TSP Market Summary: Week of June 14, 2015
Key Takeaways
- S&P 500 stalling at levels first reached in February, suggesting potential market top forming
- Equity allocation reduced due to signs of weakness in top-performing stock funds
- Bond fund allocation eliminated in anticipation of first Fed rate hike since 2006
Recommended Allocation (Moderate Profile)
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| G Fund | F Fund | C Fund | S Fund | I Fund |
|---|---|---|---|---|
| 27% | 0% | 20% | 40% | 13% |
The top 3 equity funds continue to be the S, C and I funds, but it looks as if they’re getting a little bit tired. For instance, the S&P closed the week at 2094, a level it first crossed to the upside in mid-February. It might be starting a topping moment so we’ll take a little money off the table and reduce the equity allocation to 73%. The Fixed Income bond fund’s performance ranking has turned negative in anticipation of the first Fed hike since 2006, therefore that allocation has been zeroed out.