Rising Tide
Encouraged by a 25bps rate cut that was interpreted more as “fine tuning” than a specific worry, a rising tide of liquidity lifted assets worldwide in September with nearly every major asset class posting strong gains on the month with notable outperformance in gold perhaps hinting at waning confidence in the US dollar (chart).
September 2025 MTD Return. Source: barchart.com. Click for larger image
Between decent growth, tame inflation and increasing liquidity, stocks have suddenly found themselves in a sweet spot that few had predicted just a few months ago and with further opportunity stemming from technology and regulatory changes, certain sectors like nuclear energy have been turbocharged this year. Designed to search out such opportunities, TCM’s Legacy Navigator (+22.1% YTD) asset allocation strategy has seen notable success in 2025 with the stability of its core risk managed equities allocation enabling a meaningful investment in AI and related themes (chart).
Legacy Navigator YTD performance attribution. Source: TCM. Figures represent the contribution of each theme to the YTD performance of TCM’s largest Legacy Navigator account. Click for larger image.
A live demonstration of how TCM’s Risk Managed Equity strategies were meant to be used, we are especially pleased to see success in Legacy’s strategy of opportunistic “spokes” around a hub of tactical risk management. Of course, no trend moves in a straight line and the current ones will likely be no different. Rather than fear the inevitable bumps in the road, we believe investors should expect and even embrace them as opportunities to profit while others panic. To do so requires a pre-defined plan and for us, this centers around staying tuned to the message from the VIX.