dreemer:

Capital Gains distributions are probably a good thing in UP years, it may represent the manager taking profits and putting that money into better valued stocks. I see nothing good about realizing Capital Gains in DOWN years. I think that almost always means the manager is dealing with meeting redemptions, and there is nothing worse than seeing your account balances shrink and still having to pay Capital Gains taxes. Even in a tax deferred account, I don't really see any positives.

-dale 

This makes sense to me.

Well, I have to DisAgree.. since it really All Depends on your Tax Bracket..

and the Old Argument of Divs vs CG's has been going on for Decades..

or is  it  like being a "Penny Wise and a Dollar Foolish" ..

or your in a Lower Tax bracket?

Or you have Far more tha enough an Only need the Div's and think those investments are far Safer ?

Being in a 28% tax bracket...

1. I'd rather have a 20% CG and pay the 15% Txes on it.. than pay higher taxes on Divs..( ordinary Income Rate at 28% ) and most Divs I've gotten are about 25% of that vs CG's.

2. @ Ave 5% Divs and pay the ave 28% taxes vs a 10% CG and 15% Taxes? Is a No Brainer to me.(not to mention CG's far out perform Div's in the Investments I'm in.)

3. Apparently, you probably have not had this benefit over the past yrs..

4 .And probably should only be investing into Investments that only pay Divs. but also Readjust &  settle for making alot less on your $ as a result.

eg; Making 80% from CGMFX last yr? Lots of Taxes, but Also Lots of Net Profits!

and if wants even alittle more Taxes  this yr.  from selling more stocks? and does Loose -10% for 08'?  No problembo..