– US Treasuries rally for the second week in a row, while all other asset classes declined. Earnings for the S&P 500 are on track for a full-year of earning declines.
– At more than $2.3 trillion, the combined market caps of Apple and Microsoft now exceed the entire Russell 2000 index and are twice the size of the Energy sector.
– Sweeping election wins by pro-democracy candidates in Hong Kong over the weekend increases pressure on Beijing after months of unrest.
– WSJ reports that U.S. cos are pulling back on investment. Capital spending by S&P 500 cos grew less than 1% in Q3 and would have fallen without Apple & Amazon.

– US Equities, Treasuries, & REITs climbed – Intl equities & commodities declined. Long-maturity Treasuries snap back to end recent losing streak.
– Style boxes line up uniformly in favor of large over small & growth over value ytd. Strong rallies from Utilities and Healthcare, as Healthcare is slowly clawing its way back.
– Longer term implications of trade war include a push by China to move away from a reliance on the US dollar, according to economists at ANZ bank.
– Concerns highlighted by Fed’s twice a yr report – high corp. & hedge fund leverage, lack of liquidity in futures mkts, & low rates encouraging too much risk-taking.