Juniors may rebound once tax loss selling subsides It’s tax loss season and that means accepting painful losses for some investors while posing opportunities for others.
While the S&P/TSX composite index is up about 2% year-to-date and down more than 4.5% since peaking in February 2012, the TSX Venture Index has declined more than 25% from its highs that month.
This suggests there are plenty of opportunities for investors to sell losing positions to minimize tax exposure and potentially recoup capital gains taxes paid in previous years, according to Nicholas Campbell at Canaccord Genuity.
“For investors looking for a reprieve from recent selling pressure, tax loss selling could prolong the discomfort,” the analyst said.
However, he also noted that investors with cash on hand could use this opportunity to buy shares at discounted valuations.
Canadian investors have until Dec. 24 to record a capital gain or loss for the 2012 tax year on their domestic stocks. They have until Dec. 26 to do so for U.S. equities. Dec. 31 is the last day to record a capital gain or loss for U.S. investors for this tax year.
https://business.financialpost.com/2012/11/28/junior-miners-may-rebound-once-tax-loss-selling-subsides/?utm_source=dlvr.it&utm_medium=twitter