Apple, Boeing, Merck, and More: Top Stocks for the Fourth Quarter

By Oliver Pursche  OCT 03, 2013 11:52 AM

A look at the sectors and companies that are likely to benefit from the global economic growth cycle.

 


Three days into the fourth quarter and investors are growing increasingly nervous that the politicians in Washington, DC, will derail a perfectly good bull market. While I don’t think the shutdown will last past next week, the upcoming debt-ceiling deadline is sure to cause additional anxiety. Investors must ignore this political theater and focus on the market fundamentals, which have actually been improving. While it is true that very recent economic data (e.g., the ADP employment report and ISM non-manufacturing data) has been slightly disappointing, the overall trend continues to be positive, and is in fact accelerating:
While I have a high degree of confidence in the data and forecasts above, it is not sufficient to make me want to take a broad S&P 500-like exposure to the market. Rather, I prefer focusing on the sectors and companies that are likely to benefit from the global economic growth cycle (industrials and consumer discretionary shares) as well as high-quality dividend-paying stocks whose profit margins are expanding (technology and health-care firms). Below are some of my firm's top picks and holdings within our various portfolios:
In my view, the biggest headwind to the market and the economy will be a potential change in monetary policy. To that end, as long as politicians continue to be inept and lack the ability to lead, central banks will continue to do what they have to and what they can to support growth.

Follow Oliver Pursche on Twitter: @opursche, and see Gary Goldberg Financial Services for more.
Stocks and sector ETFs mentioned are holdings within GMG Defensive Beta Fund (MPDAX) as well as separate accounts at Gary Goldberg Financial Services.