A lot has happened since our last report. The Presidential election has still not been officially closed, there were two favorable COVID vaccine announcements, and the S&P 500 is back near all-time highs led by Value/Cyclicals.

And during the entire move higher, there have been many doubters with bearish views ranging from the world is ending, valuations are too high and there will never be a medical solution to COVID among other. In times like these, having a disciplined process that does not get whipsawed by the story of the day is critical. And our work has remained steady throughout the conflicting headline news since the March 23rd bottom – stay bullish.

We are still in the early innings of a profit recovery that is being accompanied by unprecedented monetary and fiscal stimulus. And I continue to recommend investors keep their focus on the bigger picture — 6, 12, and 18 months ahead.

Since late March, I have been advising investors employ a barbell approach by having a mix of Growth/FAANG and Value/Cyclicals at the expense of cash and defensive areas (Staples, Utilities, Real Estate, legacy Telecom). And following our broad-based ERM review, I still recommend this approach, but recommend investors slowly shift away from Growth and towards Value/Cyclicals. ...

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