XJO - Week-end Charts and Chat. 13/14/June, page-12

As we near the financial year end and maybe the two weeks after next financial year, I believe that we are likely to expect sell offs.
It would be likely to expect that many holders (institutional/retail) are sitting on losses on their current holdings.
There is also a high likelihood that many people/companies have overall profit on shares they have sold (in the past)

Let's say my current portfolio is worth $40,000 with a loss of $10,000.
However previously in this financial year, I have made a $10,000 capital gain.
Assuming I earn in the 37k to 90k Taxable income bracket, then I would need to pay 32.5% of my capital gain in taxes (i.e $3,250 if I did not sell).

$3,250 is 8.125% of my 40k portfolio. Depending on how I feel the market is going, then I may sell all shares or hold
If I sell today or sometime this month, I avoid the tax on the capital gain during this financial year,
But take the risk of losing out if my share portfolio would have increased more than 8.125% (Had I held the shares instead of selling)

People also need to be very careful with "wash sale" rule with tax which is selling shares to reduce losses and then buying back immediately or within few days/same week which may cause penalties if investigated.

Then there is also the likelihood of investors selling their share profits just after the next financial year begins in July to push back their capital gains payment

i.e Selling shares for profit on July 3rd 2020. It means that the tax on these capital gains (profits) will only need to be paid by October 31st 2021 (assuming that's when the tax is due in next financial year).

Disclaimer: This is not Financial advice. I will not be held responsible for anyone's decision who reads this. You need to assess your own personal circumstances to make your own decision. You will need to bear the gains/losses if you were right or wrong, similarly to the situation if you bought shares that did really well or really poorly. Cheers