This Tax Strategy Is Crucial During a Volatile Market
If there's a single word that could describe not just the stock market in 2020, but 2020 in general, it's "volatile." In March, stocks plunged when news of the COVID-19 pandemic broke, and while they subsequently staged a comeback, September has already gotten off to a rocky start with a massive sell-off that hit the tech sector particularly hard.
As an investor, you're probably aware that it's important to stay calm when stocks bounce around. It's generally a good idea to avoid selling off stocks the moment their values decline because that's how you lock in permanent losses.
But in some cases, unloading a losing stock pays. If there's a specific investment in your portfolio that's underperforming, selling it at a loss could work to your advantage.
Source Fool.com
