Core Viewpoint - The article emphasizes the importance of diversifying investment portfolios beyond the concentrated U.S. stock market, especially after a prolonged bull market led by Big Tech [1]. Group 1: Market Performance - Over the past year, broad international stock indexes have outperformed the S&P 500 [2]. - Valuations for large-cap U.S. stocks remain high compared to those in developed markets outside the U.S. [2]. Group 2: Investment Strategies - Investors may consider a momentum strategy as an effective way to gain exposure to non-U.S. stocks [2].

Core Viewpoint - The article discusses the growing trend of programmers engaging in stock trading, highlighting the risks and emotional impacts associated with this behavior, particularly the shift in mindset towards gambling rather than investing [2]. Group 1: Investment Behavior - A recent post on a technical forum reflects a programmer's sentiment about making significant profits from stock trading, leading to a loss of motivation for coding [2]. - Many experienced traders share their painful lessons, with some reporting losses of up to 80% of their earnings due to mistakes, and others losing two years' worth of salary in a single day [2]. - The discussion in the community suggests a warning from seasoned traders about the potential dangers of this speculative behavior, indicating a shift in focus from professional work to trading [2]. Group 2: Financial Risks - The article emphasizes that while programmers' salaries are not limitless, they serve as a crucial safety net in the stock market, and losing focus on their primary job due to trading can lead to financial risks [2]. - It is noted that profits gained without a replicable trading system are merely temporary, and the market can take back these earnings at any time [2].

Core Insights - The ongoing AI-driven rally in tech stocks is raising concerns about a potential market top, suggesting that investors should exercise caution as the rally extends into the second week [1]. Group 1: Market Trends - The AI mania continues to drive tech stocks higher, indicating strong investor interest and market momentum [1]. - There is increasing discourse around the possibility of a market peak, which may signal a shift in investor sentiment [1]. Group 2: Investment Strategy - The focus on high-yield income stocks and funds, such as BDCs, REITs, CEFs, and ETFs, is emphasized for those seeking to enhance retirement income [1]. - The importance of conducting thorough research and due diligence before making investment decisions is highlighted, reflecting a cautious approach to investing [1].

Group 1 - Warren Buffett emphasizes the advantages of using a 30-year fixed mortgage as a financial tool, suggesting it can be beneficial for homeownership [1][2][3] - In 2014, Buffett highlighted that borrowing with a fixed mortgage allows repayment in future dollars that may have less value, framing it as a way to "short the dollar" [2][3] - Historical data shows that U.S. home prices have increased significantly since 1987, with nominal prices up about 410% and inflation-adjusted gains around 77%, indicating housing as a durable store of value [4] Group 2 - At the 2023 Berkshire Hathaway annual meeting, Buffett expressed reluctance to invest in real estate, citing the complexities and challenges of real estate negotiations compared to stock investments [5] - Buffett noted that there are greater opportunities in the security market than in real estate, reflecting a preference for stock investments over property [5]

Group 1 - The current stock market, focused on growth, has negatively impacted dividend stocks, leading to lower total returns and less competitive payments [1][3] - The pandemic forced many companies to cut or eliminate dividends, affecting the cash flow for dividend investors [2] - Dividend stocks have struggled to attract investors due to weak performance and the rise of algorithmic trading and younger investors who prefer different investment strategies [3] Group 2 - The Federal Reserve's interest rate hikes have made dividend investing less appealing, as bond rates are at nearly two-decade highs [3] - The options market has expanded, providing alternative strategies like collaring positions, which may offer more control over investment outcomes compared to relying on dividends [4] - The Dividend Kings, stocks that have increased dividends for at least 50 consecutive years, may not be sufficient to attract investors in the current market environment [5]

Summary of Key Points from J.P. Morgan's Long-term Strategy on Small and Mid Caps Industry Overview - The analysis focuses on the long-term performance of small, mid, and large-cap companies, particularly in the context of the U.S. market and its structural forces affecting returns [2][4][10]. Core Insights and Arguments 1. **R&D Intensity and Firm Size**: - Business-funded R&D intensity tends to favor larger firms, creating barriers to entry for smaller firms, thus increasing corporate concentration [2][11]. - Conversely, government-funded R&D benefits smaller firms by reducing barriers to entry, as evidenced by research showing small firms gain more from R&D grants [2][19]. 2. **Globalization Effects**: - Global integration has generally favored large firms, as they can build global supply chains and engage in tax arbitrage more effectively than smaller firms [2][26]. 3. **Antitrust Policy Impact**: - Weaker antitrust enforcement since the 1970s has coincided with a decline in the small-cap premium, although this is not seen as a primary driver of performance differences [2][31]. 4. **Interest Rates**: - Falling interest rates have historically favored larger firms more than smaller ones, as larger firms benefit from greater declines in borrowing costs and increased debt issuance [2][33]. 5. **Valuation Trends**: - Valuations have shifted in favor of small caps over the past 15 years, although this trend is less pronounced outside the U.S. [2][40]. 6. **Long-term Performance Expectations**: - Small and mid caps are expected to outperform in low return environments, supported by their long-term low beta characteristics [2][52]. - If business-funded R&D continues to grow, long-term returns on small, mid, and large caps may become comparable, with a slight favor towards small and mid caps [2][72]. 7. **AI as a Risk Factor**: - The growth of AI may disproportionately benefit larger firms, potentially altering the expected performance dynamics between small and large caps [2][83]. Additional Important Insights 1. **Historical Performance**: - Small and mid caps outperformed large caps until the 1980s, with large caps dominating performance in the last decade [2][4]. 2. **Structural Forces**: - The analysis identifies several structural forces influencing returns, including R&D intensity, trade intensity, interest rates, and past performance [2][53]. 3. **Future Projections**: - The expected long-term returns across size deciles are projected to be narrow, with small and mid caps potentially outperforming slightly in the coming decade [2][77]. 4. **Global Context**: - Outside the U.S., the structural support for large caps is weaker, and while some forces favor small caps, relative valuations remain neutral [2][85]. 5. **Monitoring Recommendations**: - Future changes in trade intensity, R&D funding, interest rates, and antitrust enforcement should be monitored as they could impact the relative performance of small and mid caps [2][83]. This summary encapsulates the key findings and insights from J.P. Morgan's analysis on the long-term performance of small and mid-cap companies, highlighting the structural forces at play and their implications for future investment strategies.

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to limited upside or potential losses [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: TerrAscend Corp. (TSNDF) Analysis - TerrAscend Corp. (TSNDF) has shown significant recent price momentum with a four-week price change of 117.1%, indicating strong investor interest [4] - Over the past 12 weeks, TSNDF has gained 83.1%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - TSNDF has a Momentum Score of B, suggesting it is an opportune time to invest in the stock for potential success [6] - The stock has also received a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - TSNDF is trading at a Price-to-Sales ratio of 0.82, indicating it is relatively undervalued, as investors pay only 82 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides TSNDF, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks based on their personal investing styles [9]

Market Overview - In March 2025, U.S. markets experienced a significant downturn due to escalating trade tensions, leading to a drop of over 10% in both the S&P 500 and Nasdaq, officially entering correction territory [1] Investment Strategy - The focus is on building a portfolio centered around Dividend Growth, targeting both high and low-end yield spectrum, with an emphasis on Blue Chip stocks that have a long history of dividend payments [1]