TSP Market Summary: Week of September 19, 2015

By Roy Weisert, PhD, CFP

Key Takeaways

  • Fed's rate decision initially boosted markets but sentiment quickly reversed into sharp decline
  • C, S, and I funds showing continued weakness prompts defensive cash positioning strategy
  • Market volatility following Fed announcements highlights ongoing uncertainty for investors

“No Change” in interest rates by the Fed resulted in a “Big Change” in market sentiment after their announcement on Thursday afternoon. After an initial surge in the Dow, it dropped 535 points by weeks end, and the S&P 500 closed Friday at 1958. The C, S and I finds continue to be weak and as such, we’ll remain primarily in cash.