Small cap equities remain one of the most paradoxical asset classes — frequently dismissed yet frequently cited as a contrarian buying opportunity on attractive valuations but often dissed by markets. This intrinsically intriguing enigma is rooted in certain market dynamics that are on full display right now. As such, we thought it would be appropriate to highlight key small cap themes that grant them both interest and an undertone of caution.

Tax Provisions in the One Big Beautiful Bill Act (OBBBA)

Beginning with tax years starting after December 31, 2024, businesses are once again permitted to fully deduct domestic r

Key Talking Points

• The Federal Reserve (Fed) — ironically, our country’s third attempt at central banking — has a representative nature to it, desirous in protecting investors from politicized policy-making.

• We shouldn’t be surprised that the executive branch is lobbying for lower rates. That’s been the case during various administrations from Reagan to Obama.

• The Committee, which sets interest rate policy, consists of 12 members, including presidents from five different district banks. The Chair only has one vote.

• There is no reason to aggressively cut rates down

In the first half of 2025, several key market forces we identified at the start of the year — rising uncertainties tied to the new U.S. administration’s policy shifts, increased market volatility, and the testing of elevated U.S. equity valuations — began to take shape. As such, broadening portfolio diversification beyond the traditional 60/40 framework was crucial for effectively navigating the shifting market environment. Looking ahead, we anticipate continued bouts of broad market volatility and varied performance within and across asset classes. While the current administration appears willing to work with international p

Domestic equities have been on an amazing run over the past 67 days since the stock market low on April 8. The S&P 500 Index surged over 23% off the low as concerns over tariffs eased, corporate earnings surprised to the upside, and economic activity held up relatively well. Today, we examine what seasonal trends may tell us about the short-term outlook for equities.

Based on historical trends, July is one of the strongest months for stocks, with an average return of around 1.2% since 1950, ranking as the fourth-strongest month. In recent years, July performance has been even more pronounced than long-term averages, ranking a