ILCB - 3 Qs For Q3: Insights For Inquiring Equity Investors

• A majority of BlackRock investors in a recent survey felt that inflation would be transitory. Yet, they also felt the market might overreact to the inflation data, making some portfolio protection prudent.
• Economically sensitive cyclical stocks have had a very strong run since the announcement of effective vaccines in November. We don’t think their full potential is exhausted, but selectivity is more important now.
• We expect the economy to remain in a boom state as reopenings continue. While some cyclicals still have room to run, we see an opportunity to also turn attention to quality stocks as the cycle’s next beneficiaries.

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