Taxes....
We had a discussion a few months ago about the impact of taxes.....and selling securities to raise cash to pay taxes. IMO this was definitely one of the factors that went into some of the selling in the markets during March, 2000. The other side of the argument....especially this year....IMO will be the individuals who have paid estimated taxes during 2000, and have written off gains, and will be receiving large refunds.
Do you think the number of people receiving refunds will be reinvesting in the market....especially now looking at what most would consider to be "bargain prices" on many of the tech companies? Quite a few people will receive funds, as well as adding money to their IRAs, and that money needs to be deposited by April 16th.
IMO the factors that we saw in the market last year during this time frame, and what we will see this year are completely different. With all of the damage that has occurred with the technology stocks, I would think that this would be the first sector to rebound.
I hold a much more diversified portfolio than I did last year.....with some companies like CHK, TMR, DNR, ROYL, and even PEET. (sorry about that....I know it goes against your SBUX loyalties!). PEET has opened up some new store locations in our area, and IMO they have picked some fantastic locations. (they must have worked with an excellent real estate broker.....location, location, location!) I also hold SPK (soon to be EOP), CAT, as well as the technology stocks I've always followed.
Any thoughts on how the tax selling (or lack of selling) will effect the market? |
