Market Leadership Is Narrow, Metals Are Surging, and Income Planning Matters More Than Ever

Weekly Market Snapshot: Flat on the Surface, Uneven Beneath

The Nasdaq, S&P 500, and Russell 2000 all ended the week relatively flat. Both the Nasdaq and S&P 500 have experienced noticeable ups and downs throughout the month, yet their monthly returns remain largely unchanged. Volatility without progress often signals indecision, particularly ahead of major catalysts like earnings season.

The Russell 2000, on the other hand, continues to stand out. Despite pulling back late in the week, it has outperformed so far this year and recently reached another all-time high before fading. Importantly, earnings growth within the index has already accelerated by 22% year over year for Q4, we had highlighted a resurgence in small cap stocks along with EPS acceleration. Just two years ago, the Russell 2000 had EPS Deceleration, and recently earnings have accelerated. Combine that with falling interest rates and quantitative easing, and it looks like the party is just getting started for the Russell 2000.

Precious Metals at All-Time Highs: Opportunity Requires Patience

Precious metals remain one of the strongest performing areas of the market. Gold and silver have both reached all-time highs, while base metals such as copper, palladium, and platinum continue to attract attention.

That said, momentum works both ways. Our signal is currently flashing caution for a potential pullback. For those who have not yet allocated to precious or base metals, patience may be rewarded. Chasing strength rarely ends well, especially after extended rallies.

Periods of consolidation or short-term weakness often provide better entry points. Being prepared matters more than being early.

Earnings Season: Why Big Tech Matters, and Why Small Caps Are Different

Big tech earnings are just around the corner. Results from companies like Apple and Nvidia can act as a tailwind or headwind for both the S&P 500 and Nasdaq due to their outsized influence.

Noticeably absent from that discussion is the Russell 2000.

That’s because the Russell 2000 is comprised of small-cap companies, not mega-cap leaders. Its performance is driven less by a handful of dominant names and more by broad economic activity, domestic growth, and improving fundamentals across many businesses.

This distinction becomes especially important when evaluating diversification.

The Diversification Illusion in a Traditional 60/40 Portfolio

Many portfolios still follow a traditional 60/40 structure. On paper, owning an index with 500 companies may seem diversified. In practice, concentration risk is higher than many realize.

A small group of stocks now carries an outsized share of the weight and influence within major indexes. When seven companies dictate the direction of the other 493, true diversification becomes questionable.

If you haven’t reviewed your allocations recently, it may be worth stepping back and asking a simple question: how much of your outcome depends on a handful of names continuing to perform?

That’s a conversation worth having with your advisor.

Income Planning: The Question That Matters Most

Market performance is important, but it should not be the sole foundation of an income strategy.

Have you built a true income plan yet? One that does not depend entirely on market cooperation or favorable timing?

Reliable income in retirement often requires a different approach, one that prioritizes certainty, structure, and sustainability over growth alone. Knowing what level of income can be locked in ahead of time can change how you view risk, volatility, and even market headlines.

If you’d like to explore what’s possible in terms of guaranteed income, take a few minutes to run the numbers using our income calculator. Clarity often starts with seeing the options laid out in front of you.