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Author: johnhjay One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: Re: Investment/Tax Strategy Date: 5/28/1997 5:38 PM
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On Wed, 28 May 97 02:11:00 -0600, MontanaFool wrote:
<<On Tue, 27 May 97 12:47:15 -0600, TMFTaxes wrote:
<<On Fri, 23 May 97 17:12:24 -0600, ORWAHOO wrote:

I plan on investing over a period of time (dollar cost averaging). I'll immediately put 20% into BTD stocks and perhaps short 10-20%. Then, every month or two, I'll buy a block of stock worth about $7,000. Over a 12-24 month period, I plan on eventually fully investing him in stocks.
...>>

TMF Taxes,

It may not be a tax question but why would anyone want to do this in the first place instead of immediately becomming fulling invested in stocks with all available funds. For me, 'dollar cost averaging' is something one does with future income over many years. What do I fail to understand here? Thanks.

Fooling in the Flathead
Tom Kuffel, kuffel@cyberport.net

>>I don't know about you, but, if it were my nest egg, I, too, might want to hold off committing all my investable resources at once, particularly at a moment when most measures of stock valuation indicate stocks have become very expensive by historical standards. One can cite all the historical statistics showing the market goes up 75% of the time and that no one can predict where the market is going, etc. But, when a market has risen this far and this long, longer than any bull market in history, I do not think it unreasonable for a new investor to want to "dip a toe in the water" gradually, rather than plunging in all at once. He or she has plenty of company in the present market, and I don't think it is only among the Wise.
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