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Last week, investors took a vacation: major asset movements were subdued while bonds continued to show signs of life: other than emerging market bonds (PCY or EMB), all bond sub-assets registered positive gains.

It is noteworthy to point out that U.S. stocks (VTI or SPY) and commodities (GSG or DBC) have been very strong; they were the only two risk assets that had positive returns last week. In addition, U.S. high yield (junk) bonds continued to recoup their losses and were consistent with the risk chasing attitude investors have shown recently. Municipal and mortgage back bonds were still at negative trend territory, showing a downtrend that was worse than cash (SHV or short term treasury bills).

All in all, it was a quiet week and investors enjoyed their long awaited holidays.

Assets Class Symbols 12/23
Trend
Score
12/10
Trend
Score
Direction
Frontier Market Stks (FRN) 12.32% 13.93% v
International REITs (RWX) 9.7% 10.35% v
US Stocks (VTI) 9.41% 10.21% v
Commodities (GSG) 9.08% 8.74% ^
Emerging Market Stks (VWO) 8.86% 9.64% v
Gold (GLD) 8.16% 9.46% v
US Equity REITs (VNQ) 6.24% 7.67% v
International Developed Stks (EFA) 5.32% 6.51% v
US High Yield Bonds (JNK) 3.86% 4.33% v
US Credit Bonds (CFT) 1.1% 0.72% ^
Emerging Mkt Bonds (PCY) 1.04% 2.82% v
International Treasury Bonds (BWX) 0.77% 0.54% ^
Intermediate Treasuries (IEF) 0.09% -0.73% ^
Total US Bonds (BND) 0.06% -0.19% ^
Treasury Bills (SHV) 0.02% 0.03% v
Mortgage Back Bonds (MBB) -1.96% -1.71% v
Municipal Bonds (MUB) -2.01% -3.5% ^

click to enlarge

Source: Major Asset Movements Muted, Bonds Continue to Stabilize