Key Points:

  • U.S. Leads the Way
  • Policy Supports Remain Despite Rebound
  • Foreign Economies Lag Recovery
  • Rates Move to New Lower Ground
  • Tactical Focus: Domestic and High Quality

As the economy reopens, we believe growth is set to surge. The United States is well along the path on vaccination, which is unleashing months of pent-up demand. Meanwhile, other parts of the world are lagging in vaccinations and confronted with potential challenges, including a stronger dollar. Given continued signs of progress and growth in the United States, we refocus tactically around domestic and high-quality assets. We also maintain a tactical overweight to equity over bonds, given incoming data as we enter the third quarter.