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I took a heavy loss on stock X.
I will sell stocks y and z from my MDP at an equally heavy gain offset said gain. I'll then immediately repurchase the same MDP stocks.
Is this a short-sighted approach?

I think so, for the reasons Phil stated, IF, as you say, you just want to repurchase the same stocks.

I'd add: If, on the other hand, you want to use this opportunity to sell the appreciated positions with no current tax, and use the additional cash from all the sales, to reinvest and have a more diversified portfolio, that might make a lot more sense.

But to repurchase the same stocks? It's not that exciting a proposition.

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