With the full impacted of tariffs uncertain, investors are aiming to mitigate risk by focusing on defensive sectors and U.S. small caps.

Most of small cap revenues come from within the United States, making them less vulnerable to trade wars.

Mergers and acquisitions were on the rebound even before Trump’s re-election bid, and they’re set to accelerate with the new administration’s softer regulatory stance. This could be a particular benefit to tech, investment banks and small caps.

The remarkable growth of the Mag 7 stocks has captured the market’s attention, but investors may be overlooking the highest-growth companies.