Apple vs. the S&P 500: Five days of pandemic panic

6 Comments

  1. Roger Schutte said:
    While I never want to see a panic, I think this is a good time to convert some IRA dollars to Roth.

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    February 25, 2020
  2. Peter Kropf said:
    Coverting from IRA >>>> Roth generates income which is taxed. Would you still recommend the conversion despite the tax event?

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    February 25, 2020
    • Roger Schutte said:
      For me, the answer is yes as I think tax rates are at their lowest now and will be higher in the future. Gains in Roth accounts are untaxed. If you have other assets to pay the taxes, then converting assets now that you expect to be higher in the future, when they are of lower value simply maximizes the value of the conversion. I think filling up a tax bracket (22 or 24%) makes a lot of sense right now.

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      February 25, 2020
  3. Grady Campbell said:
    IRA -> Roth is definitely worth considering if you expect to leave IRA funds to adult children, etc; the passage of the SECURE act that eliminated stretch inherited IRAs, require full withdrawal within 10 years of your death, could put a big unavoidable tax burden on them; also could be good if you expect to benefit from more years of tax-free gains.

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    February 25, 2020
  4. John Konopka said:
    I wonder how long it will take till this virus is normalized. Right now there is panic because of so much uncertainty. There was a story the other day that 2/3 of the infected cases have gone undetected. This is good news and bad. The good news is that if there are so many more infections then the fatality rate is much lower than expected. The bad news is that it spreads more easily and is less detectable than we thought.

    Companies are reopening offices and stores in China, but now there are travel restrictions to South Korea and there is rising concern about Japan.

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    February 25, 2020
    • Jacob Feenstra said:
      All indications are that the poison cup is far from empty. I don’t think that AAPL (and the market in general) has hit bottom yet. Only yesterday I said that the stock could hit $270 or even $250. Now that it is already is down to $288 I think it will be at least down to $250. I so wish I could say differently.

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      February 26, 2020

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