Core Viewpoint - A significant market downturn occurred on October 10, 2025, with approximately $2 trillion in market value lost due to President Donald Trump's comments regarding potential tariff increases on Chinese products, leading to heightened fears of a renewed U.S.-China trade war [1][2]. Market Impact - The S&P 500 dropped 2.7%, marking its steepest decline since April, while the Nasdaq Composite fell 3.56%, the Dow Jones Industrial Average decreased by 1.9%, and the Russell 2000 declined by 3% [1]. Investor Sentiment - Prior to Trump's post, investor sentiment was relatively optimistic regarding trade tensions, bolstered by exemptions on key goods like Apple's iPhones. The sudden announcement of potential tariffs disrupted this complacency, causing a significant sell-off in risk-on assets [3]. Winning ETF Areas - **Silver**: The Physical Silver ETF (SIVR) rose by 1.4% due to tightening supply, increased industrial demand, and strong ETF inflows, particularly from sectors like solar, EVs, and 5G [4]. - **Defensive ETFs**: The Active Bear ETF (HDGE) and Cambria Tail Risk ETF (TAIL) increased by approximately 3.1% and 2%, respectively, as investors sought defensive positions amid market volatility [5]. - **Uranium**: The Sprott Junior Uranium Miners ETF (URNJ) and Global X Uranium ETF (URA) saw gains of about 0.8% and 0.7%, respectively, driven by rising demand and supply constraints [6]. - **Municipal Bonds**: The National Amt-Free Municipal Bond Invesco ETF (PZA) and Franklin Liberty Municipal Bond ETF (FLMB) each gained about 0.3%, benefiting from the ongoing Fed rate cuts and favorable SALT deduction legislation [8][9]. - **Vietnam**: The Vaneck Vietnam ETF (VNM) advanced by 1.2% following FTSE Russell's decision to upgrade Vietnam's market classification, which is expected to attract significant investment inflows [10][11].

Core Insights - Heartland Mid Cap Value Fund's portfolio increased by 1.63% in Q3 2025, underperforming the Russell Midcap® Value Index which gained 6.18% due to stock selection issues [1] - The market trends from Q2 accelerated, driven by optimism around the AI boom and rising electricity demand, leading to significant gains in large- and mid-cap growth stocks regardless of their business model quality or valuation [1] Company Analysis: Centene Corporation (NYSE:CNC) - Centene Corporation, a healthcare enterprise, experienced a one-month return of 9.56% but has lost 50.95% of its value over the past 52 weeks, closing at $35.76 per share with a market capitalization of $17.563 billion on October 10, 2025 [2] - Centene was the worst-performing holding for the fund in Q3 2025, facing challenges from a policy-induced risk pool shift in the ACA Healthcare Exchanges, which negatively impacted profit margins and led to a pre-announced earnings cut [3] - The company is taking aggressive pricing actions to restore margins and provided a positive update on its action plan in September, which helped shares recover from a sharp selloff in July [3] - The stock is currently trading at 11 times the 2026 earnings estimates, which appear increasingly achievable based on recent updates [3]

Core Insights - Heartland Mid Cap Value Fund's portfolio increased by 1.63% in Q3 2025, underperforming the Russell Midcap® Value Index, which gained 6.18% [1] - Stock selection was identified as the main factor contributing to the fund's underperformance, as the market favored large- and mid-cap growth stocks driven by optimism around AI and rising electricity demand [1] - The focus on valuations during this period was noted to be potentially detrimental to performance [1] Company Highlights - Lam Research Corporation (NASDAQ:LRCX) was highlighted as a significant holding in the Heartland Mid Cap Value Fund, with a one-month return of 10.20% and a 52-week gain of 53.29% [2] - As of October 10, 2025, Lam Research's stock closed at $131.37 per share, with a market capitalization of $165.662 billion [2] - Lam Research is recognized as a leading supplier of semiconductor capital equipment, crucial for producing advanced integrated circuits in the chip industry [3]

Core Insights - Heartland Mid Cap Value Fund's portfolio increased by 1.63% in Q3 2025, underperforming the Russell Midcap® Value Index which gained 6.18% [1] - Stock selection was identified as the main reason for the underperformance, with a market environment favoring large- and mid-cap growth stocks driven by optimism around AI and rising electricity demand [1] - The focus on valuations during this period was noted as potentially detrimental to performance [1] Company Highlights - D.R. Horton, Inc. (NYSE:DHI) was highlighted as a significant holding, experiencing a one-month return of -11.92% and a 52-week loss of 18.99% [2] - As of October 10, 2025, D.R. Horton, Inc. had a market capitalization of $45.19 billion, with shares closing at $151.58 [2] - D.R. Horton, Inc. was noted as the best-performing holding in the quarter, benefiting from its position as the largest homebuilder in the U.S. with approximately 10% market share [3] Hedge Fund Interest - D.R. Horton, Inc. was held by 64 hedge fund portfolios at the end of Q2 2025, a decrease from 67 in the previous quarter [4] - While D.R. Horton, Inc. is recognized for its investment potential, the company is not among the 30 most popular stocks among hedge funds, with a suggestion that certain AI stocks may offer better upside potential [4]

A spate of unusual deals within the AI ecosystem has recently fueled concern that the AI boom is actually an AI bubble, but some professional market watchers say this isn't 1999—at least not yet. https://t.co/vzyUeRpmvQ ...

Let's talk more markets with Sylvia Dublonsky. Right now she is the CEO and chief investment officer of Defiance ETFs and Silia that's been a pretty constant theme for several months at this point that you know the high end is doing very well that consumers at the lower end of the economy are not. How does that play out in terms of one the economy and what that means for the markets.Secondly, yes, good morning Becky. Well, I think that overall consumer the consumer has res remained pretty resilient and cons ...

Consumer Market Insights - The high-end consumer market is performing well, while lower-end consumers are struggling, indicating a bifurcated consumer landscape [1] - Overall consumer demand remains strong, supported by a resilient job market and potentially steadying inflation, which is driving market growth [2][11] - There is an expectation for increased disposable income among consumers, which could further stimulate market activity [3] AI Investment Trends - The current phase is characterized as the beginning of an AI boom, with AI expected to permeate various market sectors [4] - Capital expenditures (capex) have been increasing, leading to margin efficiencies and cost reductions, particularly benefiting companies like Nvidia [5] - AI investments are anticipated to expand into infrastructure and modern warfare applications, indicating diverse growth opportunities [6][7] Market Sentiment and Earnings Outlook - Market reactions to growth spending can be volatile, with historical examples showing shifts in investor sentiment [8][9] - Earnings season is critical for assessing the performance of major corporations, particularly those heavily investing in AI [10] - Expectations for year-over-year growth in earnings per share (EPS) and revenues for key companies are set at 12% and 14.8% respectively, which could bolster consumer confidence in AI-driven growth [11] Gold and Alternative Investments - The rise in gold prices is attributed to concerns over government debt and currency stability, despite equities also rallying [13][14] - Gold is viewed as a defensive hedge within investment portfolios, alongside cryptocurrencies like Bitcoin, which are also gaining traction among investors [15]

The AI boom is a bubble with benefits (via @opinion) https://t.co/21mbKhawXl ...

The AI boom is counting on a small European city to keep up its momentum — and the pressure is growing to make it work https://t.co/VRNIcnYoo8 ...

Market Overview - The stock market experienced a legitimate pullback, with the Dow dropping 92 points, S&P declining 0.38%, and NASDAQ losing 67 points, indicating a potential for profit-taking after a significant upward trend [1][2]. Selloff Dynamics - The current selloff is characterized by a rally followed by a reversal, leading to early buyers being "underwater," which creates distrust among shareholders who may not want to invest further [3][4]. - Investors who entered the market at high prices may be influenced by bearish sentiments, drawing parallels to past market collapses, such as the dot-com boom [4]. Market Sentiment - There is a persistent narrative that stocks have risen too quickly, with concerns about overvaluation and the potential for a market bubble being common themes throughout market history [5][6].