Last week’s volatility convinced many that Wednesday’s high-impact key reversal day (KRD) down was the “kiss of death.” But the reversal lacked follow-through, and that failure enhances the probability of further gains later this year. This week could be crucial in determining whether institutional investors go bargain hunting or head for the exits. My guess was that bargain hunters would dominate the holiday-shortened week, and so far, that has been the case.
But I wouldn’t expect too many new stock market highs in the summer months because it appears that the Fed has concluded that the economy has performed well enough for them to ease back slightly on further stimulus at some time in the near future.
In a somewhat overbought market, it is important to concentrate on stocks that offer unusual value. Thus, this month’s list includes stocks that, in addition to potential growth opportunities, provide dividends or special features that could enhance their value.
Here are your top stocks to buy for June: