We held up well last week . We thought the Fed would talk down the markets but it was pretty much the opposite with the Fed minutes indicating that they are nowhere near tightening policy, despite concerns about inflation.  Also, it should be noted that, since that last Fed meeting, we've had terrible Payroll, Retail Sales and Housing Reports, with the Economic Surprise Index dropping to 1-year lows .   Nothing is beating expectations at this point – all the good news is baked in (hence, no "economic surprises") and that goes back to my toppy market theory – despite all the easing and all the stimulus – things that are already accouted for in our 35x Earnings average valuations for the S&P 500.   Should we be paying 40x or 50x for the average stock?  Of course not but, if we're paying 35x now, then 40x is only 14% away – that's not a lot of growth ahead before even the most die-hard investor would have to admit that things have gotten way too expensive.   We spent last week reviewing our Member Portfolios and those are overwhelmingly invested in value stocks – the very few that remain in the market.  If the overall market doesn't crash, we think we are in excellent shape to outperform the broader S&P 500 in 2021 – and 2022!     IN PROGRESS