CAPITAL GAIN=MARKET PAIN?

THE RATE'S LOWER, BUT WALL STREET HASN'T NOTICED

Hooray, the long-term capital-gains tax rate has been cut. That's good news--if you know how to use it. The last two times the rate fell, in 1978 and 1981, some distinct patterns emerged: the stock market sank but ultimately staged a powerful recovery. There was also a noticeable flow into the stocks of small companies. The problem is that in this so-called new-era economy, historical benchmarks have been about as useful as an abacus in Silicon Valley. To borrow a phrase from the new-era crowd, it's different this time.

The tax bill that President Clinton signed into law last week lowers...

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