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Supported by a Fed with lots of room to cut.

The Fed cut rates by 0.50% and successfully rationalized the cut so as not to spook markets.

And this week, volatility was the good "up" kind.

And the slowing is highlighted by a reduced pace of hiring - the slowest three month stretch since the depths of the pandemic.

Most notably the U.S. Employment Report.

With this quote, Fed Chair Jerome Powell officially kicks off a U.S. rate cut cycle. Importantly, it also marks the beginning of a more normative post-covid economic cycle.

Unwind of the Yen carry trade certainly muddied the waters, but inflation seems to be tamed and economic indicators are proving resilient.

But has recession become the base case? I don't think so - not yet anyway.

Over the short to medium term, well diversified portfolios will always have winners and laggards. Apologizing for the laggards if often necessary in the shorter term. But over the longer-term, no apology is necessary.