Dump these loser stocks this fall, Wolfe Research says. It could help cut next year's tax bill
Mutual funds often start ditching their biggest losers in mid-September. Wolfe Research has a list of likely candidates that could see sharp declines.
TL;DR
- Mutual funds commonly engage in tax-loss selling during September, October, and December.
- This strategy involves selling underperforming stocks to offset realized capital gains and reduce tax distributions to shareholders.
- Wolfe Research has identified stocks that have dropped significantly, making them potential targets for tax-loss selling.
- Nike and Campbell's Company are specifically mentioned as stocks that have experienced substantial declines.
- Retail investors can also participate in tax-loss selling from mid-November to mid-December to offset capital gains or ordinary income, while avoiding wash sales.