{"id":10935,"date":"2025-09-09T02:29:32","date_gmt":"2025-09-09T00:29:32","guid":{"rendered":"https:\/\/oxfordwisefinance.com\/blog\/?p=10935"},"modified":"2025-09-09T02:29:41","modified_gmt":"2025-09-09T00:29:41","slug":"alternative-assets-surge-as-stocks-decline","status":"publish","type":"post","link":"https:\/\/oxfordwisefinance.com\/blog\/alternative-assets-surge-as-stocks-decline\/","title":{"rendered":"Alternative Assets Surge as Stocks Decline"},"content":{"rendered":"<\/p>\n<div>\n<p>As September approaches, it&#8217;s not just the vibrant <b>fall foliage<\/b> that starts to emerge. T.S. Eliot may have called April the cruelest month, but on <b>Wall Street<\/b>, September takes that title. According to <b>RBC Wealth Management<\/b>, historical data dating back to 1928 indicates that stocks typically decline by an average of <b>1.2%<\/b> during this month, making it a noteworthy time for investors.<\/p>\n<p><span>Theories regarding the cause of the September slump vary widely, ranging from <b><a href=\"https:\/\/oxfordwisefinance.com\/blog\/bitcoin-hits-112000-whats-next-for-investors\/\">institutional investors<\/a><\/b> rebalancing their portfolios to decision-makers returning from summer breaks. However, market experts generally advise against placing too much emphasis on these theories. They strongly recommend maintaining a level-headed approach and avoiding impulsive reactions to seasonal market fluctuations.<\/span><\/p>\n<div class=\"ca-pcu-inline  has-ad-icon    money-embed-ca\" data-pcu-render-at-=\"2025-09-08T18:52:27Z\" id=\"ap90647-ww\">\n<div id=\"ap90647-ww-indicator\">\n<div id=\"ap90647-ww-indicator-wrapper\"><span id=\"ap90647-ww-text\">Ads by Money. We may be compensated if you click this ad.<\/span><span id=\"ap90647-ww-label\">Ad<\/span><span id=\"ap90647-ww-icon\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" alt=\"Ads by Money disclaimer\" height=\"16\" width=\"16\" src=\"https:\/\/i0.wp.com\/s3.money.com\/prd\/image\/image\/15240\/163e573e-202a-466a-b8b8-93da65db2b13.png?resize=16%2C16&#038;ssl=1\" \/><\/span><\/div>\n<\/div>\n<\/div>\n<p><span>\u201cThere\u2019s no fundamental reason why September should be worse,\u201d stated <b>Ross Mayfield<\/b>, an investment strategist at <b>Baird<\/b>. \u201cThe reality is that it\u2019s a statistical quirk that has transformed into a self-fulfilling prophecy, primarily driven by <b>algorithmic trading<\/b> practices.\u201d<\/span><\/p>\n<p><span>Even if this September presents challenges for investors, Mayfield emphasizes that a seasonal downturn doesn&#8217;t necessarily indicate that the market will experience a downturn in 2025. In fact, historical trends often reveal a strong correlation between the final months of the year and market resilience.<\/span><\/p>\n<p><span>\u201cIf fall is typically a rougher season for the market, the end of the year frequently emerges as the most favorable time for investors,\u201d he explains. \u201cOur perspective on financial markets is that positive momentum tends to generate further positive momentum.\u201d<\/span><\/p>\n<p><span>Recent data reflecting negative investor sentiment further indicates that there is no indication of a market bubble, supporting the idea that any downturn could be temporary. \u201cI don\u2019t detect any signs of euphoria that would suggest we\u2019ve reached a market peak,\u201d Mayfield observes.<\/span><\/p>\n<h2>What Drives Investor Interest in Alternative Assets?<\/h2>\n<p><span>While September may present challenges for traditional stocks, there is a notable surge in demand for <b>alternative assets<\/b>, a trend that analysts predict will continue. \u201cWe anticipate this movement to persist in the coming years,\u201d states <b>Christian Magoon<\/b>, CEO of <b>Amplify ETFs<\/b>, in an email to Money.<\/span><\/p>\n<p><span>The driving forces behind this trend can be attributed to the dominance of the <b><a href=\"https:\/\/oxfordwisefinance.com\/blog\/impact-of-a-weak-u-s-dollar-on-your-finances\/\">U.S. dollar<\/a><\/b> as the world&#8217;s primary reserve currency and the escalating national debt. Investors foresee that authorities will continue to depend on debt issuance to fund government activities, leading to lower interest rates to ease the burden of servicing that debt.<\/span><span> \u201cThese strategies encourage investors to acquire assets that remain insulated from devaluation by central banks,\u201d Magoon adds.<\/span><\/p>\n<p><span>A prime example of this trend is gold: The spot price per ounce of this precious metal has recently surpassed the significant threshold of <b>$3,500<\/b> for the first time this month, marking an impressive increase of over <b>34%<\/b> this year alone. Analysts attribute this spike to cautious investors seeking alternatives to bonds in anticipation of upcoming <b>Federal Reserve rate cuts<\/b>, a sentiment heightened by the weak jobs report released in August that hints at potential inflationary pressures.<\/span><\/p>\n<p><span>Experts now predict that a rate cut is imminent in September, with a second cut likely by the year\u2019s end. Approximately <b>10%<\/b> of market analysts even expect a substantial half-percentage point rate cut this month, surpassing the usual quarter-point reduction. The futures market indicates an <b>80%<\/b> probability of rates declining by at least <b>75 basis points<\/b> this year, doubling the expectations prior to the jobs report.<\/span><\/p>\n<p><span>\u201cGold is a global reflection of fiscal concerns and the prevailing belief that inflation will not be curbed,\u201d explains <b>David Stubbs<\/b>, chief investment strategist at <b>AlphaCore Wealth Advisory<\/b>. Gold has traditionally served as a hedge against inflation, and rising inflation diminishes the purchasing power of bond yields.<\/span><\/p>\n<p><span>Additionally, products related to gold, such as <b><a href=\"https:\/\/oxfordwisefinance.com\/blog\/buy-gold-a-simple-guide-to-investing-wisely\/\">gold-backed exchange-traded funds (ETFs)<\/a><\/b>, have experienced significant inflows due to these market sentiments. Silver has also capitalized on this trend, showing an impressive increase of approximately <b>42%<\/b> this year.<\/span><\/p>\n<p><span>However, precious metals aren&#8217;t the only <b>alternative assets<\/b> witnessing a surge in value during this period. The flagship cryptocurrency <b>bitcoin<\/b>, along with other altcoins such as <b>ethereum<\/b> and even meme coins, has demonstrated substantial growth this year. Although bitcoin has retreated from its record high of nearly <b>$125,000<\/b> in August, analysts remain optimistic about continued strong demand for this asset class.<\/span><\/p>\n<p><span>\u201cBoth [bitcoin and ethereum] are positioned to challenge new record highs before the year concludes,\u201d says <b>Joel Kruger<\/b>, a strategist at <b>LMAX Group<\/b>, in comments to <em>Barron\u2019s<\/em>.<\/span><\/p>\n<p><span>Experts are quick to note that cryptocurrency occupies a unique space among alternative assets due to its extreme volatility and lack of inherent value. The evolving regulatory environment\u2014and its growing acceptance in Washington\u2014also serves as a significant advantage for this asset class.<\/span><\/p>\n<p><span>\u201cThe shift in regulatory tone has been monumental,\u201d Stubbs remarks.<\/span><\/p>\n<h2>How Can Ordinary Investors Navigate the Market?<\/h2>\n<p><span>If you find yourself contemplating how to safeguard your investments against potential stock market declines this fall, the answer is straightforward: adhere to your established financial plan, as advised by Baird\u2019s Mayfield. \u201cThis is a time when you should anticipate increased volatility, but I never recommend making decisions solely based on seasonal trends,\u201d he asserts.<\/span><\/p>\n<p><span>While the temptation to time the market may be strong, financial professionals caution against attempting to trade your way out of a downturn. Most investors will benefit more from exercising patience and weathering any seasonal declines. \u201cIt\u2019s crucial to incorporate this into your expectations,\u201d Mayfield advises. \u201cExiting the market is likely the wrong strategy.\u201d<\/span><\/p>\n<p>The only exception to this guidance is if recent market gains have skewed your asset allocations. \u201cThis year has seen markets reach all-time highs, with valuations soaring and the market becoming increasingly concentrated,\u201d notes <b>Thomas Martin<\/b>, senior portfolio manager at <b>Globalt Investments<\/b>. \u201cInvestors should critically assess their positions and ask themselves, \u2018Am I genuinely diversified?\u2019\u201d<\/p>\n<p>Having an excessive portion of your portfolio concentrated in <b>tech-heavy growth stock funds<\/b> might expose you to greater risks if earnings fail to meet these stocks&#8217; inflated valuations. \u201cWhen that segment of the market experiences a downturn, it tends to be more severe and abrupt,\u201d he warns.<\/p>\n<div class=\"ca-pcu-inline content-width has-ad-icon    money-embed-ca\" data-pcu-render-at-=\"2025-09-09T00:16:47Z\" id=\"ap4878-ww\">\n<div id=\"ap4878-ww-indicator\">\n<div id=\"ap4878-ww-indicator-wrapper\"><span id=\"ap4878-ww-text\">Ads by Money. We may be compensated if you click this ad.<\/span><span id=\"ap4878-ww-label\">Ad<\/span><span id=\"ap4878-ww-icon\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" alt=\"Ads by Money disclaimer\" height=\"16\" width=\"16\" src=\"https:\/\/i0.wp.com\/s3.money.com\/prd\/image\/image\/15240\/163e573e-202a-466a-b8b8-93da65db2b13.png?resize=16%2C16&#038;ssl=1\" \/><\/span><\/div>\n<\/div>\n<\/div>\n<h2>Explore More Insights from Money:<\/h2>\n<p>Everyday Investors Play a Crucial Role in Sustaining the Bull Market<\/p>\n<p>Are U.S. Stocks Overvalued? Perspectives from Everyday Investors and Experts Differ<\/p>\n<p>Despite Record Highs, Why Is Investor Sentiment So Low in the Stock Market?<\/p>\n<\/p>\n<\/div>\n\n<p><a href=\"https:\/\/money.com\/stocks-brace-for-september-slump\/?xid=moneyrss\" rel=\"nofollow\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As September approaches, it&#8217;s not just the vibrant fall foliage that starts [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10936,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","pagelayer_contact_templates":[],"_pagelayer_content":"","iawp_total_views":1,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[142,258],"tags":[50],"class_list":["post-10935","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-business","category-investment-strategies","tag-news","col-md-12"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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