1Q’21: The Bull Market Continues, but Inflation Worries Persist

While many expected a correction in January after a strong finish to 2020 with record highs in both the Dow and the S&P 500, the US stock market has
continued to roar ahead: the S&P 500 finished the first quarter up 5.8%, the Dow up 7.8%, and the Nasdaq up 3% following a gangbuster 2020, up 43%.
The consensus view that the economy is re-opening and recovering as the vaccine rollout reaches escape velocity, has been largely discounted in the
stock market, but the additional $1.9 trillion stimulus package passed last month by Congress and the Fed’s repeated assurances they will not raise
interest rates provide important downside support.

With many economic indicators showing a strong recovery in the works –manufacturing, retail sales, housing, jobs and more — valuations remain bit
stretched, and expectations for a stronger faster rebound than previously believed led to an inflation fright last month. That worry sent richly valued, big cap growth names into a short-lived tailspin as the 10 year Treasury bond yield bounced up dramatically in percentage terms (though not in absolute terms: still negative real rates).

The Fed maintains that any inflation spike will be short-lived and interest rates going up a bit because of a strong economy reflect just that: a strong
economy, and not inflation racing away. This time, however, there are also some severe, supply chain disruptions because of unexpected demand
surges – think the chip shortage leading some automakers to temporarily close plants – which in some cases are leading to higher prices, but that is
almost certain to be short-lived.

We at BD8 Capital Partners agree with the Fed’s view on inflation, but as we predicted in our year-end newsletter, we expect a fright or two more as
the year unfold – which means more market volatility ahead — especially as consumers unleash pent-up demand in the travel, leisure and entertainment
areas.

While President Biden’s infrastructure bill has not passed as yet — and may not — if it does, the immediate impact will likely be muted, given the seven-
eight year investing time frame and wrangling over priorities and jurisdictional issues that could delay implementation. For now, as we have for some time now, we remain fully invested in stocks and expect investing in both growth and stocks tied to a cyclical recovery to continue to be rewarding and are expecting meaningful earnings revisions to the upside in this upcoming earnings season.

At BD8 Capital Partners, we look for and invest in companies with long runways of growth, sustainable competitive advantages, strong balance
sheets and seasoned management teams. We have used the market dislocations of the last year to buy premier names at discounted prices and
will continue to take advantage of the inevitable, often unexpected bouts of volatility where we can.

If you would like to discuss your financial planning needs, the health of your portfolios and whether you are well positioned for what lies ahead, please
feel free to contact us.

We hope you are healthy and safe.

Warmest regards,
Barbara
Barbara Doran
CEO CIO
bdoran@bd8cap.com
linkedin.com/in/barbara-doran-7aa248
https://twitter.com/barbara_doran1__BD8 Capital Partners LLC
299 Park Avenue, Floor 21|New York|10171
Office: 646-885-5682
Cell: 917-733-7644
Fax: 917-580-6882
Nolen Howe (Client Service Associate)
nhowe@bd8cap.com
Office: 332-220-3922

The content of this article is for informational purposes only and should not be considered a recommendation of any particular security, strategy, investment product or investing advice of any kind. There are risks
associated with investing, including the entire loss of principal invested. Past performance does not guarantee future results. The views and opinions
expressed in this article are those of the authors and do not necessarily reflect the opinions of Spire Wealth Management, LLC, Spire Securities, LLC
or its affiliates.

Spire Wealth Management, LLC is a Federally Registered Investment Advisory Firm. Securities offered through an affiliated company, Spire Securities, LLC a Registered Broker/Dealer and member FINRA/SIPC