TED, like Roger, I do not understand why there would be any tax selling this year in BROC, as you and Chris anticipate. (That is, of course, unless it tanks in the next two months -- Heaven forbid!)
If I have done this correctly, the following should be a chart of BROC for the past year:
quote.yahoo.com
Other than a very brief northward sprint in May, BROC has seldom traded significantly above current levels in 1997. Thus, there should be relatively little in the way of newly incurred BROC unrealized capital losses out there. If anything, there are probably more unrealized capital gains out there, which could make for a brief dip next January, as holders defer gains into the next tax year. Admittedly, I am discounting the (substantial) historical losses that were sustained by BROC shareholders prior to the start of the current year. But, my intuition is that those are largely already "accounted for," tax-wise.
I could be wrong about this, of course, and I would appreciate your thoughts on the matter. And yours, Chris.
For what it is worth, I think your trading strategy, vis-a-vis buy-and-hold accounts and tax-sheltered trading accounts, is right on the money, as it were. The only complication is that short sales are prohibited in IRA accounts.
Go BROC!
RB
P.S. I much appreciate your contributions on the Zitel thread. |
