Tuesday, July 14, 2020

Let's Fully Open the IRS

I'm a frustrated taxpayer.

I submitted my return by mail in mid April 2020.  Where's My Refund app does not yet acknowledge receipt.

I finally was able to talk to customer service at the IRS last week and was told that the offices won't be staffed to work on mail returns until August 1, 2020. 

Please get the IRS fully open soon so that mail in returns can be processed.

For more on  Ideas You Can Use, check back  Tuesdays for a new segment.

This is not financial, pandemic or tax advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

Monday, July 13, 2020

Either a Buy-the-Dip Day or a Stop-Loss-Selling Day

Tomorrow, either traders will buy the dip and keep the market from falling, or stop loss orders will be executed and take the market down further.

I'll be prepared for either scenario.

For more on Strategies and Plans, check back Mondays for a new segment.

This is not financial nor investing advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

Tuesday, July 07, 2020

One Investing Theme

I've been looking at some of the stock with rocket recoveries since the March 2020 bottom:  WIX, SHOP, SQ and others.  A common theme is that they are companies that can positively impact small business operations.   WIX is a website tool for small business.  SHOP works with small businesses for online orders, including websites.   SQ is a payment processor for small businesses. 

Probably too late to buy now, but worth considering if/when the market pulls back.

Full Disclosure:  We own shares of SQ at the time of this posting.

For more on  Ideas You Can Use, check back Tuesdays for a new segment.

This is not financial nor investment advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

Monday, July 06, 2020

Letting It Ride

The stock market is on an unbelievable winning streak.  Despite my skepticism, who am I to dispute the results.   So I am moving from a bias to sell to a bias to hold.  No buying yet.  I still think there will be a time in the future to buy at lower price.

I expect there will be a pullback correction in the next few months, given the uncertainty of COVID-19 spread and the impact of a Biden Presidency.   I expect to put some additional funds into stocks at that time. 

Until then, I will patiently wait for the pullback, though I am itching to buy into this rally. 

For more on Strategies and Plans, check back Mondays for a new segment.

This is not financial nor investment advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

Sunday, July 05, 2020

Market Trend is Up

While I am still skeptical of the current market rally, I admit that I am wrong short term.   The market is definitely going up in the near term.   There is a lot of optimism for a return to pre-Covid19 days.  Til proven otherwise, I am putting my selling on hold and riding the upward wave.

In particular, I will be watching Workhorse (WKHS), which we have owned since 2014.   It dropped as low as 46 cents in 2018 and had 2020 low of $1.37.  Last week it hit an all time intraday high of  $22.90.   Amazing and unbelievable.   I have open sell orders at $30, $50, $99, and $200.  LOL  If they execute, I will know irrational exuberance has taken over the market.

Full disclosure:  We own share of WKHS in our personal account.

For more on  New Beginnings, check back Sundays for a new segment.

This is not financial nor investment advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

Friday, July 03, 2020

An End and A Beginning

All my life, I've been working towards a financially sustainable retirement with a comfortable/conservative margin of safety.   I've been consistently frugal, living below our means, and maximizing savings through coupons, sales, deals and minimizing tax liabilities.  I've been a ruthless detailed numbers person, evaluating different options and scenarios, and sweating through the 08/09 recession and the 20 recessions while in retirement.

We're on track to achieve that margin of safety in this year on in 2021.  Barring a major financial disruption, I expect we can easily maintain our current lifestyle even with 3% inflation per year for the next 22 years.   Probably even for double that many years, but I haven't done the detailed analysis.    This includes putting 2 kids through college debt free in the next 15 years.  I can probably back off day to day managing/scrutiny of our retirement investments... unless there is a major event such as elimination of Social Security, high inflation, or a long term market crash.

Now that the financial part is mostly done, what's next?

Next is determining how we want to enjoy a financially sustainable retirement.   I want to give this some thought and discussion since we are shifting mindsets from how we got here, e.g frugal, living below our means, etc.  To me, I think we are more likely to run out of time than out of money.  So I want to answer a couple questions to start.  What do I want to spend (more) time on doing next?    How do we want to spend money to give us more time?    For me, that will be the beginning of a new chapter in our retirement journey.

For more on  Reaping the Rewards, check back  Fridays for a new segment.

This is not financial, retirement, investment nor life advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

Tuesday, June 30, 2020

An Example of Exuberance

This market is crazy.  Here's an example.

Workhorse (WKHS) was $2.63 on June 1, 2020.   Today it hit $20.00 before pulling back.   All on rumors of the USPS closing bids for the next generation mail truck on July 14.   Workhouse is one of three remaining bidders and the only all electric design.

Currently, Workhorse loses money on every vehicle it sells, based on sales to UPS.   There are several larger companies now competing in the same area.    However, Workhorse is riding the same wave as other EV companies, such as Nio and Nikola.

I've been selling into this rally.   My last sale was at $15.15.  Unbelievable.  I've owned shares since 2014 at much lower prices.   I expected to lose my entire investment eventually.  Not complaining and enjoying the ride.  But fully expect the price will come back to reality soon.

Full Disclosure:   We own shares of WKHS.

For more on Ideas You Can Use, check back Tuesdays  for a new segment.

This is not financial nor investment advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

Monday, June 29, 2020

Waiting for New Lows

Although I was tempted to buy on Friday, I'm still waiting.... waiting for new lows before buying.  The current market valuations do not make sense to me.    It feels somewhat like 1999 and 2008, where the market defied the economic situation. 

So I'm going to wait to buy, despite the market making me feel very stupid for not buying.   It is painful, watching growth stocks hitting new 52 week and all time highs.  I'm going to wait until stocks test the March lows. 

Hopefully, I will get a chance to buy in a couple months, but it may take as long as waiting until November, after the elections results are decided.

For more on Strategies and Plans, check back Mondays  for a new segment.

This is not financial, nor investment advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

Sunday, June 28, 2020

Bizarro Market

"It's different this time." ~ Wall Street justification

Up is down, left is right, and bad is good.    Nothing seems to make sense to me.   My spouse tells me I need to think about the what is coming in the future.   Not what has worked in the past.   Good advice, but I think I will slowly make the transition.  In case, it isn't different this time:-)

For more on  New Beginnings, check back Sunday for a new segment.

This is not financial nor investment  advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC

Saturday, June 27, 2020

Expect COVID-19 to Return

"I'll be back." ~ Arnold Schwarzenegger in Terminator

Given the rise of COVID-19  cases in Arizona, Texas, Florida, and California, it seems a resurgence of coronavirus in the U.S. is very likely.   

Business Closings

A subsequent closing of businesses  is also likely, but not as extreme as the first one.   The focus will be on businesses that are crowded with customers.

Bars will be first to close or be severely restricted in capacity.   In my area, based on drive by observation, the bars seem as packed as they were before coronavirus.

Restaurants may be more restricted in capacity such that the business may not be sustainable.

Work from home will be a norm where possible, eventually increasing the vacancies in offices.

Cruise lines won't survive.

On the other hand, all retail establishments will be allowed to stay open, not just essential businesses.  Even with reduced occupancy limits, I expect most will be able to operate profitably.

Personal Restrictions

People will be expected to follow guidelines to prevent spread.

Masks will be required instead of being optional.

Stay at home will be optional, primarily for those at high risk.

Schools

Full time in person school will not occur.   Perhaps part time, or worse case, exclusively distance learning.

Extra curricular activities and sports will be canceled.

Vaccine

A vaccine is not likely given there is still no vaccine for HIV, SARS nor Ebola, which have been around for years, even decades.   

Conclusion

The economy is likely to further into recession, given the loss of jobs, the decline of consumer spending and failure of small businesses.   Cash will become king, despite low interest rates.


For more on Reflections and Musings, check back  Saturday for a new segment.

This is not financial, pandemic nor investment advice. Please consult a professional advisor.

Copyright © 2020 Achievement Catalyst, LLC