Why September hits stocks hard | Tiger Brokers insight

Tiger Brokers chief strategy officer Greg Boland talked with Proactive about the seasonal market weakness that often characterises the September quarter, and why 2025 is proving to be an exception to that trend. Boland explained that since 1945, the third quarter—especially September—has historically been the weakest for both the S&P 500 and the ASX. He attributed this to seasonal investment behaviours, tax-driven rebalancing, macroeconomic uncertainty, and investor psychology. “Fund managers and traders come back from holiday and they often sell risky assets,” Boland noted, highlighting how post-summer selling can impact market sentiment. However, 2025 has defied this usual pattern. According to Boland, early-year corrections tied to tariffs, combined with strong Q2 earnings and positive forward guidance, have helped sustain market momentum. “There’s been broad market participation,” he said, referencing the strong performance of the Russell 2000 and optimism around potential interest rate cuts. Boland also commented on U.S. earnings, noting that up to 90% of S&P 500 companies beat forecasts, with tech and AI-heavy names leading the charge, while sectors like materials and consumer goods underperformed. He emphasised that while volatility remains likely, “seasonality is a tendency, not necessarily a law.” To hear more insights and market analysis from industry leaders, visit Proactive’s YouTube channel. Don’t forget to like the video, subscribe, and enable notifications to stay updated. #GregBoland #TigerBrokers #StockMarket2025 #SeptemberEffect #ASXOutlook #USEarnings #Q3Markets #InterestRates2025 #StockMarketVolatility #TechStocks #InvestorInsights #ProactiveInvestors