1 Compelling Reason the Dow May Soar Into 2014

1 Compelling Reason the Dow May Soar Into 2014

The Dow Jones Industrials have posted amazing gains so far in 2013, prompting many investors to get nervous about its future prospects. But there's one compelling reason investors should be optimistic going into the New Year.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at this key driver of stock market growth for the rest of the year. Dan notes that in order to cut back on stock exposure, investors in taxable accounts have to incur capital gains and pay tax on their profits. If they can wait until January, though, the tax liability doesn't hit until they file their 2014 tax-year returns. Dan concludes that while Caterpillar and IBM won't see much impact since they've fallen for the year, Boeing and Nike could continue to rise because of this phemoneon. Dan warns that seasonal factors are never perfect, but this one could nevertheless be a contributing factor to a year-end rally.

Don't be afraid
Millions of Americans have waited on the sidelines since the market meltdown in 2008 and 2009, missing out on huge gains and putting their financial futures in jeopardy. In our brand-new special report, "Your Essential Guide to Start Investing Today," The Motley Fool's personal-finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.

The article 1 Compelling Reason the Dow May Soar Into 2014 originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Nike and owns shares of IBM and Nike. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published