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- Path: sparky!uunet!ogicse!network.ucsd.edu!mvb.saic.com!unogate!stgprao
- From: stgprao@st.unocal.COM (Richard Ottolini)
- Newsgroups: misc.invest
- Subject: Re: December wash sale effect
- Message-ID: <1992Nov18.162951.24724@unocal.com>
- Date: 18 Nov 92 16:29:51 GMT
- Article-I.D.: unocal.1992Nov18.162951.24724
- References: <1992Nov17.153144.6729@bostech.com> <1992Nov18.034808.7494@Happy-Man.com>
- Sender: news@unocal.com (Unocal USENET News)
- Distribution: usa
- Organization: Unocal Corporation
- Lines: 22
-
- In article <1992Nov18.034808.7494@Happy-Man.com> Irving_Wolfe@Happy-Man.com writes:
- >In <1992Nov17.153144.6729@bostech.com> fardad@bostech.com (Fardad Farahmand) writes:
- >
- >>Is it true that historically when price of a given stock falls
- >>dramatically ... that the price is
- >>likely to fall during December due to selling for tax benefits?
- >
- >It's true that the price in the last days of the year is likely to
- >be lower, due to tax-motivated selling, than it would otherwise be.
- >Some years ago, the price-depression was most evident in the last
- >few days of the year, but in the past few years, it seems that more
- >of this selling took place early, leading to some recovery in the
- >last week (or before).
-
- Agreed. I've been in mutuals the past five years. 2 and 3 years ago I
- noticed a January rise that I thought was due to above mentioned tax
- purposes. Last I timed some buying in December on the day my fund family
- went dividend and caught the earlier than usual rise of about 10%.
- It is kind of tricky with my fund family. They usually declare about
- two weeks before issuing the dividends. The dates are not the same from
- year to year nor from fund to fund. If I am lucky, I'll see the "x" in
- the paper, but it is better to call to be sure.
-