The Motley Fool

Are stocks about to fall?

It was a good start to September yesterday, with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) climbing 53.3 points or 1% despite a number of companies going ex-dividend. However, the index could be in for a rough ride over the next month or two based on a number of circumstances.

First and foremost, the market has traditionally struggled through the months of September and October. According to The Australian Financial Review, September has, on average (over the last three decades or so), usually seen slight gains whilst October has marked the worst month of the year. This is partially caused by the return from holidays in the northern hemisphere, whilst the five-year anniversary of the collapse of Lehman Brothers could also play on investors’ mentality.

Meanwhile, growing geopolitical risks in Syria, violence in Egypt and strong signs that the US Federal Reserve will begin tapering off from its bond buying program could also weigh stock markets down.

Should this be the case, investors could be presented with an excellent opportunity to stock up on shares, whereby the best time to buy is when others are fearful. One company that has already begun to fall is mining heavyweight BHP Billiton (ASX: BHP), whilst telecommunications giant Telstra (ASX: TLS) is also sitting nearly 4% below its August high.

Are you interested in our #1 dividend-paying stock? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading


Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.

NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!….

Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!