For anyone searching for optimism for the S-fund, I found hope at the bottom of this article:

Tech Stock Rally Leaves Small-Caps in the Dust


In know, that title does not look like a small-cap advertisement. But it is referring to the current state of the market. The stock market has become alarmingly top-heavy. High rates and shaky economic outlooks have investors piling into the largest companies most likely to withstand the worst conditions. But there is an argument for a future rotation back to small-cap stocks once the economic outlook improves:

From the article above,

Adam Hetts, global head of portfolio construction and strategy at Janus Henderson Investors, suggests that investors have small-caps and large-caps in their portfolios because the former are often first to rally in the early stages of an economic recovery. He points to the period after the 2008 financial crisis, when small-caps initially outperformed large-caps.
“That’s where you’d see the biggest bounce, as we work through the bottom of a potential recession or bear market into a recovery environment,” Hetts said of small-caps.



We may have some serious time ahead before we should be thinking about a recovery environment. But this is something to keep in mind when contemplating your mix of the C and S-fund.