Over the next twelve months, we continue to favor: the rest of the world over the U.S., value versus growth, small caps over large caps, and cyclicals over defensives. The rest of the world is expected to outperform the U.S., as synchronized global growth gains momentum and the U.S. dollar continues to depreciate. Value is expected to outperform growth, as valuations are cheaper, earnings growth is stronger, and bond yields are rising, but still accommodative. Small caps are expected to outperform large caps, as investors rotate out of quality and add incremental risks to their portfolios. Cyclicals are expected to outperform defensives, as vaccination rates rise, the global economy reopens, and consumers begin consuming again. With that said, we expect the global economy to recover from the pandemic and life to return to normal, albeit a new normal. We are in the early stages of a new economic expansion, which should last years and provide investors with generous returns. For example, since 1932, the average duration and return of a bull market for the S&P 500 Index is 4.3 years and 158%, respectively. Although many countries and regions, such as Brazil and Europe, struggle to contain COVID-19, vaccines are proving to be effective. In addition to vaccines, fiscal and monetary policy continue to be expansionary. It is estimated that over USD $20 trillion of government stimulus has been deployed around the world and it is expected that central banks will leave interest rates lower for longer. This has the potential to result in the most rapid recovery in history. However, this also has the potential to lead to inflation. It is likely that inflation will overshoot in the short-term, but we do not believe central banks will panic and increase interest rates. We are optimistic for the reminder of 2021 but expect more muted returns when compared to 2020. For example, since 1932, the average return in year one and year two of a bull market for the S&P 500 Index is 46% and 12%, respectively.