A Rock and a Hard Place, and The Good Stuff In Between

This week in the podcast we run through our latest thoughts on positioning within the US equity market with an eye on longer-term trends through 2022, which has been the focus of our conversations with investors in recent weeks. The big things you need to know: 1) We expect the Growth/Value trade to stay choppy through 2022. Once current pressures on the Value trade resolve (primarily COVID and growth concerns), we see another significant outperformance trade in Value in the intermediate term, but suspect that will end up being the time to exit the trade. (2) As we start to get ready for 2022 outlook discussions, we are getting more balanced between Value/Cyclicals and Growth in our S&P 500 sector overweights. Our Financials and Energy overweights remain, but we are lowering Materials from overweight to market weight. We are also lifting Tech to overweight from market weight. (3) High quality leadership has returned to the US equity market, supporting our upgrade of Large Cap Tech.