Why Small Stocks Beat the Magnificent Seven in 2026 with Apollo Lupescu

The market was down 4.3% in Q1 2026 and the headlines were bleak. But look under the hood and the story is completely different. In this episode of The Purposeful Investor, David Andrew and Aden Wilkins speak with Apollo Lupescu from Dimensional Fund Advisors to break down exactly what happened in financial markets in the first quarter of 2026, why the headlines don't tell the full story, and what smart investors should actually be doing about it. From the Magnificent Seven's brutal quarter to value stocks quietly doing their job, from SpaceX IPO FOMO to the role of financial media in stoking fear — this is a masterclass in keeping your head when everyone else is losing theirs. In this episode: • The S&P 500 was down 4.3% in Q1 2026 — but the Magnificent Seven were down 11.3%, dragging it lower. The remaining 493 stocks were nearly flat. A bad quarter doesn't predict the rest of the year; the exact same thing happened in Q1 2025, which went on to finish strongly. • Australian value stocks returned 27% and small caps returned 13% for the year to March 2026. Dramatically outperforming the broader ASX 300 at 11.59%. Parts of the market were working even when headlines said otherwise • $1 invested since the 1920s: S&P 500 = ~$14,000 growth. Small caps = ~$54,000. Small cap value =~$166,000. Systematically tilting toward value and small companies compounds dramatically over time, without picking stocks. • IPO warning: SpaceX, Anthropic and OpenAI will initially release only ~10% of shares, creating artificial scarcity and FOMO. Insiders can sell the remaining 90% after six months. • Financial media runs on fear; it's entertainment, not advice. The algorithm reinforces your existing views. Confusing financial news with financial advice is one of the most expensive mistakes investors make. If you enjoyed this episode make sure to comment, like and subscribe to never miss an episode! ------------------------------------------------------------------ Follow Apollo Lupescu: LinkedIn:   / apollo-lupescu-78a3b87a   Follow David Andrew: LinkedIn:   / davidandrewfamilywealthadviser   Capital Partners: https://capital-partners.com.au/team-... Follow Aden Wilkins: LinkedIn:   / aden-wilkins-40b006105   Capital Partners: https://capital-partners.com.au/team-... Follow Capital Partners on socials: Facebook:   / capitalpartnerspwa   LinkedIn:   / capital-partners-3   Instagram:   / capitalpartnersprivatewealth   ------------------------------------------------------------------ Chapters: (0:00) Introduction & Episode Preview (1:00) Apollo Lupescu Joins from California (1:50) Win of the Week (4:35) Q1 2026 Market Recap and What Actually Happened (8:30) The Magnificent Seven Dragged the Market Down (16:45) Factor Investing Explained: Value, Small Cap & Profitability (19:00) The Small Cap Value Case (24:00) The Odds Game. Value vs Growth Over Time (26:30) Australian Market Returns (30:45) The Media's Role in Catastrophising Markets (38:45) Why Fear Is Hardwired Into Us and Kills Returns (41:00) IPO FOMO: SpaceX, Anthropic, Open AI and Why You Should Wait ------------------------------------------------------------------ The Purposeful Investor Podcast is a public service provided for Australian investors wanting to make smart decisions with their money, avoid costly mistakes, look after the people they care about, and, have a great life! We draw on over 30 years of experience from David Andrew and the Capital Partners team. For more information on Capital Partners' award winning team, visit capital-partners.com.au. Have a question? Email us [email protected]. This episode provides general advice only. We do not consider your personal circumstances when we share this information. Always refer to your financial adviser for advice about your personal circumstances. Capital Partners Consulting Pty Ltd AFSL 227148 trading as Capital Partners Private Wealth Advisers ABN 27 086 670 788. Recorded and produced by Podwave Studios https://podwavestudios.au/ #Capitalpartners #InvestingAdvice #StockMarket #ValueInvesting #MagnificentSeven #SpaceXIPO #FactorInvesting #MarketUpdate #FinancialPlanning #PurposefulInvestor #DimensionalFundAdvisors