Gold and gold stocks have been on a tear lately.
I predicted this would happen. In the December 16 Growth Stock Wire, I highlighted a situation we’ve seen more than once over the past few years.
It’s the arrival of the “tax-loss selling” season…
[ad#Google Adsense 336×280-IA]Every year, U.S. and Canadian investors are allowed to sell losing stock positions in their portfolios to offset their capital-gains-tax liabilities and reduce their overall tax bills.
Of course, “tax-loss selling” isn’t limited to just gold stocks.
Investors can apply losses realized on any stocks.
But because gold stocks have been stuck in a downtrend over the past few years, they’ve benefited consistently from these selloffs.
Investors could have booked quick, easy profits by buying gold stocks in December in four of the past five years…
You can see in the above chart that gold stocks – as measured by the Market Vectors Gold Miners Fund (GDX) – rose starting in December every year over the last five years, except for December 2012.
This current winter is no exception. GDX is up a huge 32% since my essay in mid-December.
I listed five junior gold companies that I expected to benefit from the tax-loss selling season. Here’s how they have performed…
On average, these companies are up 16% in eight weeks – or 105% on an annualized basis. It’s even more impressive when you consider that the benchmark S&P 500 Index is down more than 10% over the same time – its biggest fall in five years.
If you entered that trade, we’ve reached the projected upside in less than two months. That’s great performance. Consider taking profits today.
Good investing,
Matt Badiali
Sponsored Link: In the Stansberry Resource Report, Matt rates several gold stocks a “buy” today. And if the recent price action in gold kicks off a new bull market, these companies could explode higher. You can gain access to the names of these companies and all of Matt’s premium research with a 100% risk-free trial subscription to the Stansberry Resource Report. Get Started here.
Source: Growth Stock Wire