Houses passes final tax bill and sends it to Trump: Reuters
Trump threatens to cut aid to countries that oppose Jerusalem policy: BBC
Shots fired at DMZ Zone between North and South Korea: Reuters
Sweden’s central bank ends bond purchases: Central Banking
A cryptocurrency founder cashes out: Bloomberg
Poland’s new judicial reforms may bring EU sanctions: Guardian
US existing home sales surge to 11-year high in Nov: HousingWire
10-year Treasury yield rises to 9-month high of 2.49%: Reuters

Positive momentum continues to drive the US economy forward, keeping recession risk low and providing upbeat estimates for the near-term outlook. With the White House poised to sign tax-cut legislation this week, the macro trend looks set to receive fresh stimulus to keep economic growth bubbling. The probability of recession in the near term, as a result, remains virtually nil.
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Senate passes tax-cut bill and prepares to send it to Trump: The Hill
SEC halts trading in shares of bitcoin-focused Crypto Company: CNN
US single-family housing starts rise to 10yr high in Nov: Reuters
JPMorgan estimates US debt sales set to reach 8yr high in 2018: Bloomberg
Global investors raise cash allocations, now above 10yr avg: MNI
A bitcoin exchange in South Korea goes bust after back: CNN
US 10yr yield rises to 2.46%, highest since late-October: Dow Jones

Last week I reviewed US stock-market returns in context with recent history for perspective on deciding if the latest bull run is extreme. The results suggest that current trailing performance for one and three years was impressive but not yet off the charts. The caveat is that the analysis focused on the last quarter century using a proxy ETF. Will the results change if we use a much longer data set?
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Trump unveils national security strategy focusing on America First: The Hill
House set to roll out huge $81 billion disaster relief bill: Politico
Homebuilder sentiment in the US rises to 18-year high in Dec: Bloomberg
Inflation expectations rise at Japanese companies: RTT
CalPERS raises bond allocation to 28% from 20%: Reuters
Minneapolis Fed President voted against rate hike due to low inflation: Reuters
Morgan Stanley: low market vol “is reflective of the fundamentals”: MarketWatch
2-year Treasury yield above S&P 500 div yield for first time in a decade: Schwab

Real estate investment trusts (REITs) in the US topped a generally rising tide in last week’s market action for the major asset classes, based on a set of exchange-traded products. The lone weak spot over the five trading days through Dec. 15: US junk bonds.
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Republicans expect tax bill will become law this week: Reuters
Trump to focus on economic competitiveness in speech today: USA Today
US industrial output y-o-y rises 3.4% in Nov, a 3-year high: MarketWatch
NY Fed Mfg Index eases in Dec, but still reflects solid growth: NY Fed
Forecasts call for best holiday season for spending in 7 years: CNBC
Bitcoin futures debut on second futures exchange: Bloomberg
Rising student-debt defaults put US economy at risk: Business Insider 
GOP’s proposed corporate tax cut may be smaller than it appears: FiveThirtyEight

● Predicting Stock Returns: Implications for Asset Pricing
By David G. McMillan
Summary via publisher (Palgrave)
This book provides a comprehensive analysis of asset price movement. It examines different aspects of stock return predictability, the interaction between stock return and dividend growth predictability, the relationship between stocks and bonds, and the resulting implications for asset price movement. By contributing to our understanding of the factors that cause price movement, this book will be of benefit to researchers, practitioners and policy makers alike.
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The US stock market has been on a tear lately. Has the party gone too far? A rising chorus of analysts say that caution is advised, citing several valuation metrics. The Shiller PE Ratio, for instance, is currently at its second-highest level since the late-1800s.
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Final push for GOP tax bill faces obstacles: The Hill
FCC repeals net neutrality regulations for internet: Reuters
Jobless claims in US fell 11,000 last week, near multi-decade low: AP
US retail spending accelerates in November, beating forecasts: IBD
US Composite Output Index slides to 9-month low in Dec: IHS Markit
US business inventories fell in October amid solid sales growth: Reuters
Confidence among Japanese large manufacturers rises to 11-year high: RTT
Eurozone Composite PMI rises to 82-month high in December: IHS Markit