• U.S. Economy Plows Forward as Congress Debates Next Steps
• Forecasting Becomes More Difficult Given Backdrop
• Supply Shortages Real, But Should Abate
• Asset Values Soar Despite Pandemic

We trimmed equity exposure during the quarter to a modest overweight and added to bonds. Our near-term forecast of moderating-but-positive fundamental conditions drove this decision. It is also worth noting that record amounts of stimulus continue to work through the system, lifting valuations and complicating forecasting for businesses and investors alike. Looking further out, low yields and elevated stock valuations suggest far lower returns than recent years may be in the offing. A tactical approach to investing is one way to try to improve returns in a low-return environment.