Why These Stocks Are Getting Hammered Again: Coach, Inc. (COH) and More

As you can see, these four stocks all have fundamental reasons that investors can point to in order to justify their recent losses. Yet tax-loss selling may also have played a role in their further declines, as taxpayers who made smart moves by delaying their tax-loss harvesting until 2013 finally pull the trigger and lock in those benefits.

What’s next?
If the tax-loss harvesting theory is correct, then downward pressure from selling should start to let up in the near future. In turn, that could help the stocks hit bottom — assuming, of course, that their fundamental prospects don’t decline further.

Taxes shouldn’t be the sole reason for choosing an investing strategy. But often, taking taxes into account can help you make smarter decisions about when to buy and sell stocks. That’s why it’s a good idea to consider tax consequences both within companies themselves as well as among your fellow investors.

The article Why These Stocks Are Getting Hammered Again originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Baidu, Coach, France Telecom, and Petroleo Brasileiro (NYSE:PBR). The Motley Fool owns shares of Baidu, Coach, and France Telecom.

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