Everyone seems poised to watch the Dow break 20,000 and they are scared to be left behind, The market will be erratic for the next few days because individuals, mutual funds, hedge funds and institutions will be harvesting tax losses.
In order for you to take losers off on your tax returns you must realize the losses through actual sales. You can then offset the losses against your realized gains or take advantage of loss carry forwards.
Investors will either buy back into other stocks or will wait for 30 days and buy back into stocks they sold but would still like to own.
This happens every year between December 15 and January 15.
Be careful and rational/
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