Economic Outlook - The market is surprisingly beating expectations by approximately 8% [2] - Economic data suggests a "reacceleration" following a soft patch [5] - The slowdown already happened, and the economy is accelerating out of it [3][7] Market Performance & Strategy - Equity market is acting in an early cyclical way, with home builders and auto names showing movement [6] - Small caps have kept pace since the April bottom, representing an overweight position [6] - The firm suggests buying weakness, viewing the recent news flow as overblown [7] Employment Data - Job numbers, after revisions, indicate an acceleration [3] - Initial job numbers were 14,000 and 19,000 for the prior two months, followed by 73,000 jobs this month [3] - ADP data, earnings, and consumer confidence show the same pattern of acceleration [4]