I came across this story and thought it is a worthwhile read this time of year. I don’t necessarily have a strong view that the ASX needs to have a terrible June on the basis of this theory but I always believe it can be a head wind. The first few days have not looked strong either.
I agree with the point made that when you are looking to perhaps crystalize some dogs in the portfolio to offset losses against gains, you need to be thinking about this in May or earlier.
I also fully agree, and I have noticed myself over the years that tax loss selling tends to peak about mid June or maybe the third week. Stocks don’t suffer the worst of the tax loss selling in the last week or last few days as some may suspect. Every year I pay particular attention to stocks that are down a lot and could be the targets of tax loss selling with the mindset the opportunity to buy could be greatest during the middle of June. It can be particular rewarding if you can find some companies trading on low volume that you like that are clearly showing signs of tax loss selling.
The article may be useful to some also because it lists a lot of the main stocks and the losses that investors could be facing, therefore some likely targets. Here is the link.