Volatility: It's what's for dinner
Overall, instruments such as the VXX were a sucker's bet in 2012. Savvy investors know that you're not supposed to hold VXX for an extended period of time.
However, for those not-so-savvy investors out there, holding VXX for all of 2012 would have resulted in an 80% loss.
The January Effect and Taxmageddon
Investors are accustomed to a general increase in stock prices during the month of January. This rally is generally attributed to an increase in buying, which follows the drop in price that typically happens in December when investors, seeking to create tax losses to offset capital gains, prompt a sell-off.
2012 had a great January effect. In spite of that, 2013 has a lot of uncertainty surrounding Taxmageddon.
Taxmageddon is a one-year $494 billion tax increase slated to strike the economy on January 1, 2013, if a deal is not made
Here we are on December 27th and there is no deal in sight as the deadline nears.
Ask yourself this - will there be a January effect in 2013 if Americans incur a nearly $500 Billion tax increase?
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Can Trumponomics Fix What's Broken? | ZeroHedge
- UN Agrees To Stop Reporting Iraqi Casualties After Military Complains | ZeroHedge
- Bullion Banking: Part I - The Mechanics and the Players | ZeroHedge
- The Diference Between The Greatest And… Everyone Else | Altucher Confidential
- Is the Student Loan Bubble Getting Ready to Pop? | Financial Sense
- US Productivity Suffers First Two-Quarter Annual Decline Since 1993 | ZeroHedge
- Students Demand "Sanctuary" From Immigration Laws, Student Loan Debt, And Finals | ZeroHedge
The most relevant financial news and articles from the Internets
- The world's largest food company is going after sugar — but it's missing the biggest... | Business Insider
- Obama delivers passionate defense of his counterterrorism strategy in... | Business Insider
- Jack Dorsey says there's 'no time frame' for... | Business Insider
- Hybrid robo-advisors will manage 10% of all... | Business Insider
- 'I'm going to negotiate prices': Trump... | Business Insider
- This subscription box is the perfect gift for dog lovers this holiday season | Business Insider
- I have 13 kids and no debt — here's how I afford it | Business Insider