1 Compelling Reason the Dow May Soar Into 2014

The Dow Jones Industrials (DJINDICES: ^DJI  ) have posted amazing gains so far in 2013, prompting many investors to get nervous about its future prospects. But there's one compelling reason investors should be optimistic going into the New Year.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at this key driver of stock market growth for the rest of the year. Dan notes that in order to cut back on stock exposure, investors in taxable accounts have to incur capital gains and pay tax on their profits. If they can wait until January, though, the tax liability doesn't hit until they file their 2014 tax-year returns. Dan concludes that while Caterpillar (NYSE: CAT  ) and IBM (NYSE: IBM  ) won't see much impact since they've fallen for the year, Boeing (NYSE: BA  ) and Nike (NYSE: NKE  ) could continue to rise because of this phemoneon. Dan warns that seasonal factors are never perfect, but this one could nevertheless be a contributing factor to a year-end rally.

Don't be afraid
Millions of Americans have waited on the sidelines since the market meltdown in 2008 and 2009, missing out on huge gains and putting their financial futures in jeopardy. In our brand-new special report, "Your Essential Guide to Start Investing Today," The Motley Fool's personal-finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2747602, ~/Articles/ArticleHandler.aspx, 4/18/2014 2:47:49 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 5 hours ago Sponsored by:
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASD 4,095.52 0.00 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

4/17/2014 4:31 PM
^DJI $16408.54 Down -16.31 -0.10%
DOW JONES INDUSTRI… CAPS Rating: No stars
BA $127.92 Up +1.88 +1.49%
The Boeing Company CAPS Rating: ***
CAT $102.83 Down -0.10 -0.10%
Caterpillar, Inc. CAPS Rating: ***
IBM $190.01 Down -6.39 -3.25%
International Busi… CAPS Rating: ****
NKE $74.03 Up +0.93 +1.27%
Nike CAPS Rating: ****

Advertisement