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3 Stocks That Could Get Pounded by Tax Loss Selling

Tax loss selling could make these stocks worse before they get better

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This year has been a pretty good one for most stock investors. Unfortunately for stocks that have lagged the market in 2016, ‘tis the season for tax loss selling.

The final weeks of December often provide one last kick in the gut for the year’s worst-performing stocks. Investors have one last chance to sell their losing stocks to offset the gains they’ve made on other stocks throughout the year. Traders who use tax loss selling correctly can significantly reduce their capital gains taxes for the year.

Investors are much more likely to have gains to offset in years when the market has performed well. The S&P 500 is currently on pace to close out the year up 10.6 percent. That means that there are plenty of capital gains out there in need of reduction.

Here are three popular stocks that could see heavy tax loss selling headed into the end of the year.

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Article printed from InvestorPlace Media,

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