Turn Wall St Tax Panic into Your 2026 Bonanza!

Wall Street is lining up to sell.

Not because the businesses suddenly broke.

Because the tax code says they have to clean house before December 31.

That forced 2025 pain can be our 2026 gain.

If we are ready.

The Three Phases of Tax-Loss Harvesting

Tax-loss harvesting is not a theory. It is the year-end playbook for advisors, funds, and high-income investors.

It moves in three clear phases.

Phase 1: Planning (October – Early December)

This part is mostly over.

• Advisors ran year-to-date gain/loss reports

• Committees circled the problem names

• “Harvest lists” were built to offset huge gains in winners like Richtech Robotics (RR), Oklo (OKLO), Lemonade (LMND), Robinhood (HOOD), Planet Labs (PL), Fluence Energy (FLNC), and Powell Industries (POWL)

• The calls with clients happened

Nobody sees this part on a chart. But it sets up the move that matters to us.

Phase 2: Execution Wave (Right Now – Roughly December 10–23)

This is the main event.

Back offices and risk desks want trades done before holidays and settlement cutoffs.
That is when forced selling hits:

• Deep losers like Lululemon (LULU), Aurora Innovation (AUR), SoundHound AI (SOUN)

• Solar suppliers like Shoals Technologies (SHLS) and Array Technologies (ARRY)

• Struggling comms and satellite names like Viasat (VSAT), Comtech (CMTL), and Castellum (CTM)

• Bitcoin-levered plays like MicroStrategy (MSTR) and Marathon Digital (MARA) in portfolios that chased late

Investors are not selling because they hate the business. They are selling because the IRS counts gains and losses by calendar year.

This is the phase where LikeFolio readers can step in while others are stepping out.

Phase 3: Cleanup and Rebound (Late December – January)

Once the bulk of tax selling is done:

• Stragglers clean up remaining losers

• New-year capital starts to flow

• Some of the hardest-hit names bounce as the selling wall disappears

January often rewards the buyers who were willing to take the other side of December’s forced exits.

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