Will Tax Season Actually Cause a Rotation Away From Stocks This Year?
This tax season could be a catalyst for many individual investors to rethink the amount of money they have in stocks vs. getting 5% in guaranteed/risk-free assets.....Also, the 200-DMA on the S&P 500 is also where the trend-line from the all-time highs come in, so a break below it will be doubly negative.
- With risk free instruments yielding 5%, will investors avoid putting their tax refunds into the stock market this year?
- While doing their taxes (and thus thinking about their finances) be a catalyst for individual investors to think about shifting some of their stock holdings to these high yielding risk-free assets?
- The 200-day moving average on the S&P 500 is ALSO where its 14-month trend-line comes-in. Thus, a break below that line wil be quite negative for a few reasons.