Lin Liu @Linsanity1: "𝗦𝗲𝗽𝘁𝗲𝗺𝗯𝗲𝗿 𝗨𝗽𝗱𝗮𝘁𝗲 September has been a..."

Austria

𝗦𝗲𝗽𝘁𝗲𝗺𝗯𝗲𝗿 𝗨𝗽𝗱𝗮𝘁𝗲 September has been a record month! It’s been our best month of 2025. We’re now up well over 15% so far in September. The bigger picture remains very bullish. Although September has been historically the weakest month of the year, it didn’t matter. The bull market shrugged it off and kept moving higher. 𝗔𝗹𝗹-𝗧𝗶𝗺𝗲 𝗛𝗶𝗴𝗵𝘀 𝗮𝗿𝗲 𝗕𝘂𝗹𝗹𝗶𝘀𝗵 September is now closing with the S&P 500 logging five straight months of gains. In fact, September saw eight new all-time highs. That is not something to fear; it is something to respect. New highs are one of the most bullish signals you can get. History shows that when September makes new highs, the fourth quarter is higher 90% of the time. Few things in markets are as powerful as all-time highs. This is also why the S&P 500 closing September with a five-month winning streak matters. Every time in history the index has gone on a run like that, the following year has been higher nearly every time, with an average gain of over 12%. There is no sign that this bull market is ending soon. Of course, it will end one day, just like every bull and bear market, but right now there is still plenty of room left to run. At the same time, we will get a pullback at some point. That should not be viewed as a negative. Pullbacks are normal and healthy inside bull markets. Dips during this period often create the best opportunity ahead of the strongest time of the year: the fourth quarter and the year-end rally. 𝗦𝗲𝗺𝗶𝗰𝗼𝗻𝗱𝘂𝗰𝘁𝗼𝗿𝘀 𝗟𝗲𝗮𝗱 𝘁𝗵𝗲 𝗪𝗮𝘆 The playbook has not changed. Leaders continue to lead and laggards continue to lag. Outperformance comes from owning the strongest sectors, not the weakest. That is where the biggest winners always come from in bull markets. This market is also not overbought. There are isolated areas of speculation, but this is not broad market euphoria. Market tops in the past looked very different. If there is one sector to keep your eye on, it is semiconductors. Time and again, they have been the best guide for the market. They just ended the week at fresh all-time highs. I think you know what that’s telling us. 𝗘𝗮𝗿𝗻𝗶𝗻𝗴𝘀 𝗣𝗼𝘄𝗲𝗿 Since 2019 the S&P 500 is up 125%. Most of that comes from earnings growth and dividends. This is not a bubble. It is earnings power. While some areas of the market look frothy, the main driver of stock prices has been earnings power. Earnings results in the first and second quarters were much better than expected. The third and fourth quarters are setting up the same way. Companies are not only growing revenue, but they are also expanding profit margins. There is actual earnings power and margin expansion. That is after all why stocks rise. Too many have forgotten that. The S&P 500’s forward profit margin is now at a new all-time high. Rising earnings combined with stronger margins is the strongest foundation you can ask for in a bull market. 𝗖𝗮𝘀𝗵 𝗼𝗻 𝘁𝗵𝗲 𝗦𝗶𝗱𝗲𝗹𝗶𝗻𝗲𝘀 At the same time, money market funds now hold a record $ 7.7 trillion. That number has tripled over the past eight years. With rate cuts on the horizon, a lot of that cash will eventually need to move. That is another source of fuel for equities. This is why I have said for months that you cannot fight this bull market. It may be one of the most hated rallies in recent memory, but the strength is undeniable. Every dip has been bought, earnings keep growing, leadership is clear, and liquidity remains abundant. As long as that is the case, you have to lean bullish. $NSDQ100 $SPX500 $NVDA (NVIDIA Corporation) $HOOD (Robinhood Markets Inc.) $TSLA (Tesla Motors, Inc.)

Not investment advice. The author may have financial interests in the mentioned instruments.