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Stupid investing question, but I'm trying to get my emergency ducks in a row...

I've got a taxable brokerage account with a combination of short and long term investments. It's relatively new, so I've never sold investments in it. What happens when selling some shares one of those funds? Is it pro-rated between short and long-term for capital gains purposes?

 

Edit: found my answer on Fidelity's website. First in, first out. 

Edited by Edman85
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2 hours ago, Edman85 said:

Stupid investing question, but I'm trying to get my emergency ducks in a row...

I've got a taxable brokerage account with a combination of short and long term investments. It's relatively new, so I've never sold investments in it. What happens when selling some shares one of those funds? Is it pro-rated between short and long-term for capital gains purposes?

 

Edit: found my answer on Fidelity's website. First in, first out. 

I’m with Schwab, and they let you designate which shares you want to sell in order to maximize advantages for yourself. For instance, if you have 100 shares of XYZ and the first block of 50 you bought is above water and the second block is below water, you could designate the second, more recent block of 50 shares for sale so you can take the loss for tax purposes, if you so choose. I would bet Fidelity lets you do the same?

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2 hours ago, Edman85 said:

Stupid investing question, but I'm trying to get my emergency ducks in a row...

I've got a taxable brokerage account with a combination of short and long term investments. It's relatively new, so I've never sold investments in it. What happens when selling some shares one of those funds? Is it pro-rated between short and long-term for capital gains purposes?

 

Edit: found my answer on Fidelity's website. First in, first out. 

Ive been wondeing this as well (Vanguard for me) Forced  FIFO is unfortunate. 

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I understand you're ignoring what I said, and that's fine, but for anyone else who cares, you might want check into whether your online brokerage allows different ways to sell than just FIFO.

With Schwab, for instance, when you get to the sell screen, you will see this:

 image.png.dcebdf79118f3cd81866fdb5033e9a7b.png

Click the First in first out link below the sale, and you get these options:

image.thumb.png.ed1d3dc2a56ee6fe4008c782f84da23e.png

As you can see there is a wide range of flexibility available to how you want to see your stocks, including specific lots in the middle of your holding.

Edited by chasfh
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Don’t know if the attached link will include a paywall but the gist of my point in posting this is below, primarily the second paragraph. 
 

https://www.morningstar.com/bonds/post-election-deficit-concerns-add-fuel-jump-bond-yields?utm_medium=referral&utm_campaign=linkshare&utm_source=link

Fed Chair Jerome Powell was asked about the recent runup in bond yields at his press conference following the rate announcement Thursday afternoon. “We’ve watched the runup in bond rates, and it’s nowhere near where it was, of course, a year ago,” Powell said. “I guess the long run rates are well below that level, so we’re watching that. Things have been moving around, and we’ll see where they settle.”

To some degree, the rise in long-term yields could even tie back to the Fed’s rate cuts, says Michael Plage, portfolio manager for several bond funds at Fidelity, including the $38.9 billion Fidelity Advisor Total Bond FEPIX. “It is not unusual for the 10-year Treasury yield to rise as the Fed is cutting rates, as easier monetary policy is generally welcomed by the economy and typically leads to higher growth, possibly higher inflation, and therefore higher future interest rates,” Plage says.

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3 hours ago, 1776 said:

“It is not unusual for the 10-year Treasury yield to rise as the Fed is cutting rates,

The 10yr is yield is still running below everything shorter than 4M, so the bond market still hasn't pulled out of it's yield curve inversion. If the fed actually thinks they are getting near their so-called 'equilibrium' short term rate, long term rates are destined to go up more. Short term rates would have to fall to something like ~3.5% to support where the 10yr rate is now and they aren't getting there for while.

Edited by gehringer_2
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45 minutes ago, Deleterious said:

Something not discussed much anymore.  Bitcoin is at an all time high of just over $80,800.  

Of course, by time you read this it will probably have gone up/down another 10%.  

All fiat currencies exist in part based on what an author I'm reading (Yuval Harari: "Nexus" ) would call an intersubjective reality. For instance the dollar functions primary because people have a believe the US government and the Federal Reserve will act effectively to preserve it's value. Bitcoin functions solely because people believe there will eventually be someone out there that will pay more for it than they did. That's a lot less to go on than the full faith and credit of the US Gov, but it's been enough so far.

Edited by gehringer_2
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I find it interesting that Ferrari is third.

Elon Musk’s Trump bet has paid off so well that Tesla is now worth more than most of the rest of the car industry combined

Quote

On Friday, Tesla reclaimed its place in the elite club of companies worth more than $1 trillion after adding a full third in market capitalization since Election Day less than a week ago. The last time Tesla was worth this amount of money it was April 2022, Musk had just revealed his $44 billion plan to acquire Twitter.

Relative to its peers, Tesla is now worth more than the next 15 largest carmakers combined—from Toyota and General Motors all the way down to Jeep’s parent company Stellantis and Hyundai. 

 

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5 minutes ago, Deleterious said:

If he turns the nation's MAGA global warming deniers into green car drivers I'll live with it! :classic_biggrin:

but just as possible his involvement in government will end up ticking off even more potential buyers of all stripes than his political activism already has, and if Tesla's sale don't pick up accordingly the share prices can go down as easily as it went up. 

A possible winner for Musk would be a postal service contract for EVs.

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1 minute ago, gehringer_2 said:

If he turns the nation's MAGA global warming deniers into green car drivers I'll live with it! :classic_biggrin:

but just as possible his involvement in government will end up ticking off even more potential buyers of all stripes than his political activism already has, and if Tesla's sale don't pick up accordingly the share prices can go down as easily as it went up. 

A possible winner for Musk would be a postal service contract for EVs.

He already has several police dept contracts. I've seen a few on the streets near here.

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3 minutes ago, CMRivdogs said:

He couldn't be any worse than the current Trump appointed guy. Probably gut it quicker as well. 

Thinking about the PO - it would be interesting to get someone (probably not Musk!) who could think outside the box of paper a little. What if the PO set up a gov ISP that would allow you to go to the PO (or use a verified account from home) and sign a document and then have that reproduced and verified at the other end electronically by a secure government chain of  transmission? There are a private services that do that now but it's kind of mess of various nethods and operators and you never really know if you can trust any of them with your info or $$.

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At this point where I live a horse would be faster.

I wonder why he decided to make some of his cars so ugly? Jokes about they look like a pinewood derby car in 1950. From a manufacturing standpoint, it makes a bunch of sense. Deming might be proud.

ON EDIT: Marketing department, not so much.

Edited by Screwball
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7 minutes ago, Screwball said:

At this point where I live a horse would be faster.

I wonder why he decided to make some of his cars so ugly? 

ON EDIT: Marketing department, not so much.

HA! the truck thing certainly benefits by not having to do any forming of the stainless. I wonder if they stress relieve the welds though - or will they all end up with stress corrosion cracking from road and sea salt?

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36 minutes ago, Screwball said:

I don't think it's stainless. Mixture of steel and aluminum. Either way, welds easy and sound. If there is any stainless, using a different grade solves the corrosion problem.

here's the material guide of a body blowup. Looks like giant set of galvanic corrosion opportunities! Well maybe they insulate the living daylights out of all the joints or put anodes/galvanizing on the mild steel areas.

https://service.tesla.com/docs/Cybertruck/BodyRepair/BodyRepairProcedures/en-us/GUID-B4A61C9E-4CE2-4D9A-B9B3-B6D74EEFE038.html

I liked this one also:

Quote

Warning
Do not heat the adhesive on a bonded panel above 100°C (212°F) unless that panel is being removed. Heating the adhesive above 100°C (212°F) can weaken the adhesive bond and compromise vehicle crash integrity.

How hot can a body panel get in the desert sun of a warming planet?

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