Posted by: beautifool December 23, 2013
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I bought these IAG shares for the purpose of Tax selling and January effect. I've read many times about stocks being sold in the month of December for tax purposes. This stock fit the criteria with it going though 52 week low and book value is much more than what the market is pricing. I hope this is one of the stocks that will make the assumption right about tax selling. And I plan to sell it in January or Feb. It if continues to go down, I'll add few more. Here's something that helped me to be really encouraged. And only bought 300 instead of 3000. Pretty close for "key dates" to expire.
However on a positive note, Credit Suisse adds that once this downward pressure subsides, these stocks are likely to experience a price reversal. Year-to-date, the S&P/TSX 60 Index is up 7.8%, followed closely by the S&P/TSX Composite Index, which has increased 7.4%. Led by financials, non-resource cyclicals (i.e., financials (ex-REITs), industrials, consumer discretionary and technology) exhibited strong market leadership and the dividend yield arbitrage with defensives (i.e., pipelines, utilities, telecoms and REITs) has paid off handsomely this year.
Meantime, resource focused sub-indices posted double digit losses this year - S&P/TSX Global Gold and S&P/TSX Capped Materials. Conversely, the S&P/TSX Venture Index posted a significant 23.4% decline. Year-to-date, the S&P/TSX Composite Index is weighted heavily towards winners, with 131 gainers, 105 decliners and one unchanged. At this time last year, the winners also outnumbered the losers, with 145 gainers, 103 decliners, and one unchanged. The larger-cap S&P/TSX 60 Index is also weighted towards winners, with 41 gainers, 18 decliners and one unchanged. At this time last year, the winners also outnumbered the losers, with 36 gainers, 23 decliners, and one unchanged. The worst- and best-performing equities are the typically ones to monitor.
Key dates for 2013:
Tuesday, December 24, 2013 is the last day for tax-loss selling for Canadian taxpayers selling Canadian equities. There are virtually no alternatives if you leave trades beyond this date.
Thursday, December 26, 2013 is the last day for tax-loss selling of U.S. equities for Canadian taxpayers. Once again there are no alternatives should you wait beyond this date.
Tuesday, December 31, 2013 is the last day for tax-loss selling for U.S. taxpayers for Canadian and U.S. securities."
"Tis The Tax Loss Selling Season. In general, tax-loss selling tends to be concentrated at the end of November and the first two weeks of December, with some investors going back into the market after this to take advantage of reduced equity values in the second half of December. Note, investors should be cautious about selling early in order to exploit market weakness later on in the year, as that scenario may not always play out as expected. Money managers often clean up their portfolio holdings before the end of the tax year. Credit Suisse highlights that about 50% of U.S. mutual funds have a fiscal year end between October and December. They tend to sell stocks with large losses to avoid reporting them in their year-end report. This window dressing causes downward pressure on stocks that have already been seriously beat up and are trading near their 52-week lows towards the end of the year.
However on a positive note, Credit Suisse adds that once this downward pressure subsides, these stocks are likely to experience a price reversal. Year-to-date, the S&P/TSX 60 Index is up 7.8%, followed closely by the S&P/TSX Composite Index, which has increased 7.4%. Led by financials, non-resource cyclicals (i.e., financials (ex-REITs), industrials, consumer discretionary and technology) exhibited strong market leadership and the dividend yield arbitrage with defensives (i.e., pipelines, utilities, telecoms and REITs) has paid off handsomely this year.
Meantime, resource focused sub-indices posted double digit losses this year - S&P/TSX Global Gold and S&P/TSX Capped Materials. Conversely, the S&P/TSX Venture Index posted a significant 23.4% decline. Year-to-date, the S&P/TSX Composite Index is weighted heavily towards winners, with 131 gainers, 105 decliners and one unchanged. At this time last year, the winners also outnumbered the losers, with 145 gainers, 103 decliners, and one unchanged. The larger-cap S&P/TSX 60 Index is also weighted towards winners, with 41 gainers, 18 decliners and one unchanged. At this time last year, the winners also outnumbered the losers, with 36 gainers, 23 decliners, and one unchanged. The worst- and best-performing equities are the typically ones to monitor.
Key dates for 2013:
Tuesday, December 24, 2013 is the last day for tax-loss selling for Canadian taxpayers selling Canadian equities. There are virtually no alternatives if you leave trades beyond this date.
Thursday, December 26, 2013 is the last day for tax-loss selling of U.S. equities for Canadian taxpayers. Once again there are no alternatives should you wait beyond this date.
Tuesday, December 31, 2013 is the last day for tax-loss selling for U.S. taxpayers for Canadian and U.S. securities."