There are three interrelated and somewhat connected "ancillary investing" activities in play at the moment: end of month/year window dressing, tax loss harvesting, and end of year catch-up.
Many mutual funds fiscal year end is October 31. Consequently we have been seeing the selling of losers and the buying of winners for window dressing purposes.
In addition, we have year end tax harvesting in operation. This has the effect of selling losers and buying winners.
End of year catch-up. Those managers who are behind the market (and that would be most of them) will be looking to catch-up and the way to do that is to buy stocks with strong momentum in the hope that that momentum will carry through to the end of the year and juice their performance.
All of these activities have the effect of selling losers and buying winners.
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