Top of the Morning: Should you harvest capital gains at today’s rate?
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Our conversation focuses on considerations around tax management, namely if the capital gains tax rates go higher, does it make sense to harvest capital gains at the lower tax rate today. We also review additional tax changes being proposed that investors should be mindful of. Fe
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Top of the Morning: Raising cash - Sell or borrow?
The desk emphasizes the trade-off between selling investments to settle tax obligations and borrowing to maintain investment positions, as highlighted by the UBS commentary. This decision not only involves calculating explicit costs like loan interest but also recognizing opportunity costs linked to potential investment gains. Per the full note [source], this dilemma is especially pertinent during tax season, suggesting that market sentiment might be driven by liquidity concerns related to investment behavior. Traders should monitor how such decisions may prompt underlying shifts in risk appetite or liquidity demand across asset classes.