Forbes - 5 Stocks Poised To Bounce

Fellow Investor,

Kicking someone while they’re down is unsportsmanlike. But it happens every year in the stock market.

In November and December, investors often pummel the stocks that have declined in the first ten months of the year. Why? For tax reasons. Investors sell their losers to establish tax losses, which are useful in offsetting capital gains and hence lowering the tax burden.

This effect, called tax loss selling, will happen even though tax rates may change under President-elect Joe Biden. The taxes you pay in April 2021 for tax year 2020 are already set in stone, and if you can lower them, you probably will.

And that, my fellow investor, may be good news for you. Because tax loss selling may pound some stocks down below their true value, this time of the year opens up a lot of opportunities if you know where to look.

I’m pleased to share with you what my research has uncovered. Here are five stocks that I believe are timely to buy in the next month or so, with prospects for a bounce in January 2021 and beyond.
 

Sincerely,

John Dorfman
Contributor
Forbes