Q: Do you think there will be a dip first week of January when people take some profits and don't have to pay the taxes until 2025? Should one sell some stock if they're in registered accounts next week and take advantage of this?
Thanks
Thanks
5i Research Answer:
For much of the year, outside of mega-caps, it was a bit of a sideways market so there was likely plenty of time and opportunities for investors to manage their tax positions through the year and with so much cash leaving the market this past year, we might not expect a material tax-related move in the new-year. Of course, these are short time periods and anything can happen. We would be reluctant to try to time a move like this because an investor first needs to get the sell decision right and then also needs to get the buy decision right after that, which can be tough in such short periods.