Originally Posted by SpamSandwich
Both awful prospects, bad for the economy, bad for investors and bad for business. Ugh. Might have to sell off all my holdings and move them into tax-free municipal bonds and settle for lousy returns for at least 4 years.
A lot of what to do depends on what we think Apple, the company, will do over that time, rather that Apple, part of the economy, will do.
If we don't sell the stock, we haven't lost anything.
If the stock rises above what the loss would be due to the increase in taxes over the current 15%, then we've still made a gain.
If Apple rises considerably more than the 8% tax-free bonds, then we are well ahead.
We could sell the Apple before this becomes apparent, at 15%, and then buy it back again a month later ( I forget the minimum time allowed). That way we pull in our profits at the lower rate, and allow it to accumulate again.
If you bought Apple back as soon as allowed, at say the same price, including fees, etc (for the sake of simplicity of argument) it would only have to go up 11.12% over the course of the next 12 months to be even with your bonds at 8% if you sold at a tax rate of 28%.
If you have Apple in a tax free IRA or other tax free account now, then none of this should bother you. About 10% of our Apple is in our IRA's.