September rewarded investors with another exceptional month of equity returns. Many of the world’s leading stock indices climbed by roughly 5% despite what is historically a weak month of the year—a sound reminder that seasonal patterns shouldn’t be the basis for investment decisions.

North America’s two largest economies found relief through interest rate reductions, which paired well with technology’s continued momentum.

These combined forces are primarily responsible for heightened investor sentiment, so much so that valid concerns are largely being ignored. Underlying fundamentals are weakening, yet recently unlocked liquidity appears to be flowing into higher-risk assets rather than savings or less volatile securities.

Stability is lacking in other areas as well. At the time of writing, the U.S. government is shut down—ironically pausing much of the funding that caused the dispute in the first place: budgetary concerns.

The row between both major parties is likely a strategy to mobilize issues related to the debt ceiling in hopes of gaining political leverage ahead of the 2026 midterm elections.

If threats of firing or withholding wages from federal workers—or possibly even dismantling entire departments and agencies—become a reality, an already vulnerable labour market may suffer.

Yet investors are still largely unfazed. It is difficult to see a near-term trigger that could temper bullish sentiment, but equity markets are at their most expensive valuation ever along several key metrics.

Read the full report here.