December was a great month for risk assets as sentiment turned overly positive after the US and China reached a phase one deal. The S&P500 rallied over 2.8%. Global markets followed with the MSCI World Index gaining 3%. Emerging markets significantly outperformed equities reacted extremely well to the phase one deal gaining over 8% for the month. The rand appreciated significantly against the US dollar in December on renewed emerging market risk appetite and broad based emerging market currecny strength. The ALBI gained 1.89% for the month as investors took advantage of the high yield on offer on South African government bonds. The currency should remain volatile leading up to Moody's downgrade decision and the budget speech. The ALSI gained over 3% for the month with the resources sector being the greatest contributor to the performance.