📊 Tariffs and Shutdown Tension

Good Morning Investors,

Policy and geopolitical risks linger beneath the surface. A proposed 25% tariff on medium and heavy trucks, alongside the ongoing threat of a partial U.S. government shutdown, has yet to meaningfully shake equity markets, but both developments present idiosyncratic risks for trade-sensitive and industrial small-caps.

Market structure signals also warrant attention. A pickup in penny-stock IPO activity on Nasdaq and increasingly concentrated corporate buybacks have added to volatility across smaller equities. Gains in commodities and select growth sectors are helping offset those pressures, but positioning remains highly selective as market breadth narrows.

Matthias Schneider
Editor at Analytica Investor