That Despised Word, 'Compromise'
We used to think the "January effect" played a key role in how investors figured out investment tactics for picking up good stock-market bargains. Theoretically, at the end of the year you could buy stocks knocked down by tax-loss selling, then take benefit as the selling abated in January.
Judging by the newfound negative turn of the averages, I am wondering if we won't see a "February effect" this time around. That is, perhaps accelerated selling will knock down stocks in December as investors endeavor to unload before any raise in capital-gains or dividend taxes -- and then again in January as we now acknowledge the unlikely nature of a deal by year-end....692 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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