For many investors, 2021 was a year of robust gains with the S&P 500 index returning nearly 29%, but there was significant dispersion in results across industries and geographies. Areas like emerging markets declined 3% as a category as geopolitical risk in China and pandemic- related challenges continued to weigh on these markets. US bonds experienced their first negative calendar year since 2013 after providing approximately 8% annual returns in 2018 and 2019. Energy was the best performing sector in the US, advancing more than 53% during the year as the pace of the economic reopening and subsequent demand for fuel surprised to the upside. And despite being in the midst of a global pandemic, biotechnology companies as an industry (healthcare companies on the frontlines of seeking cures for diseases) were surprising flat in 2021.1 The environment for 2022 is setting up to be an exciting one for active investors willing to step beyond simply owning an S&P 500 index fund.