Alan Brochstein, CFA submits:
With the year almost over, we have just crossed the end of the beginning of the window-dressing season. About half of all mutual funds ended their fiscal year last week, and you can bet that many were busy taking the wounded horses behind the barn over the past month. Who wants to show a loser to their investors? This type of behavior happens all the time, creating opportunities for new buyers. Of course, the next two months may be tough for some of these dogs, as tax-loss selling as well as year-end window-dressing continue to impact them, but it’s worth at least investigating if the selling has left these stocks too cheap to pass up.
I ran a screen designed to identify potential window-dressing victims that could be worth a look:
