The FRED Report

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The Fred Report - Special Research - Tax Loss Bounce Review

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author/source: Fred Meissner, CMT

The following report shows the results of the two Tax Loss Bounce lists we have published since the start of the FRED Report 3 years ago. The basic idea of the Tax Loss Bounce list is to take advantage of the January Effect – a market phenomenon that occurs because people sell stocks with losses at yearend, that then rally back sharply in the new year.

Over time, we have found that the best time to buy such stocks is in the last two weeks of December. There are two ways to do this, which explains some of the difference in each year’s list. The first is to simply buy the stocks in the last two weeks of the year. This is what we did with the 2011 list. The second is to stagger the buys: buying ½ positions in the second week of December, and then buying the other half the last week of December. We suggested this for the 2012 list, as we thought the market could decline into the end of 2012 and then rally. The resulting report shows both of these lists, and is tabulated accordingly.

We published this list in 2011 and it was quite short. However it also was popular enough that the second list was broader and had more names. These stocks are intended for advisors to use in their own accounts, or for aggressive clients. They are designed to be trading vehicles and not long-term attractive buys for a portfolio. However, we will continue to publish the list, with these caveats, for subscribers enjoyment.

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DISCLAIMER: 
Fred Meissner is primarily responsible for the research in this report and certifies that: (1) all of the views expressed in this research accurately reflect his personal views about any and all of the subject securities or issuers; and (2) no part of his compensation was, is, or will be directly or indirectly related to the specific recommendations or view expressed him in this research.
 
This report is for your information only and is not an offer to sell, or a solicitation of an offer to buy, the securities or instruments named or described in this report.  Interested parties are advised to contact the entity with which they deal, or the entity that provided this report to them, if they desire further information.  The information in this report has been obtained or derived from sources believed by Fredco Holdings, Inc. to be reliable, but Fredco Holdings, Inc. does not represent that this information is accurate or complete.  Any opinions or estimates contained in this report represent the judgment of Fredco Holdings, Inc.  at this time and are subject to change without notice.  Fredco Holdings, Inc.  or its employees, officers, directors, principals, agents, affiliates or adviser may from time to time provide advice with respect to, acquire, short sell, hold or sell a position in, the securities or instruments named or described in this report.
 
Fredco Holdings, Inc. does not have investment banking relationships with any of the companies mentioned in this report and does not conduct investment banking business, in general.  Fredco Holdings, Inc.  and its employees do not receive compensation of any kind from any of the companies in this report.  Fredco Holdings, Inc. , its directors,  officers, principals, agents, advisers, affiliates and employees may maintain a financial position in the securities mentioned in this report, provided however that no buying or selling  activity will be taken with respect to a security referenced in a report by such parties within three days of such report’s publication.
 
The information contained herein was prepared by Fredco Holdings, Inc., which is solely responsible for the contents of this report.
 
Copyright 2010-2019 Fredco Holdings, Inc..  All rights reserved. This report is a publication of Fredco Holdings, Inc.  located at 4514 Chamblee-Dunwoody Rd, Suite 112, Dunwoody, GA 30338. 

 

 

 

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