– Last week was good for almost all risk assets, except REITS, which closed down sharply by more than 3%.
– Almost every sector, style, and factor advanced last week. Small & Mid-Cap Growth and low volatility stocks bucked the trend and declined.
– China’s industrial output growth beat expectations in November, while IHS Markit’s preliminary December data shows Eurozone’s manufacturing recession is worsening.
– PIMCO, State Street, and Blackrock believe bonds aren’t pricing in a likely shift coming at the Fed to let inflation run hotter, making TIPS attractive.

– A strong Friday jobs report made the difference for US stocks, turning a down week into a positive one. Treasuries declined, and commodities rallied.
– Consumer, Industrials, and Technology stocks declined. US-China trade continued to decline in October, with imports dropping 4.8% and exports down more than 17%.
– Saudi Aramco raised $25.6 billion in the world’s largest IPO, putting the valuation at $1.7 trillion, about half a trillion higher than Apple.
– Business Insider reports that unwillingness of top 4 US banks to lend combined with surge in demand for funding from hedge funds may explain recent turmoil in repo market.