In September, the S&P 500's performance has been led by defensive sectors, continuing a trend from August. This rotation into later cycle sectors and industries indicates a more risk-averse market environment. Traditional defensive sectors, such as utilities, financials, healthcare, and consumer defensive stocks, have been outperforming. This shift has been ongoing for almost two months, with value stocks supporting the market. Despite a generally positive economic outlook, the most defensive sector of the S&P 500 has become the year's top performer. The market has seen a rotation out of tech and into value stocks. The September investment manager index shows a significant increase in risk aversion and bearishness over the next 30 days, driven by political uncertainty overshadowing anticipated interest rate cuts from the Federal Reserve.