Goldilocks Strengthens: From Narrow Strength to Broadening Expansion
The “Goldilocks with fragility” backdrop we outlined last Summer shifted to a rare “broadening” phase as we entered the fourth quarter of 2025. Early signs of improving breadth did exactly what they tend to do, they eased much of the fragility created by the prior narrow leadership. That transition didn’t merely hold; it evolved and strengthened as we closed out the year.
We are now in the full-blown broadening and strengthening part of the cycle. Parts of the Market that haven’t meaningfully participated for some time – years – are beginning to re-emerge as sources of leadership. Importantly, returns are no longer being driven exclusively by the Magnificent 7. That shift from concentration toward participation is both healthy and constructive…
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