The US economy continues to make steady progress in its recovery despite any short-term volatility.
US debt levels have soared during the pandemic, but the market is taking it in stride, staying focused on reopening the economy.
Small cap stocks have outperformed large cap stocks, suggesting the early stages of new economic cycle.
Q4 2020 earnings season may be the last in this earnings recession, and earnings may start to grow in 2021.
We favor stocks over bonds based on expectations for a strong economic and earnings recovery in 2021.