ASX’s timeless tax-loss selling trade suddenly under threat (opens original article in a new tab)

A market rebound in underperforming ASX stocks is threatening the traditional tax-loss selling strategy, which has been effective since 2000.

• A surprise rebound in underperforming ASX stocks is disrupting the traditional tax-loss selling strategy.
• The strategy, effective 72% of the time since 2000, faces challenges from both market rebounds and proposed capital gains tax changes.
• Investors typically sell losing stocks in June to offset capital gains through tax-loss selling.