Fleckenstein
Capital.com

Often wrong, never in doubt. – Bill Fleckenstein

Daily Content
Fleck's Thoughts
Appearances

Ask Fleck


Q: Dalio is doing this thing where he donates 50 to anyone's fave charity. It took me 30 seconds to send it to Roanoke. Simply info, In case other want to do so. thanks!

Q: Do you have any position in GMTFN?
Do you think the insider buying is meaningful?

Q: What scenario could you envision where precious metals investors get their bitcoin era and thus bitcoin (gold) and etherium (silver) type returns?? Feels like it should be now. After being pushed into precious metals 14 years ago just seems like I'm loaded up with insurance waiting on the inevitable car crash and the car just keeps near missing.

Q: Someone wrote to you yesterday about a position that is a PFIC and stated, incorrectly I believe (I am not a tax expert), that someone with a PFIC position in an IRA is subject to its specialized tax reporting. I did some research and found several tax accountant sources that report in 2017 the IRS issued regulations to clarify and minimize tax reporting burdens for certain investors in PFICs. One source reports:

"The final regulations codify prior IRS guidance related to the definition of a shareholder of a PFIC. Specifically, owners of an interest in a PFIC that is held through a tax-exempt entity are removed from the definition of PFIC shareholders. Therefore, for example, neither beneficiaries of pension funds nor owners of an IRA should be treated as shareholders of a PFIC if the pension or IRA is invested in an offshore feeder fund (blocker) that is formed as a foreign corporation. This clarified definition should be a welcome relief to a significant portion of alternative investors who are now exempt from filing Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund."

PFICs held in regular taxable investment accounts may be subject to the special tax filings your writer referred to.

I know this issue isn't what your column is intended for, but it does concern a segment of your readers who invest in some companies you consider attractive investments. The following link, from Cohen & Co., an established tax advisory service, is the source from which I quoted: Updated PFIC Rules and Relaxed Reporting . Thank you.

Q: Could you share why you choose to short AAPL to express your bearish view on the market instead of other crazy high flying stocks like RIVN, etc? Is it because APPL is still trading on business fundamentals, other stocks like TSLA, RIVN are totally irrational and detached from valuation?