Build Positions in Tax-Selling Stocks

Hey There Income Hunters,

 

Every year there is significant equities selling for tax-loss reasons and it presents a great opportunity to pick up cheap stocks relative to the broad indexes

 

Such selling can cause an underperformance of greater than 15% versus SPX and QQQ.

 

This year brings another twist that offers an even greater chance for big returns in Q1 2022.

 

Today, I’ll share the data and a couple of stocks to consider buying either outright or against the broad index. 

 

China Offers Opportunities

 

For a number of reasons, China stocks, in general, have gotten hammered in 2021.

 

Factors include:

 

      • Tighter regulations on tech
      • Evergrande default, and property issues in general
      • The government's policy to decrease purchases of commodities due to price increases

 

These were long-term decisions by the government and I believe they are positive for China’s performance in 2022.

 

The other big positive for China versus the US is the diverging trends in policy as the US heads towards a tightening while China is firmly entrenched in an easing cycle. 

 

The Stock I Like

 

I have been buying the KraneShares CSI China Internet ETF (KWEB)

 

I think this is the best Chinese play heading into 2022 and I am selling rips higher in QQQ as a pair against KWEB.

 

I think both trades can work, which will increase returns.

 

A paired trade takes advantage of diverging trends between 2 stocks that normally have a strong correlation . 

 

 

Bring It Home

 

It’s party time in China.

 

You don’t get many gifts offered up by the market Gods and when you do you have to take advantage.

 

To get the full benefit of my research and my four-step profit-stoking method, join my Power Income Trader program today. 

 

Live and Trade with Passion,

 

Griff

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