Tax loss season strategies
It's that time of the year again. If your portfolio is like mine, 2007 was a very volatile year with lots of ups and downs. A few hits mixed with a few misses. If all your stock picks were hits, congratulations - you seem to know how to beat the market well.
For the rest of us with mere mortal portfolios, what do you do with your misses. If you believe that the fundamentals of the underperforming stock are still sound, do you hold the stock or do you sell it in the hopes of escaping to greener pastures? It's a tough call but for me if I believe a stock is a long term hold and the stock was beat up over the course of the year due to a temporary blip in bad earnings, I will generally hold on to the stock.
However, if the stock's fundamentals has changed so much from the time that I bought it until now, I would definitely consider selling the stock.
Stocks that I bought for a quick flip (short term holds) that didn't perform as I expected, I usually sell to offset my capital gains.
For example, despite the credit crunch and subprime nonsense, I am still very bullish on banks and have not sold any of my banking stocks. I mean, why would you buy low and sell low? That's silly. One bank stock I personally like is BNS (Bank of Nova Scotia). In my next post, I will write more about why I like this stock.
So stay tuned and subscribe to my feed so that you will get timely updates when I post new entries.
For the rest of us with mere mortal portfolios, what do you do with your misses. If you believe that the fundamentals of the underperforming stock are still sound, do you hold the stock or do you sell it in the hopes of escaping to greener pastures? It's a tough call but for me if I believe a stock is a long term hold and the stock was beat up over the course of the year due to a temporary blip in bad earnings, I will generally hold on to the stock.
However, if the stock's fundamentals has changed so much from the time that I bought it until now, I would definitely consider selling the stock.
Stocks that I bought for a quick flip (short term holds) that didn't perform as I expected, I usually sell to offset my capital gains.
For example, despite the credit crunch and subprime nonsense, I am still very bullish on banks and have not sold any of my banking stocks. I mean, why would you buy low and sell low? That's silly. One bank stock I personally like is BNS (Bank of Nova Scotia). In my next post, I will write more about why I like this stock.
So stay tuned and subscribe to my feed so that you will get timely updates when I post new entries.
Comments
so why do you like BNS?
what about Citigroup at $30?
any value?