Savings & Investment

Updates In Market Trends – Iran, Holidays, and Oil Prices

What is new in the market trends? A kind of, sort of deal with Iran has even some Democrats stewing, but initial reaction from the futures has been muted thus far. Sometimes this type of news requires some digestion, especially as the details still seem somewhat fuzzy. But be sure that analysts will use it as an excuse for whatever happens next as well, that’s what they do. For now stocks seem to be taking it as the administration is selling it, that is just a temporary deal of a few months to see what happens. Europe has edged a bit higher after the announcement and oil has dropped, so thus far it looks as though stocks will be steady.

This holiday season, market trends may be very quiet, and with a big storm a possibility stocks and bonds may slow to a crawl.  One thing to keep in mind is that tax-loss selling is very popular this week. The wash-sale rules require an investor to wait 30 days to buy back any stock that was sold to be eligible for a tax loss on this year’s taxes. As January tends to be a bounce back month for many a dog stock (but not always — sometimes a dog is a dog!) as they recover a bit from end-of-year tax loss selling, some investors sell right about now. That way they can lock in a tax loss and then but it back before the end of the year (the deadline to record losses for 2013). Whether this is advisable is another story completely, but it is on the minds of many investors.

As earnings season heads into the rearview mirror, investors looked towards Black Friday sales and any other data they can get their hands on. It will be slim pickings this week, but the aforementioned drop in oil prices can’t hurt:

“We’re almost through reporting season for companies in the U.S. and Europe, and one thing that is common for everybody is earnings are falling or stable, so very few companies are able to increase earnings,” said Drusebjerg. “So if we want to see increased earnings, we want to see increased growth, and lower oil prices would definitely help that.”

Yes, but it’s that bit about “few companies…able to increase earnings” that is concerning to most people. Oil price drops are good, but staying lower always seem to be the problem. But, it sure would be nice to see lower prices at the pump, wouldn’t it? While it may be a relatively slow trading week, anything can happen and we’ll be keeping an eye out and staying updated on the market trends. In the meantime, Happy Holidays everyone!

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