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Can somone please advise me on whether this is a foolish strategy?

I currently have 3 of my 12 stocks down about a total of $8000. I am in the 40% tax bracket (CA State & Federal). If I sell these 3 stocks before the end of the year I can save about $3200 right away. Then buy them back after 31 days to avoid the Wash sale rules. My thinking is that the only risk is that the stocks move up 40% or more during the 31 days. Is this foolish thinking? I trade online so the cost of the transactions are very low.

Generally I agree with the long term holding strategy but with $3000 + savings right away it seems to make sense.


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