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DISCUSSION HIGHLIGHTS <br /> U.S. Economic and Market Overview (continued) <br /> U.S. equities, as measured by the S&P 500 Index, ended the year on a record high. We believe that corporate earnings growth rates will <br /> remain positive in 2022, but rising rates might put a damper on stock valuations and earnings-per-share growth. Similar to prior record high <br /> equity market peaks, we expect 2022 to be marked by more moderate advances. <br /> As global central banks let the air out of ballooning balance sheets, volatility across asset classes might increase, but we expect above- <br /> average global economic momentum to continue despite the headwinds of the pandemic and an overly-stimulated global economy. <br /> The continuing rise of positive COVID-19 infections as the Omicron variant spreads is akin to two steps forward, one step back and <br /> represents an additional headwind to risk asset performance. But Omicron's less deadly effects on those vaccinated may help bring us <br /> closer to herd immunity and the end of the worst of the pandemic. <br /> Equity valuations will be scrutinized and we anticipate a shift from the growth names that dominated 2021's 28.7 percent total return for the <br /> S&P 500 to more cyclically-sensitive stocks that underperformed during the pandemic, including small capitalization value and international <br /> equities. <br /> AiAFIIGHI\/1ARK® PARS: City of Pleasanton <br /> 3 <br /> CAPITAL MANAGEMENT <br />