Tuesday, December 29, 2009

selling a dog, not literally

Aside form my only half-joking comment in the previous post about selling tanker stocks, I have been mulling over what I should do with a serious dog of a stock that has not taken part in the general market recovery. (Note: I have doubts about a serious economic recovery actually occurring soon and actually have doubts how much further the market recovery will go.) While I probably should not have waited so long to try and figure this out, I have decided to sit and wait and just hold the stock for now. While that is hardly the sexiest decision, it's probably the best one I can make. Looking at the general valuation, it probably isn't going any lower, the dividend is better than any savings or checking account interest rate from a bank I can easily access, and my tax exposure is probably low.

That last point is the most important. I'm not entirely sure how my taxes are going to work out this year, since I am living abroad and have mixed income from the first couple months in the States. Nonetheless, whatever deduction I might get from a sale this year is probably not worthwhile given my expected marginal tax rate because of what I made in the US and what I expect taxes to be here. Hence my non-sale.

1 comment:

Dr. Tax said...

Is it long or short term capital gains (or losses)? Will the situation be better next year? Are you placing your money into a Swiss bank account? Things to consider...