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Chuck Jaffe's Annual 'Lump Of Coal Awards' Part II: Congratulations John Hussman
Reply to @VintageFreak: Ha! I agree. That may be best runner-up...along with its managers for not explaining what went wrong with their risk parity strategy and what is to be learned from the June nose dive.
Regarding the Vanguard MMF cap gains distribution:
It was a short term gain, so from a tax purpose, it's reported along with the income dividends. No separate number, no tax issue whatsoever. This is a case not of Chuck making a mountain out of a mole hill, but of his seeing ghosts when there's nothing there.
In contrast, multiple tax free Fidelity MMFs paid long term cap gains dividends in 2007. That did create additional reporting issues, not to mention paying taxes on what was supposed to be a tax-free investment.
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It was a short term gain, so from a tax purpose, it's reported along with the income dividends. No separate number, no tax issue whatsoever. This is a case not of Chuck making a mountain out of a mole hill, but of his seeing ghosts when there's nothing there.
In contrast, multiple tax free Fidelity MMFs paid long term cap gains dividends in 2007. That did create additional reporting issues, not to mention paying taxes on what was supposed to be a tax-free investment.