James Mayer:
Hello, this is James Mayer from the Huffman Mayer Paolo Wealth Management Group of Wells Fargo Advisors.

Phil Anderson:
Phil Anderson from the Huffman Mayer Paolo Wealth Management Group of Wells Fargo Advisors.

James Mayer:
Spring is definitely in the air. The weather is warming up and we could not be more excited, but that isn't even all of the good news we have to share today.

Phil Anderson:
According to FactSet, first quarter earnings for the S&P 500 are expected to increase 22.1% versus the prior year, including dividends. If that estimate turns out to be correct, it will be the best year over year growth since the third quarter of 2018 and among the best quarters of the past decade.

James Mayer:
Looking at the stock market's internal dynamics, the most notable development this year has been a shift in the kinds of companies that are leading the way forward. Over the past three years, technology, communications and consumer discretionary stocks were the leaders. So far this year through most of March, the best performing sectors have been energy, financials, and industrials, companies that are generally more sensitive to the health of the overall economy.

Phil Anderson:
Between vaccinations and people who have recently had COVID-19, we may be approaching herd immunity in the US within the next few months. Even so, the percentage of Americans who say they will take a vacation in the next six months is near an all time low at 33.8%. Worse even than the depths of the global financial crisis is illustrated in the graph below.

James Mayer:
It'll be interesting to see how quickly our appetite for travel returns as it becomes safer for the average American to do so. Thank you for watching our video. As always, stay safe, stay healthy, stay happy, and hopefully we will see you very soon.