U.S. equities are on pace to gain more than 20% in 2021, and it’s been one of the smoothest rides in recent memory.
The easy-riding escalator to no-stress returns was briefly interrupted in September, when the S&P 500 fell 6%. But it quickly regained its climb to new highs early in December.
You may believe such an easy ride means a major pullback is imminent. Yet different sectors and investment “themes” have already pulled back, and you may not have noticed.

There is always an argument to be made that the stock market is overvalued. Here’s a sampling of the current menu for pessimists:
Fed tapering is imminent, Stubbornly high inflation, Earnings growth has peaked, Delta variant prolonging the pandemic, Supply chain disruptions.
All of those are legitimate factors when considering economic outlooks, but don’t forget the following…