Will Tax Loss Harvesting Cause Year End Volatility?

Will Tax Loss Harvesting Cause Year End Volatility?

November 27, 2023

While we like what we see underneath the surface, today's video shares one concern that we have as the year end approaches: tax loss harvesting.

Many in the industry still advocate for "tax loss harvesting". While we think the practice is a bit silly (since we do not want to just let losses get away from us), many in the industry still practice the habit. As a result, given how the majority of stocks are negative year-to-date, it should not be a surprise if we see a pickup in selling in the coming days and weeks just because some are trying to harvest the loss for tax purposes.

However, once that is done, we would not be surprised to see a rally.
#activemanagement #dontpredictprepare #stockmarket #taxlossharvesting #taxes #sp500

This information is intended to be educational. Hicks & Associates Wealth Management does not provide tax or legal advice. You should consult with a qualified tax, legal or financial professional before making any decisions. Investment advisory services are offered through Hicks & Associates Wealth Management, LLC (“Hicks & Associates”), an investment adviser registered with the Securities and Exchange Commission. Registration as an investment adviser does not imply a certain level of skill or training. More information about Hicks & Associates can be found in Form ADV Part 2 or Form CRS which is available on our website. Past performance is no guarantee of future returns. Hicks & Associates reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. The visuals shown are for illustrative purposes only and do not guarantee success or certain level of performance. This material contains projections, forecasts, estimates, beliefs and similar information (“forward looking information”). Forward looking information is subject to inherent uncertainties and qualifications and is based on numerous assumptions, in each case whether or not identified herein. This information may be taken, in part, from external sources. We believe these external sources to be reliable, but no warranty is made as to accuracy. This material is not financial advice or an offer to sell any product. There is no guarantee of the future performance of any Hicks & Associates portfolio. The investment strategies discussed may not be suitable for all investors. Before investing, consider your investment objectives and Hicks & Associates charges and expenses. All investment strategies have the potential for profit or loss.