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Big news on a variety of fronts this week.

In spite of a Fed that has remained on hold for several consecutive meetings, falling inflation means that REAL rates are rising owing to a phenomenon known as "Passive Tightening." The Fed will not want this phenomenon to persist. Cuts are coming.

On the back of economic indicators continuing to remain strong.

Consumer Prices came in higher, while Producer Prices outright declined. The U.S. Fed's preferred inflation measure correlates more closely to producer prices. As such, odds increased to over 80% for the first U.S. rate cut to come in March.

The past 12 months saw healthy returns in client portfolios. 2024 looks set to be decent also, although earnings will likely need to grow faster than the meagre 3.1% rate seen in 2023 for this expectation to be realized.

Collectively, data is coming in neither too hot nor too cold. While it's likely premature to refer to this collective data as "Goldilocks", the case for a soft landing undeniably grows.

Markets surged in November as investors believe the rate hike cycle has come to an end. Timing of rate cuts is now the wider debate.

And even a mild recession is unlikely to disrupt markets too much. Encouragingly, a growing number of market strategists and economist believe a fabled "soft landing" might indeed be possible.