Good morning, investors. Alphabet replaces Verizon in the Dow to start the week and SpaceX will join the Russell 1000.

We’re still up in the air with the situation in Iran, and the big news item to monitor this week will be Thursday’s jobs report.

As for today, we’re unpacking the data behind why the bull market isn’t ending soon.

The AI bull market is unfolding with countless narrative violations.

The stock market’s losers are winning and the winners are losing in 2026 but after years of the opposite, it’s actually a reassuring signal for investors.

Small-cap stocks are outperforming large-caps, the equal-weight S&P 500 is beating the market-cap weighted index, and the S&P 493 are dominating the Magnificent 7 year-to-date.

Each of those three data points mark an about-face from the concentration story that so many investors capitalized on the last three years. Not only are mega-cap technology stocks offering the same outsized returns, but they are also no longer the only game in town.

Few would have predicted these year-to-date numbers six months ago:

Telling, too, is that small-cap stocks trade near 20 times earnings against the S&P 500’s 26 times, meaning that “cheaper” stocks are being rewarded. 

Ryan Detrick, chief market strategist at Carson Group, noted that the S&P 500 advance-decline line hit an all-time high on Friday, even as the index notched a losing week.

“Breadth leads price and is another clue that new highs are coming and this surprise summer rally likely isn’t over,” Detrick said.

Again, these numbers should be reassuring about the longevity of the bull market. The average stock is outperforming the broader index, while most of the trillion-dollar behemoths are dragging rather than pushing.

In short, today’s setup is less top-heavy compared to a year ago. Bull markets rarely end by becoming less narrow. 

Putting aside the red-hot chip stocks like Micron and Sandisk for a moment, stocks with attractive valuations are playing catch up while market breadth widens and the index’s heaviest weightings consolidate. 

If it looks like a bull and sounds like a bull, there’s likely still money to be made.

Quantify Funds is building actively managed funds that seek to pay weekly dividends from the performance of bitcoin, gold, and US stocks. 

$1 of ISBG gives $2 of total exposure to bitcoin & gold. 

Governments print. We stack bitcoin & gold.

🛢 Iran claimed sole control of the Strait of Hormuz. Tehran warned this weekend that any challenge to its authority over the oil chokepoint will bring more violence. (WSJ)

📊 Corporate profits just hit 12.4% of GDP. Q1 profits reached $4.42 trillion annualized, according to a Commerce Department report, the second-highest reading on record dating to 1947. (Yahoo Finance)

📉 SoftBank stock dropped 12% on Friday. The technology conglomerate took its biggest single-day hit since August 2024 on the report about OpenAI delaying its IPO, given its $65 billion stake in the ChatGPT maker. (Yahoo Finance)

I sat down with elite macro strategist Darius Dale, founder of 42Macro, to discuss his KISS portfolio strategy, where we are in the AI market cycle, why Kevin Warsh may be a dove in hawk's clothing, the shift toward a multipolar macro regime, and rotating out of the Magnificent 7.

Tune in on Spotify, Apple Podcasts, or YouTube — and please leave a review on the show if you like this episode!

🗓 June 29, 2007: Apple's first iPhone went on sale in stores nationwide. The launch began the run that turned Apple into one of the world's most valuable companies.

📩 Want to get in front of 207,000+ investors who get this newsletter and the 350,000 professionals who can access it on Bloomberg Terminals? Reply to this email and tell us why we should work together.

Partner disclosures:

ISBG uses Bitcoin, Gold, and Stock options and do not invest directly in bitcoin, gold, or stocks. The use of derivative instruments involves risks different from, or possibly greater than, the risks associated with investing directly in securities and other traditional investments. These risks include (i) the risk that the counterparty to a derivative transaction may not fulfill its contractual obligations; (ii) risk of mispricing or improper valuation; and (iii) the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, rate or index. Derivative prices are highly volatile and may fluctuate substantially during a short period of time. The use of leverage by the Fund, such as borrowing money to purchase securities or the use of options, will cause the Fund to incur additional expenses and magnify the Fund’s gains or losses.

The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged (2X) investment results, understand the risks associated with the use of leverage, and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. For periods longer than a single day, the Fund will lose money if the Target Portfolio’s performance is flat, and it is possible that the Fund will lose money even if the Target Portfolio’s market value increases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day.

There is no guarantee the Quantify Funds ETFs will make weekly distributions and the amounts may fluctuate from week to week. Distributions may be comprised of option premiums, dividends, capital gains, and interest payments. To view both current and historical monthly estimates of ETF distribution composition, investors may view the 19a-1 notices available on each corresponding Fund's webpage. Distributions classified as return of capital will reduce an investor’s cost basis in Fund shares owned, which may result in higher taxes paid in the future when the Fund shares are sold, even if the shares are sold at a loss compared to the original investment. 

Investing involves risk. Principal loss is possible. Distributed by Foreside Fund Services, LLC.

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses.

This and other information is in the fund page within the website (www.quantifyfunds.com). Please read the prospectus carefully before investing.