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.
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.