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
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.
Recommended Allocation (Moderate Profile)
This is our historical recommendation from this date.
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G Fund
F Fund
C Fund
S Fund
I Fund
90%
10%
0%
0%
0%
TSP TIPS
Professional investment guidance for federal employees, military personnel and independent investors.
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.