Bank of America analysis warns of equity weakness and commodity strength in September amid U.S. presidential cycle dynamics.
Bank of America’s latest report highlights September as a historically challenging month for equities, particularly during the second year of the U.S. presidential cycle. The analysis points to seasonal trends that could weigh on stocks while favoring commodities as investors adjust positioning ahead of potential volatility.
Historically, September has marked a period of weaker performance for risk assets, with the U.S. presidential cycle amplifying market sensitivity. The report notes that commodities, including energy and metals, often outperform during this phase, reflecting shifting investor sentiment and macroeconomic uncertainties.
No immediate market reaction was detailed in the analysis, though the trends suggest a cautious outlook for equities in the near term.