Tuesday, December 5, 2006

December stock market comments

My prediction is that the market will continue rising until the end of December since people don't want to pay capital gains taxes in 2006 but will delay it until 2007.

Often there can be a rash of selling in January to lock in those profits. But not always.

Another aspect is that there may be a big sell-off in December of losing stocks so the losses can be taken in 2006, so these losers often rally back in January. However, there is some reason that they are losers, so any January investments in these losers should probably be short-term investments.

But keep in mind, there is no sure thing when you play the market. It's always a summer market--some er up and some er down.

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