Effect of LT capital gains ?

Everyone agrees short term overbought. What do you think the effect of long term capital gains selling will be on this one year anniversary? If I were holding anything with that kind of increase I would sell sell sell and get the hell out. Will there be many others thinking this way? Long FAZ at 15.27 today. ubu edit: meant to say Scammiversary

Edited by uburack, 09 March 2010 - 03:27 PM.

no one has answered you yet so i will take a stab - first, didnt they extend the time needed for LT cap gains to 18 months from 1 year - if so, it isnt in yet. If not, well, I expect it should trigger rotation more than liquidation, but probably some liquidation. regardless when the LT cap gain time point is, most pension funds and large investors need not have any impact - gains can be hedged to neutral at anytime, and at a small cost, somewhere around LIBOR, an OTC forward sale can be made for large enough positions to move the gain to any point in the future, as is or collared to allow further upside. for small guys like me, yeah I cant make such a contract, but the gains would be of greater interest than the tax liability, and I usually have some losers to offset some gains.