Berk Sure Has A Way

Putting my mouth where my money is.

Consider these 5 “Loser” Stocks During Tax Loss Selling Season

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Consider these 5 “Loser” Stocks During Tax Loss Selling Season

Every year investors review their portfolios and projected taxes and many prudently decide to minimize their taxes by selling some of their losers.  In a year where the S&P’s total return is close to 30%, big losers are harder to find.  Rationally or not, stocks that lost value during the year often lose more value (or fail to rise with the market) as they are more aggressively sold off to stave off the tax man. One might argue that in such a big up year, these losers might take it even harder on the chin.

Obviously, you should not buy companies at the end of the year just because they’ve gone down. You can create a good candidate list by performing a screen for large decliners and then searching for higher quality names to research further. I’ve collected a list of potential 2014 winners from 2013’s losers. I believe these five stocks have a reasonable risk/reward profile going into 2014. While solid investments in their own right, they should receive an extra boost as the tax loss sellers are no longer pressuring the stocks

You can read the full article at Seeking Alpha:

Tax Loss Selling Potential Winners

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Written by Kevin Berk

December 23, 2013 at 11:46 AM

Posted in Picks and Pans

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