As the graphic shows, periods of market volatility, while often difficult for investors, can also create opportunities. Very often the periods of greatest market volatility can lead to the highest number of tax-loss harvesting opportunities, which can help increase after-tax returns when markets recover. In 2019, Fidelity helped generate over $160 million5 in harvested tax losses across clients' Portfolio Advisory Services accounts.
The right axis and blue line represent the movements of the U.S. stock market as measured by the Dow Jones U.S. Total Stock Market (Price Index).