Comments on: More testing ahead for stocks

By: dot

dot — Mon, 23 Nov 2009 19:03:40 +0000

The current 15% rate for long term capital gains expires at midnight on December 31, 2010. After that – unless it’s extended – it will go back up to the old rate of 20%. Congress doesn’t need to do anything explicit for this to happen. So you’ve got until Dec 30 of this year to buy a stock and hold on long enough to get the 15% rate. Personally, I wouldn’t base my buying decisions on this alone.

By: Bole

Bole — Sun, 22 Nov 2009 07:15:07 +0000

The S&P 500 got really close to its fifty percrent
retracement level from the 2007 highs, that’s another reason of concern.

By: cfarrar

cfarrar — Sat, 21 Nov 2009 18:12:10 +0000

I wouldn’t think that stock sales for the purpose of realizing capital gains would necessarily result in a flight to cash, since investors can immediately reinvest in the same stock, a comparable stock in the same industry, or a different sector entirely. Of course, maybe once you’ve pulled the trigger there’s a greater inclination to wait for better prices before stepping back in….

By: kelvinator

kelvinator — Sat, 21 Nov 2009 16:05:01 +0000

Interesting thought, javos. It does seem to me to be a reasonable concern that they might take cap gain taxes at least an incremental step up next year as a gesture toward holding the US debt picture and dollar together by taxing the “haves” as unemployment keeps climbing. Of course, they probably wouldn’t actually pass the tax until after the November elections

By: javos

javos — Sat, 21 Nov 2009 02:45:52 +0000

Could profits also be being taken in ‘09 for fear of higher capital gains taxes in ‘10?