I made around 18% earlier this year on Marvel. Then I bought Cendant, which is now down 10% from what I paid for it. The 18% represents about $1,800 in cash.
Would it be worth selling now at a loss, then buying again immediately? If I did this right now, it would just about halve my stock profits "on paper" for the year. I would still own the same amount of Cendant stock tomorrow, but I would pay less in taxes next April.
Is there any downside to what I am proposing? Doing so would probably knock $250 off our tax bill next Spring, but I'm not sure if it would have any negative consequences that I might be missing.
Re: "Is there any downside to what I am proposing? Doing so would probably knock $250 off our tax bill next Spring, but I'm not sure if it would have any negative consequences that I might be missing."
You will gain you nothing and will lose you a few bucks in commissions.
If you don't believe me try googling for "Wash Rule"
I agree with Olds - you can't buy quick enough and you won't get the benefit of the loss. Just hold onto the stock and if everything works right you will have appreciated above your cost in a few months.
> I sold out of Marvel too..and then made the same >trade..what price did you get for MVL? Are you >considering going back in?
I don't remember the actual numbers. All I can remember was that it had started going back down, and historically I saw that it had slid even after blockbuster movie openings, so I sold, and still got an 18% gain.
Yes, I am considering going back into Marvel, but not until next year sometime, if the stock price drops a bit further.
I think I'll hold on to Cendant (actually, its 'daughter' companies) through at least early next year, to see what happens.