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.”
- Oil versus gold
- Market opens strongly
- 10 highlights of the reporting season
- Top stock picks for September
Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
- Coronavirus (COVID-19): 6 charts every Australian needs to see – April 6, 2020 1:46pm
- Innovation through crisis – April 2, 2020 11:48am
- Coronavirus (Covid-19): Why Is Italy’s Fatality Rate So Bad? – March 26, 2020 3:39pm