Want to Lower Your Tax Bill? Don't Ditch Underperformers

Sometimes you have a theory that sounds like a winner, until you test it. I’ll tell you right off the bat: This is one of those times. With about six weeks left in the year, investors are now starting to think about tax optimization. It’s common practice for investors to sell off their losing positions to offset the gains from their winners, thereby lowering their tax bill. This led me to the idea that stocks that have been beaten down would face increased selling pressure in the final weeks of the year a ...