Small Cap Characteristics & Performance - Small caps constitute approximately 10% of the United States market capitalization [1] - Historically, small caps have outperformed large caps by about 1.5% to 2% per year globally [3] - Small caps are currently trading at about 18 times forward earnings [6] Valuation & Investment Considerations - Small cap valuations are generally in line with their historical averages, offering a potential diversification benefit against high valuations in large cap growth companies [2][5] - Investors often express concerns about increasing valuations, particularly in US large cap companies [5] - A significant portion of small cap returns is driven by a small subset of stocks, making broad diversification crucial [8][9] ETF Strategies & Active Management - Flexibility is key in small cap investing, aiming to hold companies poised for higher expected returns [10] - Companies with high valuations, low profitability, and high balance sheet asset growth tend to underperform by 8% to 10% per year [11] - Some ETFs employ a rules-based approach with exclusions to avoid companies with lower expected returns, differentiating them from traditional index solutions [11][12]

All right, Torson, same question for you as we had for an earlier guest. Uh, Jay Pal said he believes it's going to come in at 2.9%. So, is this is this report actually meaningful if it comes in in line or even cooler.Is the jobs report really the big show when it comes to fed rate cuts. No, this is very, very important because as you said, the setup at the moment is that we have a slowing labor market which Chris Waller talked about yesterday in Miami. Chris Waller even had a footnote in his speech where h ...

Market Trends & Economic Indicators - S&P 500 hitting 6,500 is meaningful, reflecting equity market resilience and the impact of the AI trade [1][2] - Inflation reports, particularly the PCE, are key for the Fed's decision-making and the equity market [3][4] - A potential Fed easing in September could catalyze broader sector rotation and small-cap outperformance [4] - Continued economic strength, as indicated by the GDP report, supports market broadening [7] Sector Performance & Investment Opportunities - Consumer discretionary is the best performing sector this month, followed closely by healthcare [6] - Approximately 75% of consumer discretionary stocks and 80% of financial stocks are trading above their 50-day moving average [7] - Consumer spending is front-loaded, positively impacting near-term earnings for consumer companies [8][9] - A steepening yield curve is a significant driver for the financial sector's rotation [10] Potential Risks & Considerations - Small caps are sensitive to lower interest rates, with 50% of their debt being floating [11] - The market is very data-dependent, relying on both inflation and jobs numbers [5]

All right. So, global M&A is up 36%. US M&A is up 20%.So, we're actually kind of lagging a bit, but this month in particular has been strong. What are the catalysts for the dealmaking we've seen recently. >> We have seen, you know, a really strong August with uh a number of multi-billion dollar transactions from from major US names.And I think many of makers, you know, had been planning on these transactions over the course of the beginning of this year. But with all the news around tariffs, around markets, ...

All right, turning now to the ETF market. We are tracking ETF net flows that are now over $789 billion year to date. We're also tracking the moves above and below the 30-day moving averages for the popular index funds, the spy and the triple Q's.Investors, you can see here buying the dip slightly on the triple Q's following Nvidia earnings yesterday. So this week, the VGIT, the Vanguard Information Technology Index Fund, that saw the top inflows, followed by the IWM, the Eyesshar's Russell 2000 ETF, again, ...

Five things to know ahead of today's opening bell. Shares of industrial giant Caterpillar, they are down in the pre-market. The company says that tariff related costs will be higher than previously forecast.For 2025, CAT is now expecting a tariff hit of between 1.5% and$ 1.8% billion. That's up from its guidance earlier this month of up to$ 1.5% billion. Meanwhile, shares of retailer Gap, they're under pressure.retailer that has Gap and Outer Republic Old Navy brands all saw comp sales increase, but Athleti ...

and your chance to bid on a piece of Hollywood history. More than a thousand movie props are going up for auction next week with an estimated value of $10 million. Memorabilia at auction house pop store is hosting the auction which kicks off next week in LA.Joining us now is Brandon Allinger, the Prop Store COO. Let's uh let's start with what you've got here. Thanks so much for for joining us.The first one we were emailing yesterday to see what what you had up for grabs and uh I asked if you had any James B ...

Let's talk markets and some stocks to watch now with Matt Powers, president and managing partner of P Advisory Group. Um, I want to ask you first of all just about the news of the week because a lot of people have been surprised that the markets were so complacent uh to the news of President Trump saying he's fired Lisa Cook. The questions about Fed independence, about Fed credibility.How high of a bar do you think it is at this juncture to really break the market's confidence. >> Great question. First of a ...

It is time rock. Play this out and then the lightning round is over. Are you ready.Ski D. The light round. Let's go to Jim in Florida.Jim. >> Jim, how you doing. Thank you so much for taking my call.Miami. >> Oh my. I'm thrilled you called in, Jim. I'm thrilled you you're a club member.>> Yes, I am. You better believe it. >> Thank you.Let's go to work together. >> All right, let's do it. Uh, so I'm originally from El Salvador.Uh, and I recently took uh, you know, a small position on a company that I'm wonde ...

What's happening to the stock of GAP this evening. After the close, the retail chain that also owns Old Navy, Banana Republic, and Athletic reported, but let's call it a mixed quarter. GAP posted a two-cent earnings beat off a 55cent basis.Revenue came in slightly weekly expected. Same store sales up just 1% some were looking for two. On the other hand, management looks like it's making real progress on the once aing banana republic.But then management also forecasted problems with President Trump's tariffs ...