High-Risk Investment Considerations for Tax Harvesting: Reddit User's $100k Strategy

A Reddit user’s strategy to use $100k for high-risk investments before New Year’s leverages tax harvesting (offsetting gains with potential losses). Key focus areas include:

• Retail earnings plays: GME (Dec 9 earnings [0]), LULU (Dec11 earnings [3])
• Meme stocks: BYND (delisting risk [4]), DJT (operational inefficiencies [5])
• Volatility plays: QS (solid-state battery potential [2]), SNAP (post-earnings drop [0])

Short-term market impact shows retail sector momentum (Consumer Cyclical +0.49% [0]), with GME (+4.85% [0]) and ANF (+2.87% [0]) leading gains. However, BYND (-3.83% [0]) continues its downward trend, and DJT (+4.34% [0]) shows meme stock volatility.

• Tax harvesting tradeoff: While losses can offset gains, the user prioritizes volatility over fundamentals, increasing permanent capital erosion risk.
• Earnings catalysts: GME and LULU’s upcoming reports are likely to drive short-term volatility, but analyst targets for GME are 19.5% below current price [0].
• Sector divergence: Market shift to defensive sectors (Energy +1.13% [0]) contradicts the user’s high-risk strategy.

• BYND: Delisting risk if below $1 for 30 days [4].
• DJT: Net profit margin of -3916% [0] indicates severe operational issues.
• QS: ROE of -39.9% [0] shows ongoing losses.

• Short-term volatility from GME/LULU earnings could yield quick gains.
• QS’s partnerships with Corning/Murata [2] may drive upside if tech validation continues.

The strategy relies on tax benefits but carries extreme risk. Critical data points:

• BYND: $0.98 price [0], YTD down74.52% [0]
• DJT: Net margin -3916% [0], YTD down66% [0]
• GME: Upcoming earnings (Dec9) and Burry’s report [1] may drive volatility.

Note: This analysis is for informational purposes only and does not constitute investment advice.