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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: MrCash who wrote (3634)	2/24/1998 4:47:00 PM
From: sea_biscuit	Read Replies (1) \| Respond to of 42834

And the rather bizarre explanation given for the "hold" recommendation was that "the higher the tax-rate, the less concerned we tend to be", or something to that effect! The tax laws aren't going to change by a whole lot during the next year or two anyway. So, what's the point in staying in an undiversified portfolio and exposing oneself to added risk? Dipy.

To: MrCash who wrote (3634)	2/24/1998 5:35:00 PM
From: MrCash	Respond to of 42834

More on Sunday San Diego Caller... Now that I really think about it, I would prefer to take my gains in an index fund where I can take my taxes at the 20% rate (when I want) rather than let the money sit inside my stock options to appreciate where I have to pay the high tax rate (nearly 50% for the caller) since the gains are ordinary income. Then again, there is "why pay a tax today that I can defer another year (but at twice the rate)?" Not an easy call, but then I would have thought Bob would have leaned to the side of greater diversity. Then again, I guess most of the gain was already there so cashing in now would incur most of the tax at regular rates and the incremental 10% or so gain on top of a 6x gain noise..... Hmmmmmmm.......Some of these questions Bob gets are alot harder than they first appear. regards Kirk out