Beck

Just an old dog learning new tricks

[Robin Dods @toy59496]

Mandatory Loss Ordering : The Devious CGT Rule That DOUBLES Your Taxation

As if it couldn't get any worse...

An excellent article this morning in the AFR which explains that the Budget now imposes MANDATORY loss ordering of gains against losses.

https://t.co/2jAQI6aLMN

What does that mean?

It means effectively that the government is going to potentially confiscate half of your taxable loss under the new system because you MUST offset it FIRST against any gains from pre-2027 shares that had a 50% CGT discount. Confiscating half of your taxable loss means DOUBLING the tax on your gains.

Again you are particularly screwed with your own portfolio of shares relative to an ETF.

To explain: under the previous rules, capital losses could be applied against whichever capital gains produced the highest taxable income.

The new CGT legislation forces losses to be applied against older gains first- typically gains eligible for the 50% CGT discount.

This diminishes the value of capital losses because they are consumed against partially-taxable gains (because of the 50% discount) instead of fully-taxable gains, increasing tax payable despite no change in the underlying economic outcome.

In the worst case it doubles your taxation. Doubles!!! That's a 100% increase in tax.

I provide a worked example in the image.

This rule is above and beyond all the other problems with the new CGT tax system. And it's hidden....

@DerekFranc90653 @cjoye @tax_oz

[The Chartist @thechartist]

Anyone who says trading "is simple" has never traded or is trying to sell you something.

Trading and the markets are a beautiful, endless game of learning and discovery.

[Race @multiplanet1]

Elon Musk's first wife once described what it's like to watch him fail.

She said he doesn't react the way normal people react. When a rocket explodes, most people in the room go silent. Some cry. Some start calculating the financial damage.

Musk pulls out his phone and starts making calls. Not emotional calls. Engineering calls. "What failed. When can we fix it. When's the next launch." His voice doesn't change. His face doesn't change. The rocket that just cost $60 million is already in the past. The next one is all that exists.

She said it was the most unsettling thing she'd ever witnessed. Not because he was cold. Because he genuinely wasn't affected. The failure didn't register as failure. It registered as data. An experiment that produced results. Results that inform the next experiment.

This is why he wins. Not because he doesn't fail. He fails more spectacularly than anyone in history. He wins because failure occupies zero psychological space. It enters as data and exits as action.

Most people lose not because they fail but because they spend weeks processing the failure before acting again. Musk spends zero seconds. The gap between failure and next attempt is a phone call.

[The Chartist @thechartist]

"...in systematic investing, the interesting question is rarely “what are the rules?”, but rather “how do you build a business and a psychology that can execute those rules, exactly as written, for 25 years?”. - @ConcretumR

As I've said forever, find a simple system and apply it for the long-term.

[Melissa Chen @MsMelChen]

Let’s be real here. Europe has spent decades freeloading on American security. Even now, with every NATO member finally hitting the 2% GDP target in 2025.

But beyond the financial contributions, the real rupture is philosophical and the Iran crisis has shown a spotlight on it.

Europe worships process. Endless committees, consultations, and “predictability.” Macron actually calls it a virtue. For Trump, this is paralysis as his style is to articulate a threat, fix a target, and act. The Americans are men of conviction and purpose. Europe on the other hand lives by bureaucratic liturgy and in high-minded abstractions.

Sure, Americans might make mistakes when acting. But Europe never considers what the costs of not acting actually are.

Just look at how their nations are doing on various fronts, especially on the border crisis, and you see the same cancerous rot that undergirds their foreign policy approach play out domestically. It's the same problem on a different scale.

Iran is currently holding the Strait of Hormuz hostage, choking 20% of global oil and spiking prices past $100 a barrel. Meanwhile, the regime is bleeding from strikes, its nuclear ambitions are still alive despite degraded capability, and its proxies are firing missiles at allies and oil tankers. If this isn’t a clear and present danger to the global economy - of which Europe is a part - then I don’t know what is.

Yet when Washington asked to use European bases to finish the job - bases the US has defended for generations, the response was hesitation and hand-wringing. The US did strike from RAF Fairford, but only after warnings that British soil could become a “legitimate target.”

If you cannot agree that a theocratic regime with eschatological ambitions who have shown no restraint in hitting out at Gulf countries and threatening the world’s energy jugular is an enemy worth confronting, then what, exactly, are we allies about?

Europe loves to preen about being tough on Russia. They issue condemnations and speeches and slap sanctions that hardly work to cripple the Russian economy.

Now here was a chance to do something concrete: let the Americans use the bases they already pay for, help clear the Strait, and actually degrade the Iranian war machine that arms Moscow’s proxies. Turmp didn’t ask for boots on the ground or any kind of more offensive action. All he wanted was permission to operate from the infrastructure America has underwritten for decades.

They couldn’t even manage that.

So can you blame the Americans for seeing NATO for what it is? A paper-tiger alliance that expects Washington to bleed and pay while Brussels and London convenes and deliberates.

If Europe refuses to treat Iran as the threat it is while happily letting American power keep the Strait open and the lights on, then the alliance is already dead. Trump is simply stating the obvious and the Americans are becoming very reluctant to subsidize the European delusion any longer.

[Bill Ackman @BillAckman]

Europe is on a path to destroying itself.

Unchecked immigration of millions of immigrants that burden their welfare states, bring violence and terrorism to their shores, and take over local governance, one city at a time.

Anti-capitalist policies that make it difficult for businesses to adapt their workforces to a rapidly changing competitive environment now accelerating due to AI.

A business environment and tax regime that is antithetical to startups.

The absence of any progress or innovation in AI and limited access to the compute necessary to compete.

Energy dependence due to the green movement at a moment when energy demands are rapidly increasing.

And now, the abandonment of the U.S. when we have asked for limited assistance — base access and flyover rights — in the midst of our efforts to eliminate Iran’s nuclear and ballistic threat which is already within striking range of Europe, after we have invested nearly $200 billion in helping Ukraine.

NATO is about to be toast. Europe’s defense burden is about to rise massively while their economies continue to fall further and further behind.

In short, Europe needs to wake up before it is too late, and it may very well be too late.

[Secretary Kennedy @SecKennedy]

I’ve teamed up with @KidRock to deliver two simple messages to the American people: GET ACTIVE + EAT REAL FOOD.

[Codie Sanchez @Codie_Sanchez]

Never too late.

[John Brown @john_j_brown]

Today, investors borrow cheaply against their TradFi assets to buy Bitcoin.

Tomorrow, investors will borrow cheaply against their Bitcoin to buy TradFi assets.

[John Brown @john_j_brown]

Uptober? Upquarter!

[John Brown @john_j_brown]

After "too big to fail" comes "too big to be saved".

[The Factor Report @PeterLBrandt]

This is the purchasing power of the U.S. Dollar
This is the ultimate chart pattern for all fiat currencies
Some think Gold is a great store of value (preserving its purchasing power) - and it is
But the ultimate store of value will prove to be Bitcoin $BTC

[John Brown @john_j_brown]

Think of yourself as your most valuable asset and treat yourself accordingly.

[Arthur Hayes @CryptoHayes]

Do you hear that? … it’s the sound of the money printers revving up to do their patriotic duty. This weakness shall pass and $BTC will leave no doubt as to its safe haven status.

[The Chartist @thechartist]

Yet again seeing some umming and erring about taking signals with current global conflicts...

1. Have confidence that your strategy will exit longs if the longer term trend changes
2. Near term performance is random. What matters is the long-term application of the strategy
3. Conflicts have been and gone before. Their impact should already be in your backtest.
4. If you override your proven strategy, and that turns out to be a better choice this time around, chances are you'll continue to override the strategy in the future - which invalidates the need to have a proven strategy in the first place
5. If you are umming and erring it's more likely you're thinking money ahead of the process.

[Linda Raschke @LindaRaschke]

Wow...I am shocked at the complacency I see on the part of many wealth managers, pros, and traders - too many looking for a buying opportunity. This steady drip drip down in prices is the most lethal type of trend - a slow OOZE....won't say anything more!!!

[John Brown @john_j_brown]

Ripple is for those who want crypto exposure without having crypto exposure.

[Elon Musk @elonmusk]

🎯🎯🎯🎯

[Cred @CryptoCred]

ETF buy and hold boomers - hope you’re enjoying the traditional ‘Welcome to Crypto’ ceremony 🥳