Disclaimer

Do your homework before you invest. I am not a professional. I just enjoy investing. I am often wrong.

Friday, December 6, 2013

Almost time for tax loss

I was reminded today about tax loss selling this year.  I am still getting the hang of this investing thing.  A good rule of thumb - at the same time you are buying Christmas presents, buy some stocks that have lost value during the year.  The year's poor performing stocks are likely to be undervalued in December, because investors sell them to "cancel out" their capital gains to avoid paying taxes.

This year the tax loss opportunity is greater than usual, because the market has performed well and because the capital gains tax rate is higher than it has been in many years, so investors have more tax liability that they want to get rid of by taking losses.

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