Hear from our Blackwattle Head of Distribution and Partner Maggie Mills as she discusses Market Insights for August.

Insight 1: Beneath the Index, a Different Market? 

The ASX 200 returned one and a half per cent in August, a fifth straight month of gains. But underneath, the top 20 stocks actually fell, while small caps rose more than five per cent. The gap between the best and worst sectors was over twenty per cent.

Health Care was the standout, up nearly nineteen per cent. A year ago it was the worst sector in the market. Consumer Discretionary went the other way, down about eight per cent, with retailers talking about a battered consumer. And the big banks fell hard on stretched valuations.

The takeaway: the index return told you almost nothing about August. What you owned, and what you avoided, made the difference.

Insight 2: Rates are Volatile 

July inflation came in hotter than expected at three and a half per cent, and the RBA made it clear it remains worried. Over the month, the market went from pricing half a rate hike for 2026 to more than one.

It’s a global story. Long-term bond yields in the US, Germany and Japan hit multi-year or multi-decade highs, and the new Fed Chair used Jackson Hole to push back on any talk of easing.

The takeaway: higher borrowing costs are already showing up in company results, and in the housing market. We think investors should be positioned for rates staying higher for longer, not hoping for cuts.

Insight 3: Valuations Matter 

CBA delivered a perfectly sound result in August. Profit up seven per cent. The stock still fell almost eight per cent, because it was trading on the highest major bank multiple in the world. When you’re priced for perfection, sound isn’t enough.

At the other end, takeover interest arrived at big premiums where value had built up, and gold rallied almost ten per cent as investors looked for real assets.

The takeaway: after a long stretch where the market seemed to ignore valuations, suddenly they matter.

For more insights visit blackwattlepartners.com or follow us on LinkedIn.