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Originally Posted by KCUnited
Can someone explain, in an average CPer level lingo, year end tax strategy on investments?
I keep reading about markets being down at year end due to profit taking or other strategic sell offs and would like to better understand.
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I hear stuff about seasonal patterns, but they never seem to match reality. This link shows average returns by month, and December is actually the best month:
https://www.investopedia.com/day-tra...-trade-stocks/
I find this a little confusing because I always hear that people sell some losses in December to get the tax writeoff. So maybe the difference is that people just move money from one stock to another so it makes no difference in the overall market.
As for me, I'll ponder selling some losers toward the end of the year, but I'm usually doing that over the course of the year anyway so it's not a different pattern for me than normal.