I-bonds paying over 9%. Too bad we can only put in $10k per year…..

If there is a spouse each partner can do 10k. As can any existing trusts.

Meta (Facebook) slammed today. I went through their results and looked at the current valuation. I dove in with a full allocation at $100.04 today. I normally buy a half allotment for my first purchase, but the valuation is extremely compelling.

ooh boy. I've heard nothing but bad things about their metaverse and graphics and the kids just laugh at it.

The 9.62% Yield on I-Bonds Is Gone. They Might Be a Better Buy Now

There was a rush to buy inflation-protected savings bonds (I-bonds) before the Oct. 28 deadline to lock in the 9.62% rate. Those who waited might be better off in the long term.

The new rate on I-bonds is 6.89%. The rate is good for six months on I-bonds purchased between Nov. 1 and the end of April. After that, the rate will reset every six months to whatever the current rate is.

What many people don’t realize is, because of the way I-bond yields are computed, they might be better off purchasing now than buying before the Nov. 1 reset.

When I-bonds are purchased online through the Treasury Direct website, an individual can purchase up to $10,000 worth per calendar year. When a paper application is used, only $5,000 per year can be purchased.

The I-bond must be held for at least one year. If you redeem it before five years, you lose the last three months of interest.

Here’s why people who buy after the Nov. 1 reset might be better off over the five-year minimum holding period or longer than those who bought by Oct. 28.

The yield on I-bonds is composed of two rates.

First is the fixed rate, which is determined by the Treasury Department and lasts for as long as you hold the bond. The other rate is the variable rate that is based on changes in the Consumer Price Index over the last six months.

Every six months, the total rate is reset. The fixed rate when you purchased the I-bond stays the same, and the variable rate is added to it.

For I-bonds purchased before Nov. 1, the fixed rate was 0%, and it had been 0% for some time.

But, because of the increase in market interest rates in 2022, the fixed rate rose to 0.4% for purchases after Nov. 1 through the end of April.

Changes in the variable rate will be the same for I-bonds purchased before Nov. 1 and those purchased after Nov. 1. But bonds purchased on Nov. 1 or later will have the higher base rate. Over a holding period of five years or longer, that higher base rate could be better compensation than locking in the 9.62% for six months.

Another thing to keep in mind is that the 9.62% rate is an annualized rate. Yet, it is guaranteed for only six months. After the first reset, the actual yield for the first year of holding the I-bonds is going to be less than 9.62%.

Don’t fret if you missed buying I-bonds before Nov. 1. They’re still a good place to hold $10,000 of cash for five years, and you could be better off buying $10,000 of them now and another $10,000 in early 2023.

I had an old EE paper bond that was nearly 30 years old. I saw you could turn these in on the Treasury Direct site. Little did I know you had to print out a form and mail them in. So I did that. I got a note that they received the bond, but it will take 13 weeks to process.

It seems to me that the government has decided they don’t want to deal with bonds anymore. Every elderly relative I had would give them as gifts. When they decided to make them 100% electronic they drove away 90% of their buyers. Then to make it nearly impossible to get your money out I’m not sure why anyone would buy one.

Meta continues to look strong since the buy recommendation.

Anyone like Crowdstrike after today’s meltdown? The valuation still looks crazy.

Meta continues to look strong since the buy recommendation.

Anyone like Crowdstrike after today’s meltdown? The valuation still looks crazy.

I listen to every podcast Ritholtz Management/The Compound puts out. Josh brown has been screaming crowdstrike since it ipo'ed. I bought precovid and have bought a few more times. and will buy again

Its revenue growth remains healthy. It is producing significant GAAP operating cash flow, although a big portion of that is deferred revenue. GAAP earnings are elusive because of stock comp expense.

I just think the total valuation looks high. You have to be quite bullish on revenues continuing to grow rapidly.

Meta continues to look strong since the buy recommendation.

Anyone like Crowdstrike after today’s meltdown? The valuation still looks crazy.

Meta Platforms Inc. META, +23.28% was the latest to promise that payroll cuts will flow back to investors, announcing Wednesday a fresh $40 billion stock-repurchase authorization despite having more than $10 billion remaining in its buyback coffers. The news overshadowed an earnings miss and Meta’s third consecutive quarter of declining sales and profit, and the effects were hard to miss — shares spiked nearly 20% in after-hours trading, a move that would add roughly $80 billion back to the market capitalization of Facebook’s parent company.

Wall Street fucking sucks.

Meta Platforms Inc. META, +23.28% was the latest to promise that payroll cuts will flow back to investors, announcing Wednesday a fresh $40 billion stock-repurchase authorization despite having more than $10 billion remaining in its buyback coffers. The news overshadowed an earnings miss and Meta’s third consecutive quarter of declining sales and profit, and the effects were hard to miss — shares spiked nearly 20% in after-hours trading, a move that would add roughly $80 billion back to the market capitalization of Facebook’s parent company.

Wall Street fucking sucks.

Meta has about doubled since I put the buy order in. Glad I went full allocation on that purchase. They got religion on their spending habits, and their user stats were healthy. It was a screaming buy at the time and just glad I pulled the trigger.

PayPal is looking strong and hoping it blasts off after earnings next week. I doubled down at $70, so I am at full allocation on that one.

GPK has been strong as well from the original purchase date.

I was noodling a play on NWL when it was at $13, where I think it could double. It is already above $16, so I think I will wait past earnings and see how it goes.

Meta has about doubled since I put the buy order in. Glad I went full allocation on that purchase. They got religion on their spending habits, and their user stats were healthy. It was a screaming buy at the time and just glad I pulled the trigger.

PayPal is looking strong and hoping it blasts off after earnings next week. I doubled down at $70, so I am at full allocation on that one.

GPK has been strong as well from the original purchase date.

I was noodling a play on NWL when it was at $13, where I think it could double. It is already above $16, so I think I will wait past earnings and see how it goes.

Your profit on META was built on the backs of tens of thousands of laid off workers.

I am not a legal expert, how many times do I have to say it?

Meta has about doubled since I put the buy order in. Glad I went full allocation on that purchase. They got religion on their spending habits, and their user stats were healthy. It was a screaming buy at the time and just glad I pulled the trigger.

PayPal is looking strong and hoping it blasts off after earnings next week. I doubled down at $70, so I am at full allocation on that one.

GPK has been strong as well from the original purchase date.

I was noodling a play on NWL when it was at $13, where I think it could double. It is already above $16, so I think I will wait past earnings and see how it goes.

Down a total of 4% since the first of January. Unless you know the markets like Deni$, your 401K probably looks similar. Looking forward to Nas telling us how great the Biden economy is.