CIBC: Tax-Loss Selling Creates January Mean Reversion Opportunity In Select Stocks

Tax-loss selling to create January buy opportunity? Yes, some say.

If a quantitative analyst were to take a look at stocks that were caught in tax loss selling, the trend reoccurrence is identifiable. A CIBC quantitative research report out December 10 runs stock through its mathematical filter to determine those issues which could experience selling as 2016 ends and mean reversion in January of 2017.

Shares in CIBC’s tax-loss selling category are up by 8-10% in the first 60 days of the year

Tax loss candidates are those that have lost money for an investor over the course of the year. The idea...