A friend of mine recently, upon hearing my sober tech analysis, asked if i would sell CSCO at 30 (never mind 23). I said, depending on your outlook, portfolio concentration, and how much more pain you could handle, i would sell some csco here. She said that she had too much gain in CSCO to sell it. I almost responded, "Well look how much taxes you saved by not selling it at 60" but decided to be nice. My experience is that more money has been lost to avoid paying taxes than any potential tax liability. I personally didn't want to sell CMGI at 230 because of the huge cap gain i had in it. smart, eh. ( I know, CMGI is not a gorilla) Taxes are a factor, but only one of many.
a true GGer should add to their positions in the stocks they believe in as they trend down. They WILL be long term huge winners. I am not, and have never claimed to be a 100% GG'er. I also look out at the current economic conditions, and fear that the downturn will be longer and deeper than most wish to perceive, even from the current vantage point. I hope I am wrong. I wish to hedge my bet in the interim. Remember Marty Zweig's famous line. The trend is your friend. The trend is tech is down. When it reverses, truly reverses, there will be PLENTY of upside. No need to try and catch the bottom. Larry |
