For every industry there are rules and one of the rules of the stock market is to lower your taxes you can offset losses against gains. No one tries to have losses, but the reality of hedge fund managers is they get 50% right and 50% wrong (but they make a lot of money on the 50% right). This means anyone investing in the markets will have some losses (or they tell big fish stories) and for tax purposes these losses can be offset against their capital gains. Each year there is a last day because of settlement issues – it use to 5 days now can be less, but the tax rule does not change. Hopefully, you have made gains no matter what party you supported and to ensure the government does not tax you on all the gains, you can sell some stocks to offset the gains. This is a time when it is financially rewarding to dump your losers and pick up potential winners for the new year.  This year the last date is December 23.

Linking to dividend paying stocks, the investors tend to follow the rules and sometimes the rules leads to a potential gain. As the last days to sell before locking in gains happens, it can send prices down a bit and you can buy them at slightly depressed prices. After the days of tax losses, the prices go back to normal. In all likelihood you have buy a lot of shares but it is one of those freebees on the stock market which are available for all those who read and follow the rules.

There are more questions than answers, till the next time – to raising questions.