What's Next For Markets Invincible?
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Sep 7, 2025 The discussion kicks off with the surprising strength of the markets entering September, typically a challenging month for equities. Higher beta stocks are emerging as leaders, while insights on inflation and interest rates reveal a 'Goldilocks' scenario for investors. Key economic indicators like CPI data are twinkling with potential implications for bond yields and overall market sentiment. There's also a fascinating look at how negative news might paradoxically foster a sense of stability, suggesting positive trends ahead for the market.
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Risk-On Leading September Rally
- Markets started September strong despite usual seasonal weakness, led by risk-on behavior.
- Higher beta and value names have outperformed, signaling recovery-style leadership.
Factor Shift From Momentum To Beta
- Factor analysis reveals sustained higher-beta and value outperformance since April.
- This shift has come at the expense of momentum and high-quality winners.
Mega Caps Skew Market Picture
- Mega-cap 'MAG7' names skew headline market performance and make index pictures misleading.
- Factors give a clearer view of investor positioning than raw index moves.