Miller Income Fund 4Q 2023 Manager Letter

This past quarter’s rarely seen divergence is meaningful, we believe, because it could mark a turning point in market psychology around the persistence of inflation, a phenomenon that is notoriously hard to predict. January is the time of year when all kinds of outlooks and predictions about the coming year crop up, most of which are about as reliable as forecasts of what the weather will be next month or who will win the presidential election this year. Astute readers will note that this paragraph’s lead sentence is not a prediction but rather an interpretation of what could explain a unique combination of returns across asset classes. However, understanding the collective thinking that could elucidate market movements is an important starting point for thinking through future probabilities, as public markets are generally thought to be efficient discounting mechanisms.

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