FLGV - Stock Market Update

• We don’t know for sure what the direction of interest rates will be, but they are likely to remain very low or at the present levels.
• Also, inflation indicators are mixed, and arguments can be made for a rising inflation trajectory that will ultimately lead to higher interest rates, even as counterarguments can be made that this inflation flare will prove to be transitory.
• The general view is that the S&P 500, for 2022, will deliver earnings in excess of $200. The equity risk premium invites the investor to own more stocks vs. bonds, not the other way around. And the outlook for earnings on cash or the interest rate earned on cash equivalents remains very, very low.
• Our outlook for the market continues to be bullish - we see higher stock prices and higher earnings, a trajectory that will probably be in place for the rest of this decade.

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