Tax-Loss Selling Is Wall Street’s Refuge in a Down Market

Taxes aren’t due for more than six months—but it’s time to start thinking about tax-loss selling.

That’s the term for selling a stock at a loss and using that to offset gains elsewhere in one’s portfolio. It can be hard to do in up markets, when so many stocks have risen on the year. For instance, in 2021, just 69 stocks finished the year lower. Some 416 stocks have dropped so far in 2022, though, making it more likely than not that investors have something to sell.