Blog : Three Reasons January May Be Great

by Peter Leeds on December 31st, 2012

penny pile for stock blogThere are a few price drivers which are affecting your penny stock investments, and they may be turning around for the better in January.

1.  Tax-loss selling ends

Until the end of the year, penny stock investors can sell losing positions to offset gains (and therefore potential taxes).  As soon as 2013 rolls around, that tax loss selling season ends, relieving penny stocks of that selling pressure.

2.  Decreased uncertainty

There will either be a fiscal cliff deal or there won't.  There will either be an increase in the debt ceiling limit, or there won't.  Whatever the outcomes for these two events, the uncertainty will be greatly reduced.  Investors do not like uncertainty, and they even prefer bad news to uncertain news.  Even with a failure to address the fiscal cliff, or no solution to the debt ceiling, penny stocks could do well.  If there are positive outcomes to either of these two situations, even better.

3.  The January Effect in penny stocks

Penny stocks historically perform best in January.  Whether that is because of New Year's resolutions, anticipation of fuel and heating oil demand, or otherwise, January tends to treat penny stock investments pretty well.

January is gearing up to be a potentially great month for penny stocks.  Whether you agree with me or not, I'd love to hear from you.  Also, please spread this blog out to anyone you expect would benefit from knowing what's to come!

And to all penny stock investors, Happy New Year!

Get Our Best Low-Priced Investments

  • don't have the time?
  • can't do all the work required?
  • want selections from the authority?

For only $199 per year, we give you our best high-quality, low-priced stock picks. Along with a full team, Peter Leeds is the widely recognized authority on small stocks. Start making money from penny stocks right away.