How Does The Stock Market Perform Ahead Of Tax Day? 'Rough' At First, Data Shows
Portfolio Pulse from Anthony Noto
Ahead of Tax Day, the stock market typically experiences a slight decline, with the S&P 500 Index dropping an average of 0.2% in the first two weeks of April, attributed to taxpayers liquidating stocks for cash needs. However, post-Tax Day, the market tends to rebound, with the S&P 500 historically finishing April 1.7% higher. Financial advisors recommend investing in S&P 500 index funds for long-term gains, highlighting SPDR S&P 500 ETF (SPY), iShares Core S&P 500 ETF (IVV), Vanguard S&P 500 ETF (VOO), iShares S&P 500 Growth ETF (IVW), and Invesco S&P 500 Equal Weight ETF (RSP) as options. Ed Yardeni predicts a 26% surge in the S&P 500 by 2026.
April 15, 2024 | 7:39 pm
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NEUTRAL IMPACT
iShares Core S&P 500 ETF is likely to see short-term fluctuations due to Tax Day but is advised for long-term investment strategies.
IVV, tracking the S&P 500, could experience temporary drops around Tax Day due to increased sell-offs but is recommended for sustained investment.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
iShares S&P 500 Growth ETF could experience temporary declines around Tax Day but is recommended for long-term growth.
IVW, aimed at S&P 500 growth stocks, might face brief downturns due to Tax Day sell-offs but is suggested for long-term investment.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Invesco S&P 500 Equal Weight ETF may see short-term dips around Tax Day but is favored for its long-term investment merits.
RSP, offering an equal-weight approach to the S&P 500, may experience short-term declines due to Tax Day but is recommended for long-term portfolios.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
SPDR S&P 500 ETF may experience short-term volatility around Tax Day but is recommended for long-term investment.
SPY, mirroring the S&P 500, may face short-term declines due to Tax Day sell-offs but is expected to recover and is favored by financial advisors for long-term growth.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Vanguard S&P 500 ETF might face short-term market jitters around Tax Day but is highlighted for its long-term investment potential.
VOO, reflecting the S&P 500's performance, may undergo short-term volatility due to Tax Day but is advocated for long-term holdings.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90