Corporate earnings have been strong enough to make domestic equity valuations look more attractive. Recent gains in the labor market have been robust, but continued momentum will be necessary before the Fed begins to slowly step back from its current accommodative policy.
Our positioning continues to favor a return to normalcy and economic expansion that is beneficial to value stocks. Value stocks are still attractively valued despite their year-to-date outperformance. We remain a relatively short duration within our fixed income sleeve.
The separation between countries being able to vaccinate large portions of areas and those who have not continues to be a factor in the economic rebound. With reopening and recovery in full force, government spending with low-interest rates will be positive for the market.
We are watching closely as the economy continues to re-open and things are beginning to return to normal. We believe this is one of the strongest economic rebuilds in history and the rate will begin to rise in anticipation of FED tightening. To learn more watch the video!
We are continuing to closely watch as the economy re-opens and things continue to return to normal. We are confident earnings will continue to rise significantly given the strength of the economy and that valuations will gradually return to more reasonable levels.
As the vaccination rollout continues to accelerate and states begin loosening COVID-19 restrictions, our investment thesis of economic growth over the next two years still remains intact. The government has also been quick to react with economic stimulus, which is positive.