TSP Market Summary: Week of January 09, 2016
Key Takeaways
- Markets experienced historically bad first five trading days to start 2016
- F fund was the only TSP option showing positive returns during the market decline
- Strategy shifts toward defensive G fund positioning given poor market start
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 |
|---|---|---|---|---|
| 75% | 25% | 0% | 0% | 0% |
There’s a saying on Wall Street that the direction of the markets over the first five days of the year will drive the direction of the markets over the full year. That said, the markets had their worst first five days ever. The only bright spot was the Fixed Income (F) fund which actually had a gain for the week. As such, we’ll continue to keep the majority of the portfolio in the G fund but will increase the allocation from 55 to 75 percent. For the remainder we recommend the F fund.