No one could have predicted the events of 9/11, the Great Financial Crisis, nor COVID-19’s dramatic effects on the economy and markets. Yet what is predictable is that such shocks can occur and do occur. Against such backdrop, it is helpful to think of the following from Mike Antonelli’s recent posting: ”So how am I thinking about 2021 and beyond? Here is my framework: - Continued bounce in employment and GDP growth from crisis low levels as we inch back towards normalcy. - Housing remains a considerable tailwind as Millennials trickle into home ownership over the next decade spurred by population migration and low rates. - Demographics are favorable right now, 80mm millennials are entering the prime of their lives. - The vaccine will finally reach critical mass sometime around Q2 setting the economy up for potential supernova of growth, 5-8% annually over the next few years, as people absolutely FLOOD out of their homes. I don’t want to get delivery for the next few years and I’d be happy seeing every single Baird branch in person. - The Fed is still easy and committed to such, do you realize how important that is? - The potential is there for a “roaring 20s,” I just hope its “roaring” for everyone (and that prohibition doesn’t come back).” Though Mike has an air of levity in all of his posts, a focus on such broad economic and market tailwinds has us continuing our view that clients should stay invested at or near their long-term strategic allocations with sufficient cash to meet short term obligations over the next year or so.