Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: kumar L chalasani who wrote (30469)	10/7/1998 6:56:00 PM
From: Nello Filippone	Read Replies (2) of 95453

Kumar, What usually happens in October is Tax-Loss Selling. If a Mutual Fund or Money Advisor/Manager is going to have a bad year the last thing they would want to do is have their customer pay capital gains for the year. An example would be if a fund sold some Dell today (190% realized gain YTD), a loss is needed to offset this gain so you sell your biggest losers (HAL,FLC,RIG ....). The earlier the losers are sold the more time they have to buy before the end of the year. They cannot realize the Tax-Loss if the security sold is repurchased within the next 30 days. The process is not as trivial as I described, there is much more strategy and planning involved regarding tax efficient strategies when managing mutual funds. The other possibility is that they may see more bad news on the horizon ... IMO we have seen the worse. Hope this helps. Nello

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