US investment-grade bonds were the exception, courtesy of a flat performance. Otherwise, the rest of the major asset classes fell last week during a wave of selling, based on a set of exchange-traded products.
The outlier: Vanguard Total Bond Market (NYSE:BND), which was essentially flat by the close of trading for the week through Nov. 23. The ETF, which holds a broad set of government and corporate fixed-income securities, has been in a tight trading range since early October.
US stocks posted last week’s biggest setback for the major asset classes. Vanguard Total Stock Market (NYSE:VTI) tumbled 3.5%, marking the fund’s second straight weekly loss.
Investors are looking for some relief in today’s session. US equity futures are up sharply in early trading today, offering a sign that prices may rebound following the worst Thanksgiving trading week since 2011.
“I don’t think the bull run is over but I think we’re close to the end of the cycle,” saidMark Esposito, CEO of Esposito Securities, on Friday. “It feels a bit unsafe,” he commented, citing softer earnings growth, higher market volatility and a downshift in economic output.