We remain optimistic for the remainder of 2021 but anticipate periods of volatility before equity markets continue to trend higher. Elevated valuations are one reason for volatility, but you can add to the list, a deceleration in earnings growth, the possibility of higher interest rates, a spike in inflation, and the ongoing pandemic. However, earnings growth is expected to remain positive, fiscal and monetary policy is expected to remain expansionary, inflation is expected to overshoot but stabilize, and life is expected to return to normal. Although these events could cause a hiccup in the current bull market, they will not end it. The current bull market has lasted 1.3 years and has returned +92% (iShares S&P 500 Index ETF), compared to the previous fifteen bull markets, which lasted 4.3 years and returned +158%, on average. Historically, bull markets have been associated with the first three stages (early cycle, mid-cycle, and late-cycle) of an economic cycle, while bear markets have been associated with the last stage of an economic cycle (recession). With that said, we are currently early cycle and will likely enter mid-cycle within the next twenty-four months, depending on the speed at which the global economy recovers. In mid-cycle, growth typically outperforms other investment styles, mid-caps typically outperform other market capitalizations, and information technology and communication services typically outperform other sectors. The duration of the current bull market or economic cycle is uncertain but we do have visibility out to 2022 and will be deploying cash when volatility increases. Although we expect positive returns in the second half of 2021, we expect modest returns when compared to the first half of 2021 or since the bull market began in March 2020. To reduce volatility and protect earlier gains, we intend on adding defense through consumer staples and utilities, the two worst performing sectors year-to-date. Additionally, we are gradually adding to emerging markets, which have underperformed developed markets year-to-date. The underperformance has been the result of lower vaccination rates, which are expected to improve over the coming months.