This has nothing to do with politics. There is normal year end selling to take profits and realize losses to offset the profits. But in 2020 the markets in the last weeks set record after record and any serious yr end selling would have meant a large Capital Gains hit. By waiting until 2021 to take the gains it puts off for at least a year the need to pay CG tax on the profits plus it allows them to offset these gains by possible losses incurred throughout this year.
Many are quick to assign politics to market movement but in fact it is corporate earnings which move the markets. To the limited extent a political event will cause a market move that move will be short term and occurs when selling is done in anticipation of other investors selling and not for any reasons related to the economy.
I disagree. There is nothing that will prevent capital gains taxes from increasing in 2021 if the dems take control of congress under a Biden administration. The time to sell was last Thursday in 2020.
“There is normal year end selling to take profits and realize losses to offset the profits.”
Yep, normal healthy correction. Long overdue.
“I disagree. There is nothing that will prevent capital gains taxes from increasing in 2021”
There are “knowns” and “unknowns” and you are confusing the known, ie CG hit in 2020 from powerful market advances those final few weeks of last year to an unknown which is the probability of a Biden tax increase on CG or taxes in general. Also by deferring the selling into 2021 it gives the seller a full year of time to offset the gains with any coming losses.