Investor sentiment is a forward-looking signal that captures conviction before it hits price, offering exposure that traditional price-based factors like momentum don't fully capture.

Q2 2026 geopolitical shocks sent commodities surging and tumbling. Active security selection proved critical as oil retreated, gold sold off, and steel surged to multi-year highs.

After a volatile Q1, fallen angels bounced back sharply in Q2 2026, outperforming broad high yield by 1.23%, as geopolitical de-escalation and tighter spreads drove strong returns.

As mega-cap tech pulled back in June, the Moat Index gained on semiconductor and cybersecurity strength and the SMID Moat Index rose on AI chips and a notable health care deal.