Equity markets continued climbing throughout the week despite earlier cautious outlook
C, S, and I funds broke above important moving average levels signaling strength
Technical indicators now support increased equity allocation over cash positions
Last week we took a more cautious perspective and recommended that we move more funds into cash. This worked out well on transaction day Monday as we sold when the Dow was up 233 points. However, the markets continued to stair step upward and by Friday the equity funds had crossed technical moving average (MA) levels. The C fund moved above its long term average, while the S and I funds moved above their short term MA’s. As such, we’re recommended an increase in the equity funds from 10 to 35 percent.
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
55%
10%
25%
5%
5%
TSP TIPS
Professional investment guidance for federal employees, military personnel and independent investors.
Last week we took a more cautious perspective and recommended that we move more funds into cash. This worked out well on transaction day Monday as we sold when the Dow was up 233 points. However, the markets continued to stair step upward and by Friday the equity funds had crossed technical moving average (MA) levels. The C fund moved above its long term average, while the S and I funds moved above their short term MA’s. As such, we’re recommended an increase in the equity funds from 10 to 35 percent.