--- title: Investors Turn to Alternative Assets as Stock Market Braces for 'September Effect' description: While stocks often fall in September, it's not necessarily a bad sign, even though safe-haven assets are gaining. authors: - name: Martha C. White role: Writer url: https://money.com/author/martha-c-white/ education: BA, English, Princeton University at_money_since: 2015 articles: 348 covers: - Investing - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Federal Reserve Rate Cuts - Health and Wellness - Housing - Identity Theft - Insurance - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes - Technology editors: - name: Katherine Peach role: Associate Editor url: https://money.com/author/katherine-peach/ bio: Katherine Peach is an associate editor with a focus on news and email at Money. She didn’t always intend to write about money. She’s a classically trained pianist who dreamed of becoming an archaeologist. However, in 2007 Katherine began working in financial publishing as an editor for Agora Inc. (Apparently, unearthing ideas about improving your personal finances isn’t such a bad career alternative!) Katherine’s writing and editing work has been featured in Investing Daily, Clever, Investor Junkie, The Palm Beach Letter, Truth & Plenty, Independence Monthly, NICHE, AmericanStyle, AntiqueWeek, Millennial Money, Money Done Right, TheStreet, Sure Dividend and many others. Katherine holds a Bachelor of Arts in Ancient Studies with concentrations in Archaeology and Ancient Languages and a minor in Literature from the University of Maryland, Baltimore County. She is a member of Phi Beta Kappa. education: University of Maryland, Baltimore County at_money_since: 2025 articles: 14 covers: - Investing - Banking - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Federal Reserve Rate Cuts - Health and Wellness - Housing - Identity Theft - Insurance - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes published: '2025-09-08T18:52:26.000Z' modified: '2025-09-08T18:52:26.000Z' section: Investing tags: - News word_count: 990 canonical: https://money.com/stocks-brace-for-september-slump/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![A businessman looks up at a chart as an arrow breaks through a chart level that indicates increasing sales](https://img.money.com/2025/09/News-September-Stocks-2025.jpg) When September rolls around, it's not just the leaves that start falling. T.S. Eliot [famously wrote](https://www.goodreads.com/quotes/23834-april-is-the-cruelest-month-breeding-lilacs-out-of-the) that April is the cruelest month, but on Wall Street, September holds that distinction. According to [RBC Wealth Management](https://www.rbcwealthmanagement.com/en-us/insights/nothing-new-about-september-slides-for-stock-markets), data going back to 1928 shows that stocks decline by an average of 1.2% in September. Theories to explain the September slump abound, from institutional investors rebalancing portfolios to decision-makers returning from summer vacation. Market pros don’t put too much stock in any of them, though. They also advise against knee-jerk responses to seasonal fluctuations. ## Make sure your hard-earned money is protected with a Gold IRA ### Gold IRAs help you protect your investments by providing the asset diversification and stability you need. Click on your state to get started. [Invest in Gold](https://money.com/pr/ued87e7966ca?ap_referrer=%2Fstocks-brace-for-september-slump%2F) “There’s no fundamental reason why September should be worse. The reality is it was a statistical quirk that’s become a self-fulfilling prophecy with algorithmic trading,” says Ross Mayfield, investment strategist at Baird. Still, even if this September turns into a bumpy ride for investors, Mayfield points out that a seasonal slump doesn't necessarily suggest that the market will sour in 2025. What's more, historical patterns show a correlation between the final few months of the year and market buoyancy. "If fall tends to be a rockier time for a market, the end of the year tends to be the best time of the year to be in markets. Our view on financial markets is that momentum tends to beget momentum," he says. Recent data showing [downbeat investor sentiment](https://money.com/stock-market-highs-investors-bearish/) also isn't consistent with a frothy, market-bubble mentality, lending credence to the theory that a tumble would likely be temporary. "I don't sense a euphoria that would signal we’re at a market top," Mayfield says. ## Why are investors piling into alternative assets? While September might be bumpy for stocks, alternative assets are riding a wave of high demand — a trajectory analysts say is likely to persist. “We see this trend continuing to play out in the years ahead," Christian Magoon, CEO of Amplify ETFs, tells Money via email. Blame the U.S. dollar’s position as the world’s de facto reserve currency — along with our national debt. Investors anticipate that officials will continue relying on debt issuance to finance government operations and subsequently lower interest rates to make servicing that debt less expensive. "Those moves push investors to own assets that can’t be devalued by central bankers,” Magoon says. A literal and figurative shining example is gold: The per-ounce spot price of the yellow metal definitively broke the $3,500 barrier for the first time earlier this month and has gained more than 34% this year. Analysts attribute **this run-up** to safe-haven investors seeking an alternative to bonds ahead of expected Fed rate cuts — an assumption heightened by the [weak August jobs report](https://www.cnbc.com/2025/09/05/jobs-report-august-2025.html) released Friday — that could fuel higher inflation. Experts [now say](https://money.com/fed-rate-cut-september-experts-predict/) the most likely scenario is a rate cut in September, followed by a second one later this year. About 10% of market observers even expect a super-sized half-percentage point rate cut this month, rather than the more typical increment of a quarter of a percentage point. The futures market puts the probability of rates dropping by at least three-quarters of a percentage point this year at 80% — double what it was prior to the release of the jobs report. “I think gold is a reflection globally of fiscal worries and the belief that inflation will be allowed to run hotter," says David Stubbs, chief investment strategist at AlphaCore Wealth Advisory. Gold is a traditional investing hedge against inflation, and high inflation erodes the purchasing power of bond yields. Gold-adjacent products like gold-backed exchange-traded funds (ETFs) have seen greater inflows stemming from these sentiments. Silver has also [benefitted](https://www.marketwatch.com/investing/future/si00) from this dynamic: It is up roughly 42% for the year. Precious metals aren’t the only alternative assets gaining value in this climate. Flagship cryptocurrency bitcoin**,** along with altcoins like ethereum and even [meme coins](https://money.com/meme-coins-how-to-find-them-and-where-to-buy-them/)**,** have seen [strong gains](https://money.com/are-these-the-next-cryptos-to-1000x/) this year. Although bitcoin has retreated from its August [record](https://www.cnbc.com/2025/08/14/crypto-market-today.html) of nearly $125,000, analysts expect this asset class to benefit from continued strong demand. “Both \[bitcoin and ethereum\] are well-positioned to challenge fresh record highs before year-end,” LMAX Group strategist Joel Kruger told [*Barron’s*](https://www.barrons.com/articles/bitcoin-price-xrp-ethereum-crypto-figure-ipo-88c6e65a). Analysts are quick to point out, though, that cryptocurrency is in a class of its own even among alternative assets due to its extreme volatility and lack of intrinsic value. Its evolving stance — and newfound popularity — in Washington is also a significant tailwind. "The change in tone, in regulatory oversight, has been huge," Stubbs says. ## What should ordinary investors do? If you're wondering what you should do to avoid taking a hit if stocks dip this fall, the answer is simple: nothing that’s not part of your financial plan, according to Baird's Mayfield. “It’s definitely a time where you just expect higher volatility, but I never advocate for making decisions with seasonality being the main thesis,” he says. While it might be tempting to try timing the market, pros advise against attempting to trade your way out of a slump. Most investors will be best served by being patient and waiting out a seasonal swoon. “It’s something to bake into your expectations," Mayfield says. "Getting out of the market is probably the wrong move.” The caveat to this advice is that it applies only if recent market gains have distorted your asset allocations. "This year, you have markets at all-time highs, [valuations are high](https://money.com/are-u-s-stocks-overvalued-everyday-investors-and-experts-disagree/) and the market is concentrated," says Thomas Martin, senior portfolio manager at Globalt Investments. "I think investors should look carefully at their positioning and ask, ‘Am I truly diversified?’” Having too much of your nest egg in tech-heavy growth stock funds could leave you exposed if earnings fail to live up to these stocks' outsized valuations, he warns. "When that part of the market has a decline, it’s usually worse and more abrupt," he says. ### Top Precious Metals Company on Inc. 5000 ![Invest in Gold](https://s3.consumersadvocate.org/prd/image/image/19305/medium_414558a1-29d4-465e-b5d1-921febc39ed2.png) Our Partner [Invest in Gold](https://money.com/go/49eaadb8a1a2?bidid=4018893640&ptid=660939107&ptoken=436ec64dd9e29324851974db6c358bd1) ### Endorsed by Robert Kiyosaki — Up to $25K in FREE Silver on Qualifying Purchases ![Invest in Gold](https://s3.consumersadvocate.org/prd/image/image/24353/medium_69e2748f-b29f-4686-895b-4e103b4d0c3e.png) Our Partner [Invest in Gold](https://money.com/go/055f208ef315?bidid=4018893642&ptid=660939107&ptoken=a6fe076cda6de0b84a6b80c394abaefa) ### Qualify for up to 10% in FREE silver ![Invest in Gold](https://s3.consumersadvocate.org/prd/image/image/21155/medium_2ce64332-874c-41c0-a3b9-7f738e834f1c.png) Our Partner [Invest in Gold](https://money.com/go/88c88e82a85f?bidid=4018893638&ptid=660939107&ptoken=30ca6b0a33ac404ccada7bc71f9ac769) ![](https://s3.consumersadvocate.org/prd/image/image/19305/medium_414558a1-29d4-465e-b5d1-921febc39ed2.png) American Hartford Gold can help you take control of your financial future [Invest in Gold](https://money.com/pr/cdf8db27d320?ap_referrer=%2Fstocks-brace-for-september-slump%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/stocks-brace-for-september-slump/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Investing", "item": "https://money.com/investing/" }, { "@type": "ListItem", "position": 3, "name": "Stock Market", "item": "https://money.com/stock-market/" }, { "@type": "ListItem", "position": 4, "name": "Investors Turn to Alternative Assets as Stock Market Braces for 'September Effect'" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/stocks-brace-for-september-slump/#webpage", "url": "https://money.com/stocks-brace-for-september-slump/", "name": "Investors Turn to Alternative Assets as Stock Market Braces for 'September Effect'", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2025-09-08T18:52:26.000Z", "mainEntity": { "@id": "https://money.com/stocks-brace-for-september-slump/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/stocks-brace-for-september-slump/#breadcrumb" }, "dateModified": "2025-09-08T18:52:26.000Z" }, { "@type": "NewsArticle", "headline": "Investors Turn to Alternative Assets as Stock Market Braces for 'September Effect'", "articleSection": "Investing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2025/09/News-September-Stocks-2025.jpg", "width": 2516, "height": 1677, "caption": "News-September-Stocks-2025" } ], "author": [ { "@type": "Person", "name": "Martha C. White", "url": "https://money.com/author/martha-c-white/", "@id": "https://money.com/author/martha-c-white/#author", "image": "https://img.money.com/2014/01/martha.png?w=350&h=430&crop=1", "jobTitle": "Writer", "alumniOf": "BA, English, Princeton University", "worksFor": { "@id": "https://money.com/#organization" } } ], "publisher": "https://money.com/#organization", "datePublished": "2025-09-08T18:52:26.000Z", "description": "While stocks often fall in September, it's not necessarily a bad sign, even though safe-haven assets are gaining.", "abstract": "While stocks often fall in September, it's not necessarily a bad sign, even though safe-haven assets are gaining.", "@id": "https://money.com/stocks-brace-for-september-slump/", "inLanguage": "en-US", "dateModified": "2025-09-08T18:52:26.000Z", "editor": [ { "@type": "Person", "name": "Katherine Peach", "url": "https://money.com/author/katherine-peach/", "@id": "https://money.com/author/katherine-peach/#author", "description": "Katherine Peach is an associate editor with a focus on news and email at Money. She didn’t always intend to write about money. She’s a classically trained pianist who dreamed of becoming an archaeologist. However, in 2007 Katherine began working in financial publishing as an editor for Agora Inc. (Apparently, unearthing ideas about improving your personal finances isn’t such a bad career alternative!)\r\n\r\nKatherine’s writing and editing work has been featured in Investing Daily, Clever, Investor Junkie, The Palm Beach Letter, Truth & Plenty, Independence Monthly, NICHE, AmericanStyle, AntiqueWeek, Millennial Money, Money Done Right, TheStreet, Sure Dividend and many others.\r\n\r\nKatherine holds a Bachelor of Arts in Ancient Studies with concentrations in Archaeology and Ancient Languages and a minor in Literature from the University of Maryland, Baltimore County. She is a member of Phi Beta Kappa.", "jobTitle": "Associate Editor", "alumniOf": "University of Maryland, Baltimore County", "worksFor": { "@id": "https://money.com/#organization" } } ], "wordCount": 990, "keywords": [ "News" ], "about": [ { "@type": "Thing", "name": "Investment", "sameAs": [ "https://en.wikipedia.org/wiki/Investment" ] }, { "@type": "Thing", "name": "Stock market", "sameAs": [ "https://en.wikipedia.org/wiki/Stock_market" ] } ] } ] } ```