Stocks in the first quarter of 2021 continued their substantial gains, and valuations are quite a bit different from a year ago at the beginning of Covid pandemic. Winslow’s stocks substantially outperformed the 6% gain in the broad market averages, as once again value and small cap stocks outperformed.
Estimates are for at least an 8% gain in domestic GDP this calendar year. Corporate earnings are expected to increase 38% and bond alternatives remain near record lows. As President Biden unveils his Stimulus- Infrastructure proposals, we are hopeful that capital gain and corporate tax rates will not increase as much as preannounced indications. These worries, in addition to our previous commentary on inflation are our major concerns in an otherwise robust and exciting outlook.