Category: Stock Market
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Diversify or Die (with 57.8% Probability)
In February of this year, I was speaking with an advisor in Utah. We were discussing the use of a Stock Diversification Trust (click here to request an Advisor Guide) for a client who had 80% of her net worth in a single stock. She was reluctant to sell because she…
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Will Tesla Own the World?
If Tesla won’t own the world, consider selling your Tesla shares. In recent trading, the market cap of Tesla reached $869 billion. If you own Tesla, this high market cap is good news. But if you plan to keep Tesla stock, this astronomical market cap may, in fact, be bad news. If you, or…
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Time to Sell Apple?
If you have clients who have more than 10% of their net worth in Apple stock, please read on. You might want to consider how much uncompensated risk your clients are taking. Why? Because trees, even Apple trees, don’t grow to the sky. At its recent highs, Apple is valued…
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Time to Sell Apple?
Does Apple’s board know something? Apple has just announced that it cut CEO Tim Cook’s pay by over 50% Here are five reasons for clients to consider diversifying any Apple holding greater than about 1% of the portfolio. “Return-Free Risk”: This is the opposite of the risk-free return we hear…
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The Bigger They Are, The Harder They Fall; Is Apple Next?
We all know how successful Apple has been historically.Or do we?We’ve heard from a number of people, including some advisors, who say that Apple will always grow.At worst, these people say, “Apple will maintain its position as the world’s most valuable company.”The unspoken assumption is that the stock is a…
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Bear Market Signal
The article discusses bear markets related to the S&P 500 and how it could signal another bear market. Advisors recommend clients lock in gains, especially where large positions are concerned. Capital gains taxes could be managed by capitalizing on Sec. 664 Stock Diversification Trust, a tax-exempt trust that allows stockholders…
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Greed Is Back
The stock market’s recent upswing may offer opportune moments for investors holding concentrated stock positions to divest. Investors reticent to sell due to capital gains taxes might consider a Sec. 664 Stock Diversification Trust. Contributed stocks are sold tax-free, resulting in assets under management that can be reinvested.
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Your Clients With Apple Stock: Too Risky?
Apple may be dangerous to your financial health. A month ago, we discussed the dangers of holding concentrated positions in large, “reliable” companies like Apple. Since then, Apple has lost nearly $400 billion of market value. Now, we see four reasons to diversify any large holding Apple. They are: 1. China…