SMID caps are generally less covered by analysts, less liquid, and generally more volatile in the short and medium term than large caps.
We still believe we are not in a recession, and at most a shallow one is happening right now. However, the market is experiencing a liquidity squeeze.
We have been adding to our cash positions since Thanksgiving of 2021 as we looked to mitigate an expected adverse market environment.
With the Fed, high inflation levels and mid-term elections still looming, volatility will continue in the third quarter but value is back on top.