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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Herschel Rubin who wrote (63547)	12/2/2000 8:06:57 AM
From: Louis V. Lambrecht	Read Replies (1) \| Respond to of 99985

HR - tax-selling? or funds redemption? Selling anyway. Heard from many sources that the funds will be distributing some gains. Although most funds do perform very weakly (holders seeing their capital melting), the holders will have to pay taxes on that distribution. Lose money + pay taxes: IMHO, mom & pop will rotate their funds as they used to--> T-bills. Expecting the coup de grace of the Naz before X-Mas. Nicely in sync with the 9 month cycle.

To: Herschel Rubin who wrote (63547)	12/2/2000 8:13:45 AM
From: Wyätt Gwyön	Respond to of 99985

re: tax-loss selling, one issue to keep in mind is that while many may have net losses for the year, they may also have sizeable net gains from earlier years, so pairing those old gains with new losses may be attractive. The question is how large a population that would be. I wonder if anybody has done a study of how tax issues affect investor behavior. I know many people who never want to take the tax hit and end up holding all the way down (e.g., DELL). At a given point in time, it always seems like a bad deal to take a 40% or 20% tax hit, until the market gives you a 50% hit and you still have paper gains...

To: Herschel Rubin who wrote (63547)	12/2/2000 11:02:19 AM
From: Les H	Read Replies (2) \| Respond to of 99985

Nasdaq 9,500 by 2005 www2.marketwatch.com re: tax-loss selling The Fidelity selects will be distributing cap gains over the next three weeks. The cap gains distributions as a portion of NAV has risen as the funds have dropped: Fidelity Healthcare 10% Fidelity Software 35% Fidelity Computer 24% Fidelity Communications 30% Fidelity Japan 20% Fidelity Japan Small Co 30% Fidelity Stock Selector 10% The conservative value and diversified funds appear to have low distributions of 2-5% in Fido. The growth funds are from 5-15%.