Economies of options trading
Max Ansbacher, JD of Ansbacher Investment Management and author of three books on investing including “The New Options Market, Fourth Edition” opened the morning with a discussion on investment strategies with options as the principal source of income. The tax efficiency advantage which Ansbacher’s strategy exploits is based on the fact that 60% of all future’s and option’s trading income is long-term gain and subject to 15% minimum tax rate. The balance for many investors is short term. Therefore, net after tax income is 18% more than the same amount of ordinary income to investors in the top bracket. For example a 2004 gain of 21.67% equals an after tax return of 25.57% from ordinary income.
Commodities and hard assets
Derek van Eck, MBA, Chief Investment Officer of Van Eck Global led the first part of the commodity fund topic. Many believe that commodities will continue to increase in price over the next few years and van Eck reviewed several of the growing middle class markets in countries which are driving this demand. Coal tops the list of commodities which Van Eck spoke of, and in the alternative energy sector he stated that there is a lot to be learned at watching the economics of solar and wind companies as the industry develops because those businesses will shape the future of oil businesses.
Jeffrey Yager, CPA, Managing Director in the Financial Services Group of RSM McGladrey Inc reviewed some of the specific tax considerations for investing in whole or in part in commodities, including registration a......................
Source:
http://www.opalesque.com/AMB2008/46270Opalesque_Hedge_Fund_Workshop_wraps_up.html
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