MENU

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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!