Currently the market is weak, rates continue to trend higher and the economy is questionable. If you entered the market for a quick buck, it is more likely that you are stuck in an endurance test, at this time.
If you are into the US market then the tax loss season is around, where many growth and microcap have significant effect due to this. I do not generally take tax losses on growth stocks where I have a lot of long-term conviction, simply because there is a reasonable chance that the stock could soar again into the end of the year, which is, on average, a seasonally strong time for stocks, and I do not want to outsmart myself out of a good investment just to get a short-term tax benefit, but if the loss is substantial enough, it can still be worthwhile.
And some optimism to end with…Looking into the forward earning statements from S&P500;
Potentially even more surprising as record profits and profit margins improving. We have heard nonstop for the past year? that Profit margins are too high and must fall. Well, since March we have seen forward 12-month profit margins increase. If both profits and profit margins are increasing next year, that should be a nice tailwind for equities. Lets hope these kind of positive data keeps our future alive going into 2024.
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