Tax season is approaching in the USA with Q2 2018 being around the tax deadline (April 15). A lot of people made big gains in 2017 for which they have to pay taxes. Right now, however, with the market going through a massive correction, most people’s portfolio’s are down 50% or more. So the following scenario is possible: on top of those who are panic selling more and more as we go down, many will also need to cash out in order to pay their taxes, this drives the price down or at the very least prevents it from going back up. The bulls are out of money, the bears need cash, Q1 is not looking great as a whole, and Q2 might not either. Our guess is we might not see much green until after Q2 2018, perhaps Q3 or even Q4. If we look at 2017, a lot of growth took place in Q3 and Q4.
What are your thoughts? Share in the comments below.