DC Lite #26

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1. Inflation expectations. Consumer expectations for 1-year ahead inflation dropped from 3.6% to 3.4% in November, the lowest since April 2021.

2. BBB spreads. “Even with a notional ‘Fed put’, BBB/IG relative spreads show no signs of this market being concerned about an imminent US recession.”

3. Crypto asset flows. "Digital asset investment products experienced their 11th straight week of inflows at $43m, with a notable increase in short position inflows" at +$8.6m.

4. Options activity. Daily options volume has doubled from 5 years ago and is on pace for a record 2023 with an average of 44 million contracts traded daily.

5. Seasonality (II). "December through February period typically favors small caps over large caps."