Study: Buying Stocks That Declined for Tax Reasons Could Yield Profits in New Year
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Buying worst-performing stocks at end of year could be profitable in new year, per Bank of America research.
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Tax-loss harvesting involves selling losers to offset taxes on winners; creates opportunity.
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Bank of America identified 56 "tax-loss candidates" down 10%+ YTD but with strong fundamentals.
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Institutional investors sell by Oct 31, retail investors by Dec 31, driving declines.
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Historically, buying declining tax-loss candidates outperforms market over next 3 months.