Agrees. Advocates leaning into market dips because underlying fundamentals are incredibly strong: strong earnings growth, record profit margins in S&P 500, and small caps likely to exceed S&P 500 earnings growth. Key is being selective and leaning into long-term, durable secular growth trends.

Acknowledges large caps drive the market but argues many still have positive earnings momentum. Believes market can push higher if rest of market shows strong earnings, but needs past market leaders to work again. Sees catalyst in ROI from massive capex investments, which will get the market moving higher, including larger names.

Biggest opportunities: select tech (semiconductors like TSM, memory, optical names), industrials (electrical equipment, data center site developers), and high-quality small caps. Biggest concerns: financials (due to private credit concerns and poor price action in banks/BDCs/insurance) and consumer staples.

A sideways/higher rate environment is a reason to avoid rate-sensitive consumer names and lower-quality companies. It's an environment to skew towards high-quality companies with growth, which can be found in small caps that are already free cash flow positive or have secular tailwinds (e.g., biotech acquisitions).