Alternative Investments

The word seems to be spreading that small- and micro-cap stocks have so far been enjoying a stellar 2026. What seems less well known is that the current cycle of market leadership for the two asset classes stretches back to 2025 and has been in place for 14 months.

In this month’s Allocation Views, strong corporate fundamentals and resilient growth fuel our continued optimism toward equities into June, despite persistent inflation and more restrictive monetary policy.

In addition to a greater range of chips supporting AI development, several factors could cause the current cycle to last longer than expected.

For many investors, wealth management still feels segmented. Investments are handled in one meeting, taxes in another, estate planning somewhere else, and major life decisions often happen independently of all three.

Since early 2025, value stocks have enjoyed a strong run, defying market volatility driven by trade tensions, geopolitical stress and macroeconomic uncertainty. That resilience may seem counterintuitive given value’s historically cyclical profile. Yet, we believe the underlying characteristics of value stocks are proving particularly well suited to today’s evolving market landscape.

Silver's chart also weakened substantially, although the metal remains near important longer-term support levels and has not yet confirmed the same degree of structural breakdown seen in gold.

Inflation and geopolitical uncertainty are pushing advisors and investors to rethink how they build diversified portfolios.

This past week, the market hit an all-time high. At the same time, Alphabet (GOOG) told investors it would raise $80 billion by selling stock to fund its AI buildout, and the shares fell about 4% on the news.

May saw 148 new ETF launches in May alone – although launch figures were partially driven by a 37-fund rollout from Corgi Insurance Services.

For more than four decades, PIMCO’s Secular Forum has provided a disciplined framework for stepping back from short-term market noise to assess the structural forces that will shape the global economy and markets over the next five years. Yet rarely has this exercise been more consequential than it has recently.

After more than three years of underperformance, our prognosis for global health care stocks remains positive. The sector now offers a broader set of high-quality companies at valuations that appear increasingly disconnected from fair value.

Equity issuance is all the rage. The SpaceX (SPCX) IPO on Friday, Alphabet’s (GOOGL) up-sized secondary announced last week, and a slew of other major go-public names over the remainder of 2026 (Anthropic, OpenAI) buck the years-long trend of intense buybacks and shareholder-friendly activities by the world’s most valuable companies.

All major U.S. stock indices fell last week, ending a remarkable run of nine straight weekly gains for the S&P 500. But the headline numbers hide an unusually lopsided story.

Begin with the print itself, because the headline flatters the internals only slightly. The bulk of May's gains came from leisure and hospitality, which added 70,000 jobs, nearly half of them in food services and drinking places; local government contributed 55,000, health care 35,000, and manufacturing a modest 7,000, while financial activities actually shed positions.

Equity markets should remain supported by strong earnings and capital investment trends through 2026, but market concentration and macro risks leave less room for error.

The war in Iran is putting pressure on airlines. Higher jet fuel prices are cutting into profit margins, and the risk of a prolonged conflict may reduce travel demand in Europe and Asia. But for lessors, these gathering clouds may come with a silver lining.

The takeaway for both HY and EM corporates is straightforward. Once oil prices are above breakeven, further moves in oil tend to matter less for credit performance.

In Part 1, we explored why Dollar Dominance Remains Alive and Well. Today, we will explore the stronger-dollar trade, the one macro trade that nobody is sized for.

The Numbers Are Staggering – The Magnificent Seven stocks now carry a combined market cap larger than the GDPs of Germany, Japan, India, and the UK combined. Meanwhile, 2025 tech-sector capital expenditures rivaled the peak-year spending of the Manhattan Project, rural electrification, the Apollo moon shot, and the Interstate Highway System — all at once.

While job growth has reaccelerated, supporting consumption, the underlying income picture is less encouraging.

Building resilient portfolios in markets delivering mixed messages can be a challenging affair. In our ongoing engagement with the retail and advisor community at VettaFi, we hear first-hand just how investors are tackling that challenge this year.

Markets have treated AI as a gold rush of LLMs, chips and cloud applications, but as the industry shifts from chatbots to agentic systems — AI that autonomously runs workflows and makes decisions — hyperscalers are now facing a brutal physical bottleneck.

The job market was surprisingly strong in May with non-farm payrolls growing 172,000, beating even the strongest forecasts for the month. As a result, the futures market is now pricing in a quarter-point rate hike later this year and more likely than not another quarter point rate hike sometime in 2027.

Fertilizers sit at the center of this transmission mechanism. As much as a third of the global supply of these commodities passes through the Strait of Hormuz, which has largely been closed for three months. This has triggered shortages and a price spike.

In case you’ve been living under a rock for the past few months, three of the world’s largest and most consequential private companies—SpaceX, Anthropic and OpenAI—are preparing to go public in the same year. Together, they could add nearly $4 trillion in market cap to public markets.

Metals Focus has released its Gold Focus 2026 report. It includes comprehensive historical supply and demand data for 2017-25 and its 2026 forecast.

Chris Galipeau and Taylor Topoussis discuss high-conviction insights that go beyond media headlines.

We are halfway through 2026, and the planning priorities that have defined our client work this year are in focus. Some of what we are doing is recurring: fixing compliance errors, correcting quarterly estimate miscalculations, and keeping tax positions aligned with economic reality.

The world is not ending. It is restructuring. But restructuring, as I noted at the outset, comes with an asterisk. What is really happening is a replacement, of assumptions, of guarantees, of the architecture that held everything together for eighty years.

In light of all this, our own view is that markets remain well positioned to continue to rally over the medium term, though given their stratospheric rise of late, a bit of a pullback might be in order in the short term.

Chuck argues that valuation should be based primarily on current earnings, which are known and measurable, rather than future earnings estimates, which are inherently uncertain. A P/E ratio of 15 equates to an earnings yield of approximately 6.67%, a return level that has historically aligned with the long-term returns investors have earned from stocks.

Our broad message for the second half of 2026 is this: Income still matters, but investors should be selective. Despite the recent rise in Treasury yields, we suggest investors favor a below-benchmark average duration with their bond holdings, favoring short- and intermediate-term maturities.

An increasing number of our neighbors are now retired. As they have made that transition, their sensitivity to the costs of living has increased, as has their skepticism over the way that inflation is measured. A common refrain: “I don’t care what the numbers say…things are REALLY expensive these days!”

For years, the retirement industry has framed the challenge the same way: Participants aren’t engaged enough. Employers need better communication. Advisors need to educate more.

In this episode of the Money Metals Midweek Memo, host Mike Maharrey argues that reports of inflation's demise have been greatly exaggerated. Drawing on both recent economic data and historical parallels, he contends that the United States may be entering a second wave of a broader long-term inflationary cycle reminiscent of the inflationary era of the 1960s and 1970s.

In the first phase of the generative AI boom, the winning strategy was straightforward: own the physical bottleneck. Alphabet’s plan announced this week to raise $80 billion suggests that the next phase may hinge on something else—the ability to finance AI capacity at scale without undermining returns.

The latest Emerging Markets Insights discusses companies across various sectors that have expressed cautious optimism for the second half of 2026 despite ongoing geopolitical pressures and higher input costs. Templeton Global Investments highlight what they observed at a recently attended summit.

On June 4, Vanguard launched the Vanguard U.S. High-Yield Corporate Bond Index ETF (VCHY) on the Cboe BZX. VCHY provides ultra-low-cost exposure to higher-yield U.S. corporate bonds. It comes with an expense ratio of just five basis points.

Bond ETFs secured a record $64 billion in monthly inflows, driving total fixed-income ETF assets above $2.5 trillion.

When it comes to systematic investing, numbers tell only part of the story. Traditional quantitative models rely on prices, earnings, and balance sheet data, but words matter too.

The top-performing non-leveraged ETFs of 2026 span a distinct blend of digital assets, next-generation semiconductor technology, and localized international equity plays. For advisors assessing portfolio allocations heading into the second half of the year, these performance figures highlight a sustained risk-on appetite among investors.