%0 Journal Article %A Edward N.W. Aw %A Sanjun Chen %A Christopher R. Dornick %A John Q. Jiang %T The Art of Losing in Investing: Harvesting Tax Losses for a Positive Impact %D 2018 %R 10.3905/jwm.2018.21.1.018 %J The Journal of Wealth Management %P 18-26 %V 21 %N 1 %X Paying taxes is universally disliked. Tax-loss harvesting strategies help offset the capital gains tax investors incur. Tax-loss harvesting involves selling stocks that have returned negative over a recent time period. These recognized losses can offset investment gains and therefore lower the investor’s capital gains tax bill. The authors argue that tax-loss harvesting strategies are smart beta momentum strategies in disguise. They also argue that just as momentum strategies are managed year-round, tax-loss harvesting strategies should be too, not just in December.TOPICS: Wealth management, legal/regulatory/public policy %U https://jwm.pm-research.com/content/iijwealthmgmt/21/1/18.full.pdf