On a recent business trip to Europe, we noticed—anecdotally—a lack of hope in the economic future of Europe. There is a good reason for the lack of hope. Hope, we believe, comes in the form of new life. When all of the austerity being practiced in developed nations around the world is pretty much done, something else needs to happen for economic growth to take hold. At Smead Capital Management, we believe developed economies need rebirth and the birth last week of a son to the Royal family is a watershed event. In our view, this kind of hope could be a critical factor in the success of the US large cap equity market in 2014 and beyond.