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Ken Fisher for Forbes - Google and 5 Other Big Cap Standouts

September 05, 2013 | About:
Holly LaFon

Holly LaFon

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This month and next you’re sure to hear raucous claims regarding how treacherous these months are. Yes, on average September and October are among history’s three worst (February being in between). September actually has an overall negative S&P 500 history.

But market averages often mislead. Remove a few superbad outliers like 1929, 1931 and 1937, and September looks pretty normal, with lots of volatility. That’s why you should refuse to be sucked in by the deafening screams of fall-ophobes.

There is nothing fundamental about September, October or any time slice that makes it more or less profitable. “Sell in May and go away,” for example, is a fallacy. However, you can always find some time slice that will support it.

Let the number crunchers hunt for headline-worthy factoids. Ignore them all because if they were really true they would already be priced into market expectations. Instead of obsessing, seek out great big-cap franchises, as I have directed you since the beginning of the year.

After Yahoo (YHOO) +0.18%‘s Marissa Mayer is long forgotten, Baidu (BIDU) is bye-bye and Facebook (FB) +1.77%is faceless, there will still be cockroaches and Google, which is up 25% since I recommended it last Oct. 22. I then said Google (GOOG) +0.63%seemed heady but readily buyable at 15 times 2013 earnings. It’s a basic monopoly that Uncle Sam won’t dare break up. What’s the difference between 16 times then and 18 times 2014 earnings now? Buy more.

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