Greed is back. And that might be a great opportunity for investors holding concentrated positions in a stock who didn’t get out earlier.

As we all know, after a terrible first three quarters, the stock markets have bounced sharply.

But is it a new bull market?

The Greed Index suggests not.

CNN Money compiles their Fear and Greed index.

It has made huge jump toward Greed. Here’s a picture.



Why It Matters
If you have clients who have a concentrated stock position, the markets’ mood swing might offer a second chance for them to get out.

And you should know about a way for them to get out without taking the tax hit.

Taxes
Many investors with concentrated positions don’t want to sell because they don’t want to incur pay steep capital gains taxes.

A good solution for many is a tax-exempt Sec. 664 Stock Diversification Trust.

Here’s how it works. A stock owner contributes stock to the trust. The trust then sells the stock, tax-free. The proceeds become AUM, and the advisor invests the trust assets.

If you think a Sec. 664 Stock Diversification Trust could be right for one of your client situations, please reach out to us. You can use the form on our website to schedule a meeting with us, or call our office and ask for Connor or Ryan.

You may also be interested in our next Stock Webinar. You can register using this form on our website.