We only have a few days left until Christmas. We know what that means. If you said, “I bet there are a lot of people scurrying around for last-minute holiday shopping,” you would, of course, be correct. Another answer would be that we have only six trading days left until we ring in the end of 2013 and kick off 2014. Funny how it seems like another year flew by, even though I am sure that you, just like me, felt at times that some days would never end.
Watch out for the wash. While I plan to wax on 2013, which soon will be in the rear-view mirror, I want to remind you, just as I have reminded subscribers to my investment newsletter PowerTrend Profits, not to lose sight of cleaning up trades before the end of the year. That situation means reviewing all of your positions and deciding how to best manage your tax profile — remember, short-term losses match with short-term gains, while long-term gains go with long-term losses. Also remember not to get too cute by selling a position to book the loss only to buy it back in a few days. Selling any security for a loss for tax purposes, and within 30 days before or after purchasing the same security is known as a wash sale, and the Internal Revenue Service (IRS) disallows the claimed loss. You may want to think twice before exiting certain securities if you’re going to position your portfolio to minimize your tax position.
It’s the economy, stupid. Most, if not all of us, are familiar with that phrase – “It’s the economy, stupid” — which is a slight variation on the phrase “The economy, stupid” that James Carville coined as a campaign strategist of Bill Clinton’s 1992 presidential campaign. Well, the phrase and its meaning are as true today as they were back then.
Read more about how the economy will be fine in 2014 at Eagle Daily Investor.