The United States economy is full of innovation. It has to be. Manufacturing industries that dominated the economy decades ago - textiles, televisions, even automobiles to a large degree - have moved overseas, where labor and materials costs are lower. Yet the U.S. economy, even during the pandemic and the current period of high inflation, has expanded to record levels. If U.S. corporations weren't innovating, creating new products (such as vaccines and AI) and services (such as Zoom calls) and moving into new markets, the domestic economy would not be growing, and capital would not be flooding into the country. The current high level of the U.S. dollar relative to currencies around the world attests to the confidence that global investors have in the durable and innovative U.S. economy.

Old Dominion Freight Line is the second-largest less-than-truckload carrier in the United States, with more than 250 service centers and 11,000-plus tractors. It is one of the most disciplined and efficient providers in the trucking industry, and its profitability and capital returns are head and shoulders above its peers. Strategic initiatives revolve around boosting network density through market share gains and maintaining industry-leading service (including ultralow cargo claims) via steadfast infrastructure investment.

March was another solid month for equity investors, as the S&P 500 advanced 3.1% compared to a 0.6% gain for the fixed-income benchmark ETF AGG. Looking ahead, our Stock-Bond Barometer model modestly favors bonds over stocks for long-term portfolios. In other words, these asset classes should be near their target weights in diversified portfolios, with a slight tilt toward fixed income in light of the recent rally in equities. We are over-weight on large-caps. We favor large-caps for growth exposure and financial strength, while small-caps offer value. Our recommended exposure to small- and mid-caps is 12%-13% of equity allocation, below the benchmark weighting. U.S. stocks have outperformed global stocks over the trailing one- and five-year periods. We expect this long-term trend favoring U.S. stocks to continue, given volatile global economic, political, geopolitical, and currency conditions, as well as the strength of the innovative Technology industry in the U.S. That said, international stocks offer favorable near-term valuations, and we target 5%-10% of equity exposure to the group. In terms of growth and value, growth rebounded in 2023 and outperformed value as interest rates stabilized. Over the longer term, we anticipate that growth, led by the Tech, Consumer and Healthcare sectors, will top returns from value, led by Energy, Real Estate and Materials, due to favorable secular and demographic trends.

Old Dominion Freight Line is the second-largest less-than-truckload carrier in the United States, with more than 250 service centers and 11,000-plus tractors. It is one of the most disciplined and efficient providers in the trucking industry, and its profitability and capital returns are head and shoulders above its peers. Strategic initiatives revolve around boosting network density through market share gains and maintaining industry-leading service (including ultralow cargo claims) via steadfast infrastructure investment.