Beware of Shorting the Year-End 'Losers'
Why are the losers moving higher? Well, if we theorize that tax rates will rise, then shorts may be covering their winning shorts early while longs are holding them into January. Beware of early January, as longs in the big losers of 2012 may be taking losses then rather than now, as the tax loss may be worth more next month than this month.
In reality, the loss may be worth more in tax year 2013 rather than tax year 2012. This also means it might be dangerous to push short positions into the end of the year, even on some of these "losers" that have won big over the last month....298 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.