Investors are looking for a modest rally toward the end of a tough year and some are simply cashing out now with the buildup starting in US Money Market Funds, attracting $75 billion in the last two weeks. Europe Equity extended the longest streak on record, while Bond Funds received positive attention with the assumption that the ECB is much more anxious to pivot as eurozone inflation improved in November but to only 10%. Flows into Bond Funds accurately reflect how balanced the consensus is, between those who think we are underestimating how far the Fed will go to contain inflation, and those who think inflation is already waning faster than the statistics note. Also in sharp focus is the reallocation of supply chains outside of China due to complications in Apple's production facilities with strict zero-Covid policies.
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