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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (29875)	4/13/1999 10:36:00 PM
From: RickT	Read Replies (1) \| Respond to of 122087

If I'd held virtually ANY of the stocks I've traded in the last 6 months - I'd be WAY ahead of where I am.

To: Mama Bear who wrote (29875)	4/13/1999 11:17:00 PM
From: J.Y. Wang	Respond to of 122087

Agreed. It is hindsight investing. I am not advocating it. The tax due is still a liability, but your money is growing tax deferred. For example, if both started with $100,000, the person who owns AOL would have $800,000 in AOL stock at the end of the year (with $700,000 in untaxed and undeclared capital gains). The person who short-term traded would have $800,000 but would have pay 39.6% (plus state income tax) to the extortionist (aka IRS), or would have $520,000. Even if the AOL owner sold, he would only have to pay 20% long-term capital gains and would have $660,000, or $140,000 more than the short term trader who made the same amount before taxes. All this is kind of moot because it's hindsight. However, it is another compelling reason why index funds are better than managed funds.