S&P 500
probably down up 21% this year, but the tax law could cause some underperforming stocks to rebound by the end of 2022, according to a report from Bank of America.
Loss of tax collection has become a more popular strategy since Tax Reform Law In 1986, BofA said in its report, “This Year’s Big Hit: Tax Loss”. Investors often use this method sell their loss-making investments to reduce the taxable capital gains they gain by selling other stocks. For most mutual funds, the sale deadline is October 31, while retail investors have a December 31 deadline. Tax loss candidates, or TLC, are defined as S&P 500 shares fell 10% or more from January 1 to October 31, the report said.
