Investment Institute
Macroeconomics

September Monthly Investment Strategy - The sum of all fears

KEY POINTS
Developments in the US economy continue to drive markets. The Fed started its easing cycle with an aggressive 50bp cut. US market volatility could persist into Novembers elections. Yet external factors are necessary to reconcile market pricing and US outlook.
China continues to concern. Domestic demand weakens further as house prices fall and the labour market softens. The authorities’ stimulus through industrial investment appears to be fading. We expect more stimulus, but the risks of a more severe slowdown in China are growing.
Adjustments to Japanese policy and impacts on repatriation flows have also impacted markets.
Eurozone activity is mixed but still subdued overall with pressing longer-term concerns, including the industrial complex, politics and fiscal stability.
These broader assessments are likely weighing on risk sentiment at the margins.

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    This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities. Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.

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