Below the surface, however, there has been some rather significant rotation. Early in the year, leading Growth stocks were being exchanged for Value stocks, like Financials and Energy.

Over the past few weeks, though, Growth has taken back the lead while Value and Internationals have risen, but not as much.

The Nasdaq clearly led the market during the entire pandemic as technology enabled the world to continue to function. Fast-forward to today with vaccines in full swing and the focus now appears to be on the recovery.

Anything that requires a physical presence has seen a material uptick, including travel, retail, and leisure.

After selling off, Tech has rallied back in the last couple of weeks. There is no question stocks in the sector will also benefit from an uptick in the economy, but the question is always how that stacks up to expectations.

The markets continue to benefit from historic amounts of stimulus. That is likely the reason that despite the rotation underneath the market, we continued to see new highs established by the major indices.

In sum, the market is quite positive, though it is still trying to figure out if it is a Growth or Value type of market. We believe there is a good case to make that the rotation to Value may have legs.

Growth has outperformed value since 2007, reaching an extreme last year. However, that relative performance may have turned.

For now, it is easy to remain bullish as we keep watching the rotations closely to see if any adjustments are needed in the strategies.