Economic and political factors can upset any well-reasoned fundamental or technical approach. And when the prospect of war is introduced, predictability suffers.
With this in mind, I expect the market to rally in the near term because it is oversold in almost every respect. This oversold condition, coupled with a geopolitical situation that has suddenly become less intense due to the surprise delay of military action against Syria, leads me to believe that buyers will push prices at least to their immediate resistance zones.
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Overall, the bull market is still intact. The U.S. is experiencing modest growth, but the possible reduction of the Fed’s bond purchasing program and a shaky recovery in employment add uncertainty to the equation. Thus, the stock selections for this month are focused on either high-quality dividend growth stocks or stocks with unusual features and strong financials that should weather the storms of political and economic instability.
Here are your top stocks to buy for September: