But my next guest sees the index heading higher ultimately into year end. Let's bring in macro risk advisors John Kovvis. John, it's uh it's great to catch up with you here.I mean, we're, you know, S&P bleeding lower here down about 8/10 of 1% and there was some excitement when we got that breakout above 6,800. It seemed pretty emphatic. Where does this leave us uh as we just kind of give back some of those recent gains.>> Hey Mike, good to see you again. Uh, I think ultimately until we break the October lo ...

Core Insights - Small caps are generally US-based companies with a majority of sales from the US, contrasting with large caps that have a higher percentage of foreign sales [1] - In times of geopolitical uncertainty, investors may prefer small caps as a hedge due to the perceived stability of the US economy [1] Company Summaries MIND Technology, Inc. (MIND) - MIND Technology is based in The Woodlands, TX, providing technology solutions for oceanographic, hydrographic, seismic, and maritime security industries [3] - For the six months ended July 2025, over 56% of MIND's revenue came from Norway, highlighting its reliance on international sales [3] - In Q2 fiscal 2026, MIND reported a net income of $0.24 per share, a turnaround from a net loss of $0.11 per share in the prior year, with revenues of $13.6 million, a 35% increase from $10 million year-over-year [4] Perma-Pipe International Holdings, Inc. (PPIH) - PPIH, headquartered in Rolling Meadows, IL, specializes in manufacturing specialty piping systems and leak detection systems [6] - The company has received approval from Aramco, expanding its total addressable market and aligning with Saudi Vision 2030 objectives [7] - In Q2, PPIH reported net sales of $47.9 million, a 27.7% increase from $37.5 million in the same period last year, driven by stronger sales in the Middle East and North America [8] - As of FY ending January 31, 2025, 67% of PPIH's sales were to foreign customers, indicating a significant international market presence [8]

Core Insights - Mega-cap technology stocks have dominated the market in recent years, significantly outperforming smaller companies [4] - Current late-cycle dynamics and easing monetary conditions may signal a potential shift in market performance, favoring smaller companies [4] Group 1 - The strong performance of mega-cap technology stocks has left small companies lagging behind [4] - The changing economic environment could provide opportunities for smaller companies to catch up [4]

Market Imbalance & Diversification - The technology sector holds an all-time high of approximately 35% weight within the S&P 500 index, while defensive sectors (staples, healthcare, energy, and utilities) are at an all-time low of just 19% [3] - Investors are seeking diversification beyond the S&P 500 index due to increasing concentration, exploring options like small caps (Russell 2000 IWM ETF) and international investments for value [6][9] ETF Trends & Strategies - There's significant interest in income-generating products, particularly those utilizing derivatives, to meet the needs of investors, especially retirees [11][13] - Innovation in income strategies involves moving beyond traditional covered calls to more sophisticated approaches like selling call spreads and active management to unlock more upside [14][15] - Thematic ETFs, particularly those related to AI, are experiencing a resurgence, attracting attention and growth in the ETF market [19][20] Future Outlook - The leveraged ETF space (3x and 5x products) is gaining attention, raising questions about its potential impact on financial markets [16][17] - Healthcare sector is considered an interesting area for potential investment, offering both growth and value opportunities [17][18]

All right. So, what do you make of the action that we saw yesterday. I think I want to start off with the small caps hitting another record yesterday.What does that say about the market right now and the fact that investors are going into small caps, what we thought was a catch-up trade, uh, looking for, I guess, gains. What What do you think they're looking for there. >> I I think it's great.You're looking for something cheaper than the mega cap tech, right. You're looking for something that hasn't moved u ...

Was Friday's air pocket a oneanddone dip or did it open the way for a more choppy phase of this three-year bull market. Let's ask New Edge Wealth Chief Investment Officer Cameron Dawson. Cameron, good to see you here. Good to see you.So, let's do some tape reading, I guess. How are we thinking about this. We had this unusually calm, steady climb toward all-time highs.We finally get barely a 3% pullback. And now the market is kind of trading in that range, indecisive. Yeah, we've been stuck just within that ...

Small Cap Market Overview - Small caps have been underperforming for the last couple of years, but are entering a potentially favorable period with anticipated revenue acceleration [2] - Lower interest rates are generally favorable for small caps, but tariff concerns pose a challenge due to smaller companies' potentially limited ability to manage them [1] - Tax certainty and deregulation can counterbalance the negative impacts of tariffs [3] - Capital markets are open for both equity and debt, and M&A activity is a tailwind for the asset class [4] - Rate cuts by the Federal Reserve may drive money into equity markets, potentially benefiting small caps due to their tighter liquidity [6][7] Company Specifics - Generac is favored due to its data center play involving diesel backup generation, with new products competing with incumbents in a market with sizable demand for backup power [9] - Badger Meter, a water meter business, is attractive due to meter replacement cycles and infrastructure buildout [10] - Adtran is considered a good value play, poised to benefit from increased investment in rural broadband buildout [10] Potential Risks and Uncertainties - Tariffs remain an impact for many companies, and they desire more certainty, especially regarding China tariffs [4]

Core Viewpoint - Small caps are experiencing a breakout due to lower interest rates on the horizon, contrasting with their previous underperformance compared to tech stocks [1] Group 1: Technical Analysis - The Russell 2000 Index ETF (IWM) is attempting to break out of a four-year base structure that began in October 2021, with historical breakouts resulting in gains of 30% or more over the next 1-2 years [1] - Technical targets suggest that IWM could reach approximately $300, which is 19% higher than current levels, based on Fibonacci extensions [6] - An alternative target calculation indicates a potential move to around $312 by adding the difference between the high and low of the base to the breakout [8] Group 2: Relative Strength - IWM is showing relative strength compared to the Nasdaq 100 Index ETF (QQQ), having retaken recent highs while QQQ remains below them, indicating a potential leadership role for IWM in the US equity market [9] Group 3: Performance of Components - Top holdings within IWM, such as IonQ (IONQ), Oklo (OKLO), and Credo Technology (CRDO), are performing strongly and may contribute to the breakout [11] Group 4: Market Conditions - After years of lagging behind large-cap peers, small caps are positioned for a significant upward movement, supported by a multi-year base, improving technical signals, relative strength, and favorable macro conditions [12]

Market Overview - The S&P 500 is on track to end a 7-day winning streak after reaching a new all-time high [1] - Since April 8th, the market has experienced significant gains, driven by strong earnings that exceeded expectations, particularly in the context of AI advancements [2] Valuation Concerns - Current valuations appear stretched, raising questions about how much positive news is already priced in [3] - While not indicating a bubble, there is a caution regarding the sustainability of these valuations [3] Portfolio Strategy - It is suggested to rebalance portfolios by taking profits from high-performing sectors and reallocating to underperforming areas such as healthcare and small caps [4][5] - The focus should be on sectors where sentiment is less stretched, despite the potential for further gains in the current market [5] Earnings Outlook - Strong earnings growth is anticipated, particularly in the financial sector and among mega-cap tech companies, with growth rates above 20% expected [6] - The earnings story is expected to remain positive, which could support continued investment in cyclical stocks despite economic concerns [8] Economic Indicators - There is a high probability (92%) of a rate cut this month, with an 88% chance of another cut in December, indicating a shift in monetary policy [10] - Concerns about inflation persist, but small caps are expected to perform well in this environment [10] Year-End Expectations - The S&P 500 is not expected to experience a sell-off before year-end, with strong earnings supporting continued market strength [11] - The upcoming Q3 earnings season will be crucial in determining the market's trajectory, with potential for upside surprises [11][12]

Infrastructure & Computing - Track post-deal compute spend and infrastructure plays [1] - Evaluate decentralized GPU capacity & treasuries [1] User Growth & Integration - Watch agent integrations and early user growth [1] Market Trends - Monitor listing-driven momentum in small caps (关注小型股中由上市驱动的增长势头) [1]