Scotiabank Urges Switch Trades Ahead of Tax-Loss Selling Season
- Broad-based index gains may exacerbate selling, bank says
- The S&P/TSX Equal Weight Index has outperformed in 2024
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As the tax-loss selling season approaches, Bank of Nova Scotia is recommending switch trades in a year where broad-based gains necessitate more targeted action.
“Overall, investors do not have as large of choice for tax losses purposes this year, which may exacerbate selling pressure,” Scotiabank analysts including Hugo Ste-Marie wrote in a note Friday. “Given that investors have to sell them to crystallize their losses, these stocks may continue to experience downward pressures until year-end.”