Depends also on your tax situation.
I'm in the highest Federal tax bracket, 39.6%, plus about 8.5% California state tax, and will be for the next three years, due to Roth conversions. Add the two, adjusting for the fact that state tax is deductible on federal returns, and I'm in a 45% marginal bracket.
My basis on my FLEX shares ranges from 8 to 10 for LT held shares, and 12 to 20 for ST held shares. I sold my higher basis shares, already. The tax consequences of a sale is appreciable, because of the low basis.
If FLEX trades at 60 at year end, and then grows at 35% per year for the next two years, the stock price will be 110. By then my Fed tax bracket should drop to 31% marginal rate, and then I might resume some short term trading strategies in my taxable account. But by then, all my FLEX gains will be long term, and over 80% of the then current share value.
Trying to time these 30% pullbacks might be fun, but often doesn't work out as well as one might think, if you have a good long term grower. And I don't think we'll see a 50% drop to the low 20s for FLEX this year, similar to the almost 50-70% drop we saw last year. I'll just let my taxable shares ride for now.
Paul |
