Small and mid cap area is a place for significant growth, says Aperture's Peter Kraus

Market Overview & Potential Risks - S&P 500 achieved a strong quarter, up over 10%, the best since 2023, but uncertainty remains regarding its sustainability [1] - Potential for higher tariffs on countries failing to reach deals by July 8th and 9th could negatively impact the market [2][3] - Market anticipates accommodations on tariffs, believing the drama is overdone, but negative reactions are expected if progress stalls [4][5] - Historically, September and October often bring dramatic events, potentially creating buying opportunities [9] Fiscal Stimulus & Economic Impact - Expected passage of a bill providing 33 trillion or 23 trillion (depending on calculation) in additional deficit is seen as stimulative for the economy [7] - The stimulus, including lower taxes, is expected to benefit the economy and be reflected in the market [7] Technology Sector & Investment Strategies - AI is considered a promising area with long-term potential, but identifying specific winners is challenging [10][11] - Concerns exist about over-allocation to large tech companies and the growing risk associated with these large assets [11] - The industry suggests diversification and a focus on domestically oriented mid-cap and small-cap companies, which have lagged in the past 5 years [11][12] - Small cap companies have shown resilience, with the Russell 4000 outperforming the S&P since "liberation day" [14] Small and Mid-Cap Opportunities - Small and mid-cap areas are considered underinvested and offer potential for significant growth [15] - Investors lacking exposure to small and mid-caps are advised to consider adding them to their portfolios [15]