Does a change in the weather forecast at the Federal Reserve signal an end to the early stage of this recovery cycle?

Since November, financial markets have been “hanging ten” on a swell of cyclical, value and small-cap stocks, and rising Treasury yields. Crosswinds started to grow in the second quarter, however, and a change in the weather forecast from the Federal Reserve brought choppiness into markets. The Asset Allocation Committee expects that to persist, but on a 12-month view we still think the economic re-opening waves are rideable and that potential volatility is an opportunity to add portfolio risk.