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Six months ago, I forecasted that bonds of all stripes would extend their winnings this year. Then fears of inflation and rising interest rates sent Treasury and corporate bond yields up and sent bond prices, which move in the opposite direction, down 5% or more over the first three months of 2021 – with the exception of high-yield junk bond prices.
Although long-term interest rates, including corporate and Treasury yields, leveled off in April and backslid in May, my prophecy of positive total returns is in manifest jeopardy.
Through May 7, the Vanguard Total Bond Market ETF (BND) shows a loss of 2.5%. If that continues, 2021 would be the first down year for this popular yardstick since 2013.
Provided by Dow Jones
By Will Horner and Karen Langley The Dow Jones Industrial Average clinched its 13th record close of the year Wednesday, lifted by a climb in Walt Disney shares and bets on a rapid economic recovery. The recent signing of a coronavirus aid bill and rollout of vaccines have bolstered expectations that the economy will quickly rebound from the pandemic, fueling gains in everything from entertainment companies to raw materials producers. The blue chips added 73.89 points, or 0.2%, to 30409.56. The S&P 500 gained 5.00 points, or 0.1%, to 3732.04, while the tech-heavy Nasdaq Composite rose 19.78 points, or 0.2%, to 12870.00. Together the three indexes have notched 100 record closes in 2020, the most in a year since 2017, according to Dow Jones Market Data.
Фондовый рынок США растет в уходящем году kursiv.kz - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from kursiv.kz Daily Mail and Mail on Sunday newspapers.