Looking back on September 2021


Key points

  • September often returns a loss, and September 2021 was no different
  • The market is grappling with a "wall of worries", with fear and nervousness dominating
  • Markets go through these phases - most recently in the last quarter of 2018

Our monthly update for September 2021 is now available. And since September marks the end of the first half of the financial year we've also provided some extra commentary looking back over the last six months.

Just right now this market reminds us of a learner driver stuck at a busy intersection. There's lots of inching forwards and backwards, and lots of switching from the accelerator to the brake, but really we aren't going anywhere. That lack of conviction in any direction has seen share prices sag to a level set by opportunistic buyers.

We saw a similarly moribund market in late-2018, where markets slid through the last quarter only to roar away once the fears ebbed at the start of 2019. We expect a similar dynamic here where eventually the gloom will lift and markets will bounce back, but it's not yet clear just what event will break the current spell.

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