Investment Strategies

For decades, investors believed in the ‘small-cap premium.’ But the last decade flipped the script: U.S. small-caps have trailed large peers, weighed down by weaker profitability, sector imbalances, and rising debt costs. Yet, with valuations deeply discounted, even for quality firms, the stage may be set for a comeback. Are small caps undervalued, or has the premium faded for good?

The S&P 500 hit 11 record highs in 30 days, but risks are mounting. With earnings, Fed policy, and global trade in focus, investors must balance opportunity with caution.

The Buffett Indicator has hit a record high of ~210%, signaling potential market overvaluation. This surpasses past peaks in 2000 and 2021. With rising debt, inflation, and economic uncertainty, Berkshire Hathaway is holding a record $347.68B in cash. Staying informed and focused on long-term fundamentals is key.