Dear Investor,
Here is the monthly report on the performance of the ESSC system in September 2025. This month was characterized by a strikingly positive trend, despite challenges such as looming government shutdowns and mixed economic indicators. The markets benefited from anticipation of interest rate cuts by the Federal Reserve. September 2025 was a strong month for the US stock markets, with all major indices showing positive returns. This was remarkable, given that September is historically often a weak month for equities. The US indices posted their best September performance in 15 years. The Small Cap Russell 2000 index recorded a gain of 2.9%. ESSC performed slightly better with a gain of 8.8%. As of January 1, 2025, the ESSC system has a gain of +16.32%.
Credo Technology Group Holding Ltd was the best performing stock in the portfolio this month. Pagaya Technologies Ltd was unfortunately the worst performing stock.
At the time of writing, the government shutdown in the United States is a reality. The shutdown is not unique. Since 1976, there have been 21 US shutdowns. The average duration was 8.2 days. During the shutdown, the S&P 500 index rose by an average of 0.3%. Twelve months after the shutdown, the S&P 500 index was on average 12.7% higher. By definition, shutdowns are not negative for US stocks.
October is often a volatile month. The most extreme October in history was, of course, that of 1987. At that time, the stock markets were already declining somewhat. That is not the case now. At the time of writing, the SP-500 index is once again reaching a new all-time high.
Sincerely,
Henry van Ginkel