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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 147.44-0.6%Nov 17 3:59 PM EST

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To: orkrious who wrote (7938)7/1/1999 1:27:00 AM
From: Math Junkie  Read Replies (1) of 10921
 
<<With the long-term rate now at 20%, versus a short-term rate close to 40%, one has to have almost double the gains from trading just to break-even compared to a long-term hold.>>

Not true. You have to look at what you keep, not what you pay.

Example: You make $100 in long term capital gain. The feds get $20, and you keep $80.

Now suppose instead you made a short term gain of $133.33. In the top bracket, the feds get about 40%, or $53.33, and you keep $133.33 - $53.33, or $80. So you have to make 33% more, which is a lot less than double, or 100% more.
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