The beginning of a new year is a time for investors to rebalance their portfolio. This can have a bullish effect on stocks as it did this year. Why does this happen? Here are a few thoughts:
- Investors who engage in a tax loss harvesting strategy at the end of the year look for ways to redeploy capital.
- Investors who receive year-end bonuses may put money into the market.
- January is also a month where some fund managers rebalance their portfolios by dropping losers and buying the prior year’s outperformers.
That last point is a key one for investors. It’s always important to look at the market for what it is instead of looking to confirm the market conditions you want. Some investors hold onto stocks thinking that a change in the date on a calendar will change a company’s fundamentals.
They also frequently hang on to theories that may have merit but are not in line with the way the market is moving.
In this special presentation, we highlight seven stocks that have catalysts that can help your portfolio build off the market’s strong start.
Click the "Continue to Slide #1" button to view the first company.