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To: Jim Patterson who wrote (51516)	7/15/1998 8:25:00 PM
From: K. M. Strickler	Respond to of 176387

JP, If a stock is going to continue to drop, in ones opinion, that selling it and taking the tax hit is better than holding it. I don't have a problem with that. But what about the possible gains that can be made by 'trading' a stock in a narrow range? The problem is there that if you start after you have established a share cost of say $1, the tax liability, at least on the first trade could be fairly heavy, and the investor may feel that this is only a small temporary dip. One cannot expect the 'professional' manager to take this into account, since the manager can't possibly know all of the 'tax' exposure that their clients have. It is really a moot point, since the 'manager' has already 'churned' the account in the recent past to generate their commissions, and are not in any high price stock at $1. It has been my experience that ignoring 'tax' consequences means you pay the 'tax' - maybe unnecessarily! Regards, Ken