ausbiz | Activam weighs September market risks as investors brace for the Fed's next move.

On ausbiz, Robert Talevski discussed the seasonal challenges markets often face in September, the possibility of further Fed rate action, and why strong fundamentals continue to support the broader investment outlook despite near-term volatility.

Key themes:

• September has historically been the weakest month for US equities, with investors closely watching upcoming inflation data, bond yields and oil prices.
• While a Fed rate hike remains possible, there is a risk of policy becoming entangled with politics, with any market reaction potentially starting negative before fundamentals reassert themselves.
• Despite expectations of continued volatility, Activam remains constructive on the longer-term outlook, supported by moderating inflation, solid earnings growth and productivity gains from AI-driven efficiencies.