September 2025
The stability of inflation and weakness in employment have raised expectations for a more accommodative monetary environment. Combined with the trade agreements reached so far and easing tensions with China, this has boosted investor optimism.
Here’s a summary of key developments:
Market Performance
After a challenging first half of the year, the S&P 500 and Nasdaq have posted double-digit gains year-to-date.
Valuation
The S&P 500’s valuation remains high, with a forward P/E of approximately 22x.
Strategy and Positioning
While the corporate environment could gain momentum from fiscal and monetary stimulus, we maintain a neutral tactical stance on Large Cap equities.
Key Events to Watch
- Employment trends and potential interest rate cuts.
- Corporate earnings growth as the year draws to a close.
