Press "Enter" to skip to content

The Red Line

The tax effect behind the market selloff

After last year's low volatility and impressive gains, stock market investors have been whipsawed in early 2014. Stocks dropped sharply in January, with the Dow Jones Industrial Average tumbling more than 5%, and falling again Monday.

Yet the roller-coaster ride may just be getting started. Aside from the trouble in emerging markets and slowdown in U.S. manufacturing activity, there is a tax effect at play in the current market downturn, and it is likely to increase market volatility for the rest of this year.

Sign Up For Weekly Alerts

There will be a new Featured Column every week to 10 days. Sign up to receive an email alert when it posts. In the meantime, please visit The Red Line to see a new Column of the Day every day.