As effective vaccines became a reality, cyclical value stocks strongly rallied on booming economic recovery prospects. Surging demand created supply shortfalls and bottlenecks, creating upward pricing pressures and lifting bond yields in the first few months of the year. But another reality began to set in—namely that economies can only reopen once. Once they have, cyclical stocks need structural underpinnings and earnings growth to continue to rise or they will fizzle out. As that recognition emerged, bond yields peaked and investors started paring cyclical bets in favor of more durable growth assets. And looking ahead, after the initial recovery spikes normalize and the effects of stimulus wane, the world is set to return to lower economic growth conditions. This reversion should keep interest rates and inflation levels in check over the long term.