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Should you buy stocks before the new year? Here's what history says.

The article from USA Today, published on December 9, 2024, discusses the potential benefits of buying stocks before the new year. It highlights several reasons why investors might consider this strategy. Firstly, the end of the year often sees a phenomenon known as the "Santa Claus Rally," where stock prices tend to rise due to holiday optimism, tax considerations, and portfolio window dressing by fund managers. Secondly, the article points out that many companies release their earnings forecasts for the upcoming year, which can provide insights into future performance, potentially driving stock prices up if the outlook is positive. Additionally, there's mention of the potential for tax-loss harvesting, where investors sell losing stocks to offset capital gains, which could lead to a buying opportunity in undervalued stocks. The piece also advises caution, noting that while historical trends can be encouraging, they are not guarantees, and investors should consider their risk tolerance and investment horizon. Lastly, it suggests looking into sectors expected to perform well in the new year, such as technology, renewable energy, and healthcare, due to ongoing trends and government policies.

Read the Full USA Today Article at:
[ https://www.usatoday.com/story/money/2024/12/09/buy-stocks-before-new-year/76757912007/ ]