Core Insights - The article highlights a widening gap between momentum and quality in the small-cap ETF landscape, particularly focusing on the iShares Russell 2000 ETF (IWM) as an outperformer [1] Group 1: ETF Performance - The iShares Russell 2000 ETF (IWM) has shown strong performance compared to its peers, indicating a trend favoring momentum over quality in small-cap investments [1] Group 2: Market Dynamics - The analysis suggests that investors may need to reassess their strategies in light of the diverging performance metrics between momentum and quality-focused ETFs [1]

Core Insights - The article discusses the performance comparison between two BlackRock ETFs in the small-cap sector, highlighting a growing disparity between momentum and quality strategies in investment [1]. Group 1: ETF Performance - The iShares Russell 2000 ETF (IWM) has recently outperformed its peers, indicating a strong momentum in the small-cap market [1].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Blue Owl Capital Inc. due to allegations of violations of federal securities laws, particularly concerning misleading statements and undisclosed liquidity issues [2][4]. Group 1: Legal Investigation and Class Action - The firm is encouraging investors who suffered losses in Blue Owl between February 6, 2025, and November 16, 2025, to discuss their legal rights [1]. - A federal securities class action has been filed against Blue Owl, with a deadline of February 2, 2026, for investors to seek the role of lead plaintiff [2]. - The lead plaintiff is defined as the investor with the largest financial interest in the relief sought, who will oversee the litigation on behalf of the class [7]. Group 2: Allegations Against Blue Owl - The complaint alleges that Blue Owl and its executives made false or misleading statements and failed to disclose significant issues, including pressure on its asset base from BDC redemptions and undisclosed liquidity problems [4]. - The company is reportedly facing the likelihood of limiting or halting redemptions of certain BDCs due to these issues [4]. Group 3: Market Impact and Investor Concerns - An article published by the Financial Times indicated that Blue Owl has blocked redemptions in one of its private credit funds, which could lead to significant losses for investors [5]. - Following the news of the merger and redemption restrictions, Blue Owl's stock price fell by $0.85, or 5.8%, closing at $13.77 per share on November 17, 2025 [6]. - Investors in Blue Owl Capital Corporation II will lose the ability to redeem cash at the fund's Net Asset Value (NAV) after the merger, as they will exchange shares for publicly traded Blue Owl shares, which are trading approximately 20% below NAV [6].

Core Insights - The article emphasizes the importance of reliable dividend stocks as a means for investors to secure a growing income throughout the year, suggesting that even growth-oriented investors should consider adding dividend-paying stocks to their portfolios [2]. Company Summaries PepsiCo - PepsiCo is highlighted as a strong dividend stock with a forward-looking dividend yield of nearly 4%, despite recent stock underperformance [6][7]. - The company has faced rising costs due to inflation, impacting profits, but is expected to see sales growth accelerate to 3.6% in the coming year, which could lead to faster earnings growth [9]. - PepsiCo's recent acquisitions, such as the prebiotic soda brand Poppi, are part of its strategy to enhance its brand portfolio and market relevance [8]. Chevron - Chevron is presented as a major player in the oil industry, with a reported revenue of $203 billion and a net income of nearly $18 billion last year, indicating strong financial health [12]. - The company can maintain its dividend and capital expenditures even if oil prices drop to $50 per barrel, showcasing its cost-effective operations [12]. - Chevron has a track record of 38 years of uninterrupted annual dividend growth, with a forward-looking yield of just under 4.6% [13]. Brookfield Asset Management - Brookfield Asset Management is noted for its diverse investment portfolio, including infrastructure, renewable energy, and private equity, which positions it well for future growth [15]. - The company manages over $1 trillion in assets and has a target revenue growth of 15% to 20%, supporting its dividend growth [16]. - With a current dividend yield of 3.27% and a payout ratio of approximately 90%, shareholders can expect their dividend income to grow in line with the company's revenue growth [17].

Core Viewpoint - A class action securities lawsuit has been filed against Blue Owl Capital Inc. due to alleged securities fraud affecting investors between February 6, 2025, and November 16, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that Blue Owl Capital Inc. faced significant pressure on its asset base from redemptions by business development companies, leading to undisclosed liquidity issues [2]. - It is alleged that the company may limit or halt redemptions of certain business development companies, which contradicts the positive statements made by the defendants regarding the company's business and prospects [2]. Group 2: Investor Information - Investors who suffered losses during the specified timeframe have until February 2, 2026, to request appointment as lead plaintiff, although participation in any recovery does not require serving as a lead plaintiff [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees, ensuring no financial obligation to participate [3]. Group 3: Legal Representation - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years and consistently ranking among the top securities litigation firms in the United States [4].

Core Insights - The Trump administration is introducing "Trump accounts" aimed at helping children save for the future, with details released by Treasury Secretary Scott Bessent [1][5] Group 1: Account Setup and Management - Trump accounts can be opened during tax filing using Form 4547 or through the website trumpaccounts.gov, with a draft of the form already available for public review [2] - Each child can have only one account, which is owned by the child but managed by a qualified guardian or family member [3] - Accounts can be opened for eligible children starting with 2025 tax filings or via the online portal launching in summer 2026 [3] Group 2: Account Functionality and Benefits - Upon reaching 18, the account operates like a traditional IRA, allowing for tax-advantaged withdrawals for education or home purchases, while other withdrawals may incur a 10% penalty [4] - Children born between 2025 and 2028 will receive a $1,000 federal grant that does not count towards the $5,000 annual contribution limit, with accounts available for any minor [5] Group 3: Industry Response and Additional Contributions - Companies like BNY Mellon and BlackRock are matching the federal grant for their employees' children, while philanthropists like Michael Dell and Ray Dalio have made personal contributions [7] - 20 states are considering additional contributions that would not affect the annual limit, potentially linked to financial literacy courses [8]

Core Viewpoint - Janus Henderson Group plc (NYSE:JHG) is set to be taken private by Trian Fund Management and General Catalyst for an equity value of $7.4 billion, or $49 per share, reflecting a premium over recent stock prices [2][4]. Group 1: Acquisition Details - The acquisition price of $49 per share represents a 6.5% premium to the stock's closing price on December 19 and an approximately 18% premium to the closing price on October 24 [4]. - The deal is expected to close in mid-2026, with Trian having been an investor in Janus since late 2020, during which time the stock has roughly doubled [4]. Group 2: Market Analysis - Evercore ISI lowered its price target for Janus Henderson to $49 from $50, maintaining an In Line rating, indicating that the acquisition price may not reflect the highest possible multiple for the company [2][3]. - The firm noted that while Janus has experienced six consecutive quarters of organic growth, there is no guarantee this trend will continue, making the transition to a private company appealing for its potential operational flexibility [3]. Group 3: Company Overview - Janus Henderson Group is a British-American global asset management firm headquartered in London, providing investment products to individual investors, financial advisors, and institutions worldwide under the Janus Henderson Investors brand [5].

The S&P 500 is closing out 2025 with a rare and powerful show of momentum. As of Dec. 26, the benchmark index is up nearly 1% for the month, positioning itself for an eighth consecutive month of gains — a streak not seen since 2017 and achieved only a handful of times in the post-war era.The index of the 500 largest U.S. companies, tracked by the Vanguard S&P 500 ETF (NYSE:VOO) , still has three trading sessions left before the year ends. If it holds onto these gains, the rally that began last May will offi ...

Core Viewpoint - GMO's Ben Inker predicts weak returns for the S&P 500 due to high concentration in expensive AI stocks, suggesting a market rotation towards cheaper sectors in 2026 [1][5]. Group 1: Market Predictions - Inker anticipates that the S&P 500 is more likely to experience single-digit percentage losses by 2026, rather than a significant collapse [3]. - The firm does not foresee a mega bubble, as speculation appears to be largely confined to AI stocks, unlike the widespread overvaluation seen in previous market bubbles [4]. Group 2: Investment Opportunities - Inker highlights that while AI stocks are overvalued, there are still attractive investment opportunities in non-AI sectors, particularly in Japanese small-cap stocks and European value stocks [4][5]. - The expectation is that as AI stocks underperform, investors will shift their focus to these cheaper stocks, which may lead to a drag on the overall index [2][3].

Economic Outlook - The economy is showing signs of improvement, with several positive factors contributing to growth expectations [1][2] - Key tailwinds include the implementation of a significant bill that allows for immediate expensing of capital expenditures, lower oil prices, a declining dollar, and the diminishing impact of the trade war [2][4] Consumer and Corporate Impact - The new bill enables companies to write down 100% of their capital expenditures immediately, which is a departure from the usual multi-year write-off process [3] - Consumers are expected to benefit from larger tax refunds in 2026, projected to be 50% greater than those in 2025, further supporting economic growth [4] Market Dynamics - The current market valuation may not fully reflect the positive economic outlook for 2026, as growth is heavily concentrated in a few large AI-related stocks, which constitute 40% of the index [6] - The AI narrative is influencing not only equity markets but also the public investment-grade credit market, which is increasingly dominated by hyperscaler issuances [7] Risks and Concentration - While growth prospects are favorable, there is a risk that if the AI sector underperforms in 2026, it could negatively impact both equity and credit markets despite overall economic growth [8]