Ignoring the age-old adage that it’s best to sell in May and stay away till September, we look at some of the best stock to buy and hold over the summer months.
Where Can I Buy Stocks in June 2021?
Two of the best brokers for buying stocks this month are eToro and OBR.
eToro is the leading social trading platform that supports all the major financial instruments in the market today. With registered offices in the UK, the US, Cyprus, and Mexico, eToro has helped millions of investors make the best of available trading opportunities. It is easy to use eToro from anywhere in the world. Just open an account and start trading.
Capital is a broker platform that offers 24-hour support. The company’s track record is excellent, with its product offering growing to currently encompass over 300 different assets cutting across forex, commodities, stocks and cryptocurrencies.
New investors looking to trade stocks can easily do so by opening a trading account. Join Capital to access all the major global indices and shares.
Which Stocks to Buy in June 2021?
The following ten stocks could be ones to watch in June. Although you might spot some themes such as commodity stock picks, different stocks are included for different reasons, and they’re in no particular order. Each stock has its own story, and as always with investing, the trick is to diversify rather than put all your money into any single stock. While the list starts with FTSE stocks listed on the London Stock Exchange, many of these companies are available to trade on other exchanges such as the New York Stock Exchange, and your broker should let you buy in wherever you are in the world.
1. Rio Tinto (LSE:RIO)
Today’s top early riser in London trading on 1st June 2021 was mining company Rio Tinto, which is why it makes it onto this list. But it’s not only about short-term price action because this stock’s share price has more than doubled in the past five years and shows no signs of slowing down since commodities have come back into fashion during the coronavirus pandemic.
2. Anglo American (LSE:AAL)
London’s second early riser of the first day of the month is another mining company: Anglo American. Its shares are also up over five years, to near the high points previously reached in 2008 and again in 2010. This could be a sign to sell at the long-term resistance level, but not if you think that commodities such as copper (which this company mines) will continue to soar during summer.
3. BHP Billiton (LSE:BHP)
BHP Billiton is another mining stock that got off to a good start on the first day of June. In this context, it’s a placeholder for all the other FTSE 100 commodity stocks that also include Glencore and Antofagasta. If you believe that gold, silver and other precious metals will continue to appreciate, you can consider these stocks as proxies for those precious metals.
4. Royal Mail (LSE:RMG)
There’s been a lot wrong with Royal Mail in recent years, but we can’t ignore the fact that its shares have appreciated more than fourfold since the March 2020 low point. It’s profitable thanks to the lockdown delivery boom, it pays dividends, and it still enjoys something of a monopoly in the UK.
5. Amazon (NASDAQ:AMZN)
Amazon is one of the Facebook-Amazon-Netflix-Google (FANG) tech stocks that did well during the pandemic while we were all forced to work and play at home. Having reached an all-time high price in August 2020, the share price has traded more-or-less sideways ever since. This could be a good stock to buy if you think that the rise of the tech titans isn’t merely transitory and that the share price is simply pausing for breath — like it did between June 2018 and January 2020 — before resuming its bull run.
6. Alphabet (NASDAQ: GOOG)
Another FANG stock, Google’s parent company Alphabet has been bullish since as far back as 2004, and has recently gone exponential. This one is a momentum play, i.e. a stock to buy if you think that the sheer force behind the share price rise will propel it even higher.
7. Tesla (NASDAQ:TSLA)
What the previous companies have in common is that their share prices are doing well as we’re entering June. Tesla’s story is somewhat different because its shares have been bearish this year after rising by a factor of more than 20 between May 2019 and January 2021. If you believe in the future of electric cars, and you don’t think this company will be further buffeted by Bitcoin going into freefall, now could be a good time to “buy in the dip”.
8. Rolls-Royce Holdings (LSE:RR)
The past 18 months have been disastrous for aerospace companies such as Rolls Royce as their main customers — the airlines — were grounded during the coronavirus pandemic. With travel hopefully about to fully open up, maybe this stock’s share price will start to take off from its current plateau. Indeed, many stocks such as the aforementioned Tesla had share prices that had flatlined before shooting to the stars.
9. Hammerson (LSE:HMSO)
Another company whose share price suffered significantly (to say the least) during the pandemic is shopping centre owner Hammerson. The death knell for physical retail stores probably sounded some years ago, so it’s not down solely to the pandemic that this stock’s plateaued share price could see a significant boost as economies continue to reopen. Maybe the only way is up.
10. GameStop (NYSE:GME)
Meme stock GameStop’s share price has been up and down like a yo-yo since amateur traders on social media sent it soaring in January this year in an attempt to squeeze out the professional short-sellers. Is this company worthy of its still-high share price on any fundamental measure? Who knows? But we do know that big share price movements — up or down — are how some people make a lot of money. So, it could be worth a punt with a protective stop order in place.
Why Buy Stocks in June 2021?
There is a very old saying in the stock markets, which says: “Sell in May and go away, and come on back on St. Leger’s Day.”
In case you’ve forgotten, St. Leger’s Day is 11 September, so this saying basically advises you to stay out of the stock market over the summer months when (historically) trading volumes were lower due to market participants being away on vacation.
This year is definitely different, because — for the second year running — vacations are largely off the cards. And the old adage probably no longer holds water because the markets do not depend on merchant bankers in top hats being physically present in London or any other financial centre. Professionals and amateurs alike, we can all now invest from anywhere at any time, so any seasonal slowdown has all but disappeared.
Indeed, US indices such as the S&P 500, and even the relatively lacklustre FTSE 100 appear to be continuing the sustained bull runs that began in March 2020. It’s a brave investor who bets against the prevailing trend, so let’s look at a selection of the best stocks to buy this month.
The Bottom Line on Buying Stocks in June
The bottom line on buying stocks in June is that it’s probably no worse a time than any other, despite the old saying to the contrary. We’ve suggested a few stocks that could be worth buying, but you should do so only after doing your own research.