What Is the September Effect?
September has a habit of spooking investors, and not always for silly reasons. We dig into the “September effect” and why share markets have often struggled from late August into September, then talk honestly about whether it’s causality or just a pattern we love to repeat. From US tax-year dynamics to the way people position portfolios after a strong run, we walk through the real-world forces that can push markets lower and ramp up volatility.
From there, we zoom out to what we’re seeing underneath the headlines: a change in market tone. When momentum tech cools off, money can rotate into defensive shares and high dividend names. With an election cycle in the US, a slowing global economy, and interest rates moving offshore, we explain why “rigging the boat for heavy weather” can be a sensible mindset, especially for Australians managing a self-managed super fund or a long-term investment portfolio.
We keep it practical: how to think about buying during weakness without trying to pick the bottom, why reinvesting dividends matters, and how ETFs can be a simple entry point. We break down ETF basics in plain language, run through examples like SFY and A200, and tackle listener questions on investing for kids and grandkids, diversification including equal weight ETFs, transferring shares with capital gains tax in mind, and the tricky maths of mortgage versus investing. If you want a clearer, calmer way to think about market seasonality, portfolio diversification, and ETF investing on the ASX, this one’s for you.
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DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg