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The outperformance of small caps continues.

Through Tuesday’s close, the S&P 600 is up 10% year to date versus just 1.6% for the S&P 500.

All but three small-cap sectors are outperforming their large-cap counterpart. The strongest small-cap sectors are materials (+20%), energy (+23%), industrials (+17%), and tech (+11.4%).

If you’re investing in real assets, don’t limit yourself to just gold and silver. Looking beyond those precious metals generated powerful returns for our subscribers in 2025.

BridgeBio Pharma (BBIO)

Investing in stocks that are not being disrupted by AI has been a profitable play this year—especially as software sells off hard—here’s the names I’m watching now.

Artivion (AORT), our MedTech company that specializes in cardiovascular and aortic repair solutions, reported Q4 FY25 results after the close yesterday. Results came in a hair below expectations. Revenue grew by 11.7% to $129.5 million (missed by $48K) while adjusted EPS improved to $0.17 (missed by a penny) from breakeven in the year-ago quarter.

Gold vs. bitcoin has been a popular debate dating back to the earliest days of the cryptocurrency’s ascent, but that debate fundamentally misses how each investment performs as an asset.

Cyclical stocks are soaring and technology is floundering in the transformed market.

The bull market is turned upside down. For most of the first three years, technology, and particularly AI stocks, soared while most other stocks did very little. Now, previously meandering stocks are killing it while technology sinks.

Despite a small bounce Friday on softer inflation data that eased some knee-jerk selling, markets finished on the back foot as renewed investor anxiety around artificial-intelligence disruption rippled through tech and cyclical stocks. Growth names lagged, pressure widened beyond software to financials and real estate, and defensive sectors outperformed amid falling Treasury yields that weren’t enough to stem the slide. By week’s end, the S&P 500 had fallen 1.4%, the Dow Jones had lost 1.2%, and the Nasdaq Composite had tumbled 2.1%.

With the market’s rotation into energy, industrial and other “unloved” stocks continuing well into 2026, we’re leaning deeper into the trends.

This month’s issue focuses on yet another specialty industrial player, an under-the-radar biofuel story, and an energy name with exposure to strong, international markets.

As always, the goal is to stay aligned with what’s working.

Enjoy!

The market rotation continues to be the main story out there this week, though rumblings of a potential strike on Iran, an update from the January FOMC meeting, and a slew of earnings reports and economic data releases have been giving investors plenty to think about.

In terms of the rotation, the equal‑weight S&P 500 ETF (RSP) is up 5.5% so far this year, illustrating that leadership is broadening beyond the narrow group of mega‑cap stocks that drove much of last year’s performance.

Year to date, the S&P 600 SmallCap Index is up 8.3% and the S&P 400 Mid‑Cap Index is up 7.9%. Both are comfortably outperforming the S&P 500, which is up just 0.1%, and the Nasdaq, which is down 2.1%.

This week on Street Check, Chris and Brad break down the Supreme Court ruling that rolls back President Trump’s tariffs, the newly released U.S. GDP figures, outperformance by defensive sectors amidst ongoing market rotation, and Berkshire-Hathaway’s (BRK.A/B) last moves with Warren Buffett at the helm. Then, Tyler Laundon joins to discuss the strength of small-cap stocks, which sectors look the best, and what he expects from the asset class for the rest of the year. For more information on this week’s offer, visit cabotwealth.com/street.

Despite a small bounce Friday on softer inflation data that eased some knee-jerk selling, markets finished on the back foot as renewed investor anxiety around artificial-intelligence disruption rippled through tech and cyclical stocks. Growth names lagged, pressure widened beyond software to financials and real estate, and defensive sectors outperformed amid falling Treasury yields that weren’t enough to stem the slide. By week’s end, the S&P 500 had fallen 1.4%, the Dow Jones had lost 1.2%, and the Nasdaq Composite had tumbled 2.1%.

Shares of National Energy Services (NESR) are up nicely today after the company reported better-than-expected Q4 FY25 results early this morning. Revenue jumped 15.9% compared to Q4 FY24 (and +35% versus Q3 FY25) to $398 million (beating by 7.5%), and adjusted EPS rose almost 7% to $0.32 (beating by $0.07). The strong results were driven by high utilization and the beginning of work at the Jafurah frac tender. There were a few one-time costs in the quarter, including restructuring costs and two technology investment write-offs.

Valmont Industries (VMI) Reports

It’s been another relatively quiet week for the major indexes, with most in the black coming into today but by less than 0.5%. Today saw big news that the Supreme Court stuck down many tariffs, though the market seems to be taking that in stride, possibly because many could be put up under different authority. All in all, the action keeps the current market dynamic in place—the big-cap indexes are in a mostly sideways phase, while the broader indexes are in modest uptrends.