TSP Market Summary: Week of November 14, 2015
Key Takeaways
- Dow dropped 200 points Friday on weak retail earnings and Fed rate hike concerns
- S&P 500 broke below 50-day moving average, signaling shift to defensive G fund allocation
- Market may retest August lows near 1867, creating potential for further downside risk
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 |
|---|---|---|---|---|
| 80% | 10% | 10% | 0% | 0% |
This past week was not a good one. From a fundamental basis, weak earnings data, especially in the retail sector, and fears of a Fed rate hike contributed to the 200 point Dow selloff on Friday. From a technical perspective, the S&P 500 closed the week at 2023. This is about 3 percent below that 2100 resistance level, but it did cross to the downside its 50 day moving average of 2064. When you combine this with the Paris terror attacks, the market environment has shifted and we are recommending a more conservative shift towards cash, i.e. the G fund. While no one can predict the future, bottom line is that if this market does try to retest that low of 1867 set on 23 August, we don’t want to go along for that ride.