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
- Two For Monday | iBankCoin.com
- The Japanization Of Europe In 9 "Different This Time" Charts | ZeroHedge
- As the ‘Sanctions War’ Heats Up, Will Putin Play His Gold Card? | Financial Sense
- Pity the Sub-Genius | ZeroHedge
- The Astonishing Rise of Central Bank Fear | ZeroHedge
- Forex Scandal Exposes Difficulty of Financial Regulation | Financial Sense
- Your Role In The World Explained (In 1 Simple Sketch) | ZeroHedge
The most relevant financial news and articles from the Internets
- Bill Belichick Benches Player Who Just Had The Game Of His Life For Showing Up Late To Practice... | Business Insider
- Google Looks For These Flaws When It Wants To Fire People (GOOG) | Business Insider
- Australia beat South Africa, win ODI series 4-1 | Business Insider
- Serbian basketball fan stabbed to death in Istanbul | Business Insider
- It's Insanely Expensive, But There's A Secret Benefit Of Living In... | Business Insider
- Ladies And Gentlemen, We Have Finally Learned The Right Way To Say 'Krugman'! | Business Insider
- Spending On Native Advertising Is Soaring As... | Business Insider