There Are Actually THREE Reasons Why Next Week Could Produce A Huge Selloff

hurricane earl

Photo: NASA

There are two well-traveled reasons why next week could see a big sell the news rally.1) The FOMC meeting.

2) The election.

Both have been highly anticipated, and though perhaps expectations have been tampered somewhat, it’s certainly conceivable that once they’re out of the way, stocks will hit an air pocket.

There’s one other thing to realise. A reader reminds us that the fiscal year to determine mutual fund capital gains ends this Friday. If funds sell big winners — like Apple — this week, and then there’s a big selloff next in the next two months, investors get hit with a tax (this year) and then also losses. If winners are sold next week, the taxes are deferred for another year.

So there’s a lot going on next week. Enjoy what looks like a calm day.

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