will be much incentive for property investors to keep re-investing their money. Likely having a negative effect on housing prices. By reducing incentives to keep investors money in the market, it seems that the Joe Biden Tax plan could have a negative effect on markets all around. Looking at Bitcoin technicals, it seems it is ready for some bearish fundamentals. The BTC price is grinding against the top of the year-long channel which I do not expect to break without a fight. Looking forward to seeing what effect the presidential election has on immediate pricing.
COINBASE:BTCUSD
by oh92
22
REDFIN Bottomed out | Full Send Into Earnings $RDFN$RDFN shines as mainstream housing outlet; Redfin has outperformed the AMEX:SPY . Trust the TA ~ The stock currently sits above what has proven to be strong support @ $43.9 Watching the orange trend line as support as well, it holds strong on the weekly timeframe. Looking to bounce off this. Possible long on hold above @ $43.9 Upside targets: $48, $50, $52.69 Possible Short Entry: $42.3 Caution needed in this stock as we have a possible Double Top pattern forming. Follow levels accordingly DotcomJack | MJ of Stonks
NASDAQ:RDFNLong
by DotcomJack
Real Estate crash coming?It has been a long time since our last ETFs discussion. Today I have something to share. IYR (US Real Estate) is getting ready for a new decline. COVID is a real disaster for an offline business. Thousands of restaurants and other retail businesses have already closed and this number will be increasing. It is a dangerous sign. With that in mind, we can experience the start of a new decline in the USA commercial real estate in the coming 2 – 3 months. Once the destruction of earning levels reflects into the economic cycles, banks will tighten lending opportunities. That means the number of capable buyers will decrease at a time when home inventories may begin to skyrocket. Does it remind you of something? – It is very similar to what happened before the 2008-09 credit crisis. Pay attention to the Case-Shiller data. It is showing home price levels had already exceeded 2006-07 levels. So, what do we have? – Extremely high price levels, combined with the uncertainty of future earnings, unemployment, a big number of closed retail businesses, falling consumer confidence, layoffs, etc. What result can we expect? Real Estate ETFs can decline another 30 – 50%. So, if you deal with USA commercial real estate, it makes perfect sense to hedge your risks. And active traders have another pending opportunity to get substantial gains.
AMEX:IYRShort
by UnknownUnicorn1156963
1
Lowe's climb can continue on strong home-building dataIntroduction Strong upward momentum for Lowe's has been slowing lately along with the rest of the market. However, I think the upward march for this stock can continue for both fundamental and technical reasons. Fundamentals Like nearly every other stock in this market, Lowe's is trading at a higher multiple than the stock has traditionally traded at. Unlike nearly every other stock in the market, the Lowe's multiple is actually justified by the prospect of future growth. Fidelity and Zack's both calculate the PEG ratio on Lowe's to be close to 1, which is fair value. Most stocks are trading at PEG ratios between 2 and 8 right now, making Lowe's one of the most attractively priced stocks I've seen lately. Lowe's boasts strong ratings from analysts, including a 9.2/10 Equity Starmine Summary Score, a 74/100 valuation score from S&P Global, and a "Leader" ranking for corporate governance from MSCI. Options traders are more bullish than bearish on the stock for both the short and long term. Perhaps more importantly, Lowe's is sitting in an extremely strong sector. Today, mortgage applications data beat by a wide margin. Business spending data shows home building supply as one of the only sectors in strong expansion, with investment up 20% YoY. Homebuilder Taylor Morrison posted 24% sales growth with a large order backlog. Consumers have spent the pandemic doing home renovations, and as a result, economic data for the sector have consistently surprised to the upside. In the medium term, the big risk for this sector is that mortgage forbearance will expire, houses will go into foreclosure, and real estate prices will collapse. That's currently scheduled to happen on August 31, but there's been talk in Congress of extending forbearance until sometime next year. Currently more than 8.5% of mortgages are in forbearance, so this is a potential residential real estate apocalypse if Congress doesn't pass an extension. If you take this trade, keep a close eye on what happens with that expiration date. Technicals Note the hidden divergence I highlighted on the chart, with the MACD making a lower low as the price made a higher low. However, it's also important to note that Lowe's today has dipped below its 3-month trend line, albeit not with any conviction or volume. I've taken a small nibble here to satisfy my FOMO, and set an alert to buy more near the volume support at $130.30. I may look at buying a call option for the end of August, since Lowe's reports earnings on August 18.
NYSE:LOWLong
by ChristopherCarrollSmith
6
IVR was a top gainer,rising +87.26%. Expect Uptrend continuationTickeron AI shows that Invesco Mortgage Capital (IVR, $4.18) was one of the top quarterly gainers, jumping +87.26% to $4.18 per share. Tickeron AI analyzed 232 stocks in the Real Estate Investment Trusts Industry over the last three months and discovered that 212 of them (91.37%) charted an Uptrend while 20 of them (8.63%) trended down. Tickeron A.I.dvisor found 93 similar cases when IVR's price jumped over 15% within three months. In 77 out of those 93 cases, IVR's price went up during the following month. Based on these historical data, Tickeron A.I. thinks the odds of an Uptrend continuation for IVR are 83%.
NYSE:IVRLong
by AlTorress
HGV was a top gainer, rising +40.12%.Expect Uptrend continuationHilton Grand Vacations (HGV, $21.41) was one of top quarterly gainers, jumping +40.12% to $21.41 per share. Tickeron A.I.dvisor analyzed 50 stocks in the Real Estate Development Industry over the last three months, and discovered that 42 of them (84.62%) charted an Uptrend while 8 of them (15.38%) trended down. Tickeron A.I.dvisor found 133 similar cases when HGV's price jumped over 15% within three months. In 88 out of those 133 cases, HGV's price went up during the following month. Based on these historical data, Tickeron A.I. thinks the odds of an Uptrend continuation for HGV are 66%.
NYSE:HGVLong
by AlTorress
Mortgage choice(MOC:ASX) LongMortage choice Entry - 0.735 Exit- 0.925 Government stimulus favouring the property market in Australia. Overall optimistic sentiment due to better crisis control. RSI in mid-range but relatively overbought Classic Dow theory: Trendline support Risks 1. Expecting sideways movement next week and a breakout either way--> Tight stop loss 2. Retesting Accumulation zone @0.675 and 50MA 3. Bad news over the weekend (Unlikely) 4. Retailer panic selling(unlikely)
M
by ashainp
High Net Worth Strategies - What is High Net Worth Investing?What is High Net Worth Investing? In order to understand what high net worth investing is, you need to understand what a high net worth individual (HNWI) is. A high net worth individual, as the name suggests, is a wealthy individual with at least $1 million in liquid financial assets. In the financial industry, the high net worth status is based on how a bank wishes to classify its clients. There are two characteristics that classify you as a high net worth individual: Having considerable liquid assets. Having many investable assets. As wealth accumulation increased and more and more people have become HNWI, a new class of wealthy people has been created, namely the ultra-high net worth individuals. An ultra-high net worth individual (UHNWI) is someone with at least $30 million in liquid assets. Now that you understand what it means to be an HNWI or UHNWI, let’s learn some high net worth investing strategies used by HNWI. How Do High Net Worth Investors Invest? Imagine if you could use the same investment principles as the high net worth individuals. The high net worth investors have a large amount of capital available for investing. So, how do high net worth families invest their capital? The traditional asset allocation model for high net investors is 60/40: 60% equities 40% Fixed Income (bonds) This asset allocation model provides a diversified and more balanced source of income. While it is a rule of thumb, it is still very useful. Equities will pay investors dividends, while bonds will pay investor interest. This can be considered a form of passive investing. These types of investing strategies for the high net worth investor will also benefit from stock price appreciation. At the same time, bonds offer stability and income predictability. The traditional asset allocation model of 60/40 served investors very well in the 80s and 90s, during a time when interest rates were much higher. Today, bond yields are at the all-time record low, so the traditional asset allocation model won’t work that well in the current environment. So, it’s necessary to adopt different high net worth strategies. And, that’s exactly what we’re going to discuss below: Investing Strategies for High Net Worth Investor. The high net worth investors are the type of people who know what to do if someone gives them $1 million. Ask yourself this question: If you were to inherit today $1 million, would you spend the money? Or, would you invest the $1 million? If you’re not going to spend the money, then where should you invest $1 million right now? Well, the first step is to search for the best brokers for fixed income trading for high net worth and start from there. You should also diversify your investments and seek opportunities that have enhanced return potential and favorable tax treatment. Currently, many traders are realizing the old asset allocation model is changing. Instead of using the broken 60/40 asset allocation model, traders are becoming a bit more creative and are currently experimenting with new approaches. With the new approach, the high net worth individuals are able to diversify their investment beyond the standard stocks and bond model. Here is an investing strategy for the high net worth investor that includes attractive alternatives. See below: High Net worth Strategies #1: Asset Allocation Strategies Asset allocation is the process of deciding how much of each asset class (equities, bonds, real estate and cash) you should hold in your portfolio. There is no optimal asset allocation model as it all falls back on the money managers’ ability to seize attractive risk-adjusted return opportunities. For example, a typical high net worth asset allocation model looks something like this: 50% equities 10% infrastructure 10% private equity 10% real estate 10% hedge funds 10% fixed income The time horizon of this type of asset allocation model is much bigger. This type of investment is typically held for years. Nowadays, the Capital Asset Pricing Model (CAPM) is widely used to quantify the correlation between risk and the expected return. As the Harvard Business Review explains, CAPM sees risk and return as being decided by a portfolio exposure to market beta. Check out HERE what is Beta in trading. By combining the US stocks and global stocks into a portfolio, this will improve the risk and return relative to each of the stock selection. Compared to stocks, bonds are less risky, but they have lower expected returns. However, most stock model portfolios work well if they include growth stocks, which bring us to the next investing strategies for the high net worth investor. High Net worth Strategies #2: Growth Stocks Buying and holding growth stocks is a form of passive investing favored by the high net worth individuals. For example, if an investor has invested in Amazon stock back in 2015, the investor would have increased the investment by more than 700% by mid-2020. Growth stocks may or may not offer dividends (the certainly offer fewer dividends than blue-chip stocks), but they remain attractive because they produce returns through share price appreciation. Growth stocks also come with tax advantages because the investor is not obligated to pay taxes while holding the stock. Additionally, if you hold the stock for more than one year, your gains are taxed as long-term capital gains. The long-term capital gains are taxed at a lower rate than the short-term capital gains. We’re going to outline additional strategies for establishing asset allocation. See below: More Investing Strategies for High Net worth Investor. If you want to achieve to optimize asset allocation and minimize risk, you need to look into the different approaches that high net worth individuals use. We’re going to summarize for you five of the most common asset allocation strategies used by HNWI: 1 - Strategic asset allocation adheres to a proportional combination of assets based on expected rates of return. For example, if stocks historically returned 15% per year and bonds have returned only 5%, you would put more weight on stocks. 2 - Constant-weighing asset allocation strategy – with this approach you constantly adjust your portfolio. For example, if stocks would drop in value, you would buy more at a cheaper price. 3 - Tactical asset allocation – helps HNWI to take advantage of exceptional short-term investment opportunities. This is a type of active trading strategy. 4 - Dynamic asset allocation – this is another type of active trading strategy that helps you adjust your portfolio as markets rise and fall. For example, if the stock market is showing weakness or the economy is entering a recession, you sell stocks in anticipation of a drop in the stock price. 5 - Insured asset allocation – this approach is more suitable for the risk-averse investor because it seeks to protect the portfolio value by not allowing it to drop below a certain threshold. That pretty much sums up how the wealthy stay wealthy and can become even wealthier. The bottom line is that asset allocation is not an exact science and it all depends on your financial goals and experience. What you can do as a small investor is to diversify your portfolio. While you might not have the money to buy real estate and a good amount of stocks, you can seek alternative investments. For example, you can trade stocks, ETFs, currencies and another part of your money to be allocated to cryptocurrencies. Let’s now see how the ultra-rich invest their money. Are ultra-high net worth strategies different from high net worth strategies? Generally, they are similar, but there are still a few important details to pay attention to. See below: Ultra-High Net Worth Investment Strategies. A new breed of investors evolved among high net worth individuals and these are the ultra-high net worth investors. As explained above, UHWIs are defined as having investable assets of at least $30 million. So, where do the ultra-rich invest their money? According to the Wealth Report Attitudes Survey 2020 (see figure below) the UHNWI asset allocation model is more diversified. The Wealth Report revealed that the average UHNWI investment portfolio was invested in each asset class as follows: 27% in real estate. 23% in equities. 17% in bonds and fixed income. 11% in cash (currencies). 8% in private equity. 5% in collectibles (including art, antiques, and other expensive items). 3% in gold and precious metals. 1% in cryptocurrencies (Bitcoin and altcoins). We can note that there is an increased interest in investing in the long-term, which is the case for real estate investments. Additionally, you can see that 11% of the wealth is held in cash, which means UHNWIs are active in the forex market as well. Currency trading for high net worth individuals is again done over the long term. Now, how the average investor can invest like a billionaire? Ray Dalio an American hedge fund manager said: “It’s more difficult to succeed in the markets than it’s to succeed in the Olympics” For more trading quotes, please see Top Trading Quotes of all Time. While everyone is saying it’s difficult to succeed in the markets, it’s not impossible. And, trading like a billionaire is a different ball game altogether. If you want to replicate the ultra-high net worth investment strategies and be a billionaire someday, these are the 10 things you should be doing: 1. Invest only in what you know. 2. Understand the difference between price versus value. When the price is well below the stock value than it’s the best time to buy a stock. 3. Identify cheap investments (e.g. high net worth cryptocurrency trading). 4. Invest in durable time tested businesses. 5. Research the team management team behind a company. 6. “Be fearful when others are greedy and greedy when others are fearful” from Warren Buffett wisdom. 7. Develop a long-term mindset. 8. Invest in Warren Buffett’s Berkshire Hathaway stock, which has outperformed the S&P 500 for decades. 9. Invest in overseas stocks. 10. Diversification. These investing principles can help you invest your $10,000 like an ultra-high net worth investor. Final Words – High Net Worth Strategies In summary, when you’re a high net worth investor managing your wealth can be a challenge. The HNWI don’t invest like the average investor, they use ultra-high net worth investment strategies to accumulate more wealth. The investing strategies for the high net worth investor that have produced the most profits are the ones that are sufficiently diversified. Diversification is key to how wealthy people preserve their wealth and accumulate more wealth. You can too invest like a wealthy person if you start using the principles outlined through this high net worth strategies guide. Thank you for reading!
NASDAQ:EQRREducation
by Tradingstrategyguides