Highlights
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Market conditions remain broadly risk-on, but leadership is increasingly shifting toward small caps.
- Relative strength in micro-caps has persisted since the 2025 tariff-driven lows, reinforcing a pro-growth, pro-risk investment backdrop.
- Leadership is rotating into Energy, Industrial Metals, Biotech, and Precious Metals while Semis and IT Hardware undergo normal consolidation after strong gains.
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Software & Services, Capital Markets, and Credit-related groups warrant close attention, as does the heretofore beleaguered quality factor.
