TSP Market Summary: Week of December 19, 2015
Key Takeaways
- Federal Reserve implemented first rate hike in nearly a decade as markets had expected
- Stock funds (C, S, I) saw volatile response with initial gains quickly reversing to losses
- Cautious outlook suggests maintaining current TSP allocations amid market uncertainty
The markets got what they had been anticipating and that was a Fed rate hike for the first time in almost 10 years. With that, the markets marched higher through Wednesday’s afternoon announcement. Then, they realized what they got and the S&P 500 went from a post announcement high of 2075 to close out the week at 2005. As such, we remain cautious and recommend no change in allocations.