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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (127103)	11/1/2000 12:22:10 AM
From: hmaly	Respond to of 1583772

Ted,, Re....It was explained to me a while ago and I barely remember the explanation.... but I think it also has to do with the IRS rule that you can't buy something back for 30 days. I mean 10/31 is a strange year end.....and I suspect there is an IRS reason behind it. ted <<<< Ted, if you think about it, Oct 31 is the natural time to have the end of yr. Why? First off, you want to do your tax loss selling near the end of your business yr. because you can gauge how much you need to sell better at the end as opposed to beginning or middle of the yr.. Secondly, you want to sell at a time when stocks naturally are low. This point eliminates 4q selling because many business do a huge Xmas sales, and thus their 4q earnings are generally the best. The first quarter earnings generally are good because of restocking. That leaves 2nd and 3rd quarter. A lot of people and the MM take vacations in the June to sept. time frame which naturally lowers retail sales and earnings and stock prices. Thus the Aug to Oct time frame is when the tax selling is traditionally done. This also gives you some time to leave your money dormant for 30 days and still catch the Xmas and 4q. earnings runup.