An Early sell in May and Walk Away?

[william the wie]

I was wondering what theories are drifting around out there to account for the lack of adding to tax efficient accounts?

 

[Pavel Svinchnik]

Maybe because tax rates have been reduced, there is less incentive to invest in tax efficient accounts. I do most of my trading in a self-managed IRA to avoid tax issues until I have to take the Required Minimum Distribution each year. In the taxable account, I sell a losing investment each year to keep the net profit and hence tax bite down.

 

[william the wie]

Maybe because tax rates have been reduced, there is less incentive to invest in tax efficient accounts. I do most of my trading in a self-managed IRA to avoid tax issues until I have to take the Required Minimum Distribution each year. In the taxable account, I sell a losing investment each year to keep the net profit and hence tax bite down.

I expect you are right.

The difficulty is that the usual methods of valuation and investment no longer work. The covered calls I write are dropping like a rock. The people who grew up in an earnings driven environment are suddenly sheep headed for slaughter. Capital gains and monster growth are now being driving by dividend yield growth not earnings growth,