TSP Market Summary: Week of August 22, 2015
Key Takeaways
- Major market selloff with Dow losing over 500 points in single session Friday
- Defensive shift recommended toward safer G and F funds amid market volatility
- China tensions and Fed policy remain key risks despite unchanged fundamentals
Recommended Allocation (Moderate Profile)
This is our historical recommendation from this date. For current recommendations, subscribe.
| G Fund | F Fund | C Fund | S Fund | I Fund |
|---|---|---|---|---|
| 65% | 5% | 20% | 5% | 5% |
Friday was an “ouch” day as the Dow lost over 500 points to end a tough week. While the market environment did not change all that much (China, Fed, lower oil) from previous weeks, the market seemed to collapse on itself. When it comes to times like this it’s best to step out of the way of a possible oncoming bear train and therefore we’re recommending increasing the non-equity portion (G and F funds) of the portfolio to 70 percent.