RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:new trend?Hi Casino,
I read this tax loss factor as being bigger than anything ever conceived in the financial world.It comes back every day.
It is way overdone as a general rule.
Investors dont usually dump stocks that can turnaround.
Most stocks sold for tax reasons are the real dogs with no hope. Furthermore tax loss is really all year although for individuals it can bunch up end of year but it is just a blip.
Here is why
To claim the loss you must have a capital gain during the same year otherwise you wait another year. That tax credit is worth say 15-25% of the price of the stock depending on the tax bracket and that means if you are an individual, if you have a capital gains and if you want to bet that 15-25% in taxes in 3 - 4 months is better than waiting for a turnaround go ahead and sell. However when millions of shares are traded avery day on one stock the fact a basher sells 3000 for 'tax loss' is not a driving force , just a blip . And dont forget a lot of people sell their other dogs and with the cash buy undervalued stocks for replacement in their portfolio and that would include ELD and yes at the end of the year at the same time as others are selling it. Its probably a washout and could actually be good for ELD with more buyers replacing their dogs with ELD than sellers not convinced ELD is a finished story,and especially close to an arbitration decision.