Year-end harvesting

The article talks about the fact that many investors have been selling their long term investments which have resulted in the long term capital gains. This is due to the fact that in 2001, President Bush has passed the Economic Growth and Tax Relief Reconciliation Act that pose a maximum tax of 15% upon the long-term capital gain. However, this tax benefit is going to expire on December 31, 2010. Starting on Jan. 1, 2011, the maximum long term rate may jump up to 20% rate. Therefore, the stock market may have some unpredictable volatility that is totally unrelated to current economic situations.