Businessman Mikey Sano (マイキー佐野) pointed to the link between seasonal patterns and investor sentiment as a reason stock markets tend to weaken in September. He also discussed how earnings cycles coincide with seasonal fund flows and referred to the impact of midterm election-period volatility on the market.
Businessman Mikey Sano (マイキー佐野) brought into focus the seasonal pattern of stock markets tending to weaken each September and the investor sentiment associated with it.
He explained that earnings cycles and seasonal fund flows coincide, creating downside pressure.
There has been an indication that volatility increases around midterm elections, suggesting that changes in the investment environment may have an impact.
The discussion also covered the impact of a divided Congress and market trends after the election, but no specific conclusion was presented.