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[-] Empricorn@feddit.nl 308 points 6 months ago

Eat shit, lobbying to make simple tax returns something you have to pay Turbo Tax, H&R Block, etc for.

[-] School_Lunch@lemmy.world 48 points 6 months ago

I don't know much about investing, but i wonder if it would it be a good time to short those companies?

[-] nova_ad_vitum@lemmy.ca 112 points 6 months ago

If you don't know much about investing then you shouldn't short anything ever. People who know about investing will tell you that even when your logic is 100 percent sound, the market isn't that predictable and in general the market can stay irrational longer than you can stay solvent.

[-] Lifter@discuss.tchncs.de 28 points 6 months ago

Plus, the news of this would already be priced into the stock, so if anything the price is already low and these companies would need to pivot their business (which would increase the value again) or die (which would lower the price marginally, to zero). Either way, shorting is a bad strategy in this case.

[-] Rubanski@lemm.ee 8 points 6 months ago

Isn't shorting theoretically able to put you in infinite debt?

[-] bamboo@lemm.ee 18 points 6 months ago

Theoretically, yes. A short is sorta a negative stock. When you hold a normal stock, the price can never go below zero. But when you hold a negative stock, there’s no maximum value that stock could rise to.

[-] barsquid@lemmy.world 6 points 6 months ago

I think you would be margin called and just have astronomical but not infinite debt.

[-] mosiacmango@lemm.ee 6 points 6 months ago* (last edited 6 months ago)

Infinite and astronomical are used interchangeably here. Since you have to return a share to the person you borrowed it from, if you borrowed 1000 shares at $5 and sold them to make 5k, if the price jumps to something like $350 like gamestop, it would cost you $350,000 to cover them.

Making 5k to lose 350k might as well be an infinite loss ot that investor, even though its technically a "smallish" sum. At that scale, it would destroy most people.

You can also pay to keep a short going generally and try to wait out the madness, but you have to stay solvent to do it. The very stupid and very surprising "diamond handing" apes caused some hedge fund issues, although I think most just shrugged into other financial instruments.

[-] Wirlocke 2 points 6 months ago

I feel like shorting will always be riskier than normal investing. With stocks you have people at the company doing their best to raise that stock. With Shorts you are betting against a company that's trying to survive.

The chances of the CEO pulling something out of their ass, dubious or not, to maintain their profits is too high.

[-] Num10ck@lemmy.world 48 points 6 months ago

it wouldve been earlier, but now this is priced into the stocks already.

[-] scroll_responsibly@lemmy.sdf.org 9 points 6 months ago* (last edited 6 months ago)

If you get investing returns (like from shorting those companies)… you’re ironically not eligible to use the IRS direct file pilot (or at least for this year).

Edit: this isn’t to knock direct file… which is good and cool (and should be expanded to have more features)

[-] barsquid@lemmy.world 4 points 6 months ago

It is already priced in. Our human speed reactions are far too slow when the news has this obvious of a consequence.

[-] johannesvanderwhales@lemmy.world 3 points 6 months ago* (last edited 6 months ago)

For what it's worth... You're already eligible to a free tax return if you're under a certain income. Edit: Reference - I think a lot of people are unaware of this.

this post was submitted on 30 May 2024
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