The equity and fixed income markets returned to focusing on the prospects of the Fed rising rates in December. The S&P 500 was up slightly (+0.30%), while small caps led the equity markets (Russell 2000 +3.25%). International equities were negative across the globe.

The fixed income markets were negative across all sectors excluding municipals as the prospect of Fed tightening has flattened the yield curve. The current volatility within fixed income sectors highlights how a tactical approach to fixed income can provide value in an asset allocation.

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