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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (7938)	7/1/1999 1:27:00 AM
From: Math Junkie	Read Replies (1) \| Respond to of 10921

<<With the long-term rate now at 20%, versus a short-term rate close to 40%, one has to have almost double the gains from trading just to break-even compared to a long-term hold.>> Not true. You have to look at what you keep, not what you pay. Example: You make $100 in long term capital gain. The feds get $20, and you keep $80. Now suppose instead you made a short term gain of $133.33. In the top bracket, the feds get about 40%, or $53.33, and you keep $133.33 - $53.33, or $80. So you have to make 33% more, which is a lot less than double, or 100% more.

To: orkrious who wrote (7938)	7/1/1999 8:13:00 AM
From: Ian@SI	Respond to of 10921

(Ian, clearly, the above applies in the US. I am not sure of Canada's tax structure.) <G> the "grin" was appropriate. In Canada, there's one rate only. 75% of the capital gain is taxable at the investor's marginal rate. For most people, that would be about 38%. I understand that some European governments are more enlightened. They don't feel that Capital Gains are so evil that they should be taxed out of existence. Thus their Capital Gains rate is zero, nada, nil, nothing. Ask me if I'm envious! As an aside, I've moved from an evangelical "buy and holder" to one who believes that taking some profits in these cyclicals while also selling losers to produce offsetting capital losses may be an improvement on pure BUY and HOLD. For this sector at least. Ian.