TSP Market Summary: Week of September 05, 2015
Key Takeaways
- All three equity funds showed bearish signals as short-term averages fell below long-term trends
- Strategy moves to defensive positioning based on deteriorating multi-period performance metrics
- Allocation changes will remain until technical indicators and return rankings show improvement
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 |
|---|---|---|---|---|
| 90% | 10% | 0% | 0% | 0% |
This past week saw the three equity funds (C/S/I) turn further into bearish territory as their 50 day moving averages (MA’s) crossed below their 200 day MA’s. As such, we’re recommending a further reduction of the current 30 percent allocation in those equity funds to zero. We’ll stay in this risk adverse allocation until we see an improvement in their performance ranking, a weighted average of their rates of return over the last 1, 3, 6 and 12 month periods.