US stock markets have officially entered December trading. Principal Asset Management chief global strategist Seema Shah offers her market outlook on Morning Brief.

Shah highlights December's historically strong seasonal trends, emphasizing robust fundamentals and suggesting "no reason" to expect a deviation from typical performance.

"The key thing that's really going to drive markets is whether or not earnings are strong, and for that, you need to have a solid macro backdrop," she told Yahoo Finance. "As of today, the data is really telling us the soft landing narrative is still very much in place."

However, Shah cautions investors to remain aware of potential risks, particularly focusing on inflation trajectories in 2025 — questioning, "Is inflation going to take off again?" She recommends maintaining portfolio exposure to assets that provide "inflation mitigation."

To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.

This post was written by Angel Smith