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
- Did Brexit Kill the Oil Price Rally? | Financial Sense
- Why Barclays Thinks The V-Shaped Recovery Is Dead: "Massive Redemptions Are Coming" | ZeroHedge
- UK Police Call Emergency Meetings After Explosion In Hate Crimes After Brexit | ZeroHedge
- Waiting for Humpty Dumpty | Financial Sense
- At Least 28 Killed After Suicide Attackers Set Off Blasts At Istanbul's Ataturk Airport - Live Feed | ZeroHedge
- Brexit and the Revolt Against Globalism | Financial Sense
- Market Recap Jun 29, 2016 | FundMyMutualFund
The most relevant financial news and articles from the Internets
- 12 ways a top product designer would rearrange the human body for... | Business Insider
- China's economy is looking alright --... | Business Insider
- This rising star at IBM just signed a deal with Cisco to take on Slack, Microsoft,... | Business Insider
- GREEN BERET: This is how we’re different from Navy SEALs | Business Insider
- Voters were asked which words describe Donald Trump, and the results were brutal | Business Insider
- Brazil’s embattled president could see herself... | Business Insider
- We got access to the best deal out there for a custom suit — and went through... | Business Insider