Key Takeaways:

• • The US equity market rally extended in Q2, as did much of the world, but Australia, small companies, Value
    equities, and Japan lagged.
  • US Mega-cap companies, excluding Tesla, rose but this rally was driven more by a valuation increase than
    earnings, posing a risk to markets if earnings miss expectations or if there’s a downturn in US GDP.
  • Opportunities exist within both the US and global undervalued equity markets, we shifted our portfolios to take advantage of the undervalued Quality small caps, Asia, EM, and the UK.
  • We still think there will be a cyclical rebound, but there are some low probability risks that we are positioning portfolios for, just in case. These risks include a growth shock, inflation shock, and market correction.