TSP Market Summary: Week of May 14, 2016
Key Takeaways
- Markets showed weakness after Tuesday, with S&P 500 struggling at bottom of recent range
- Historical pattern suggests potential sell-off approaching based on five-month intervals
- Advisors recommend shifting from stocks (C/S/I funds) toward bonds (F fund) for protection
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 |
|---|---|---|---|---|
| 20% | 25% | 35% | 15% | 5% |
While Tuesday was a good day for the markets, the S&P 500 retreated for the rest of the week and closed Friday the 13th at 2046, up 0.13 percent for the year. Not one to be superstitious, it does appear that the market is getting tired as it remains at the bottom of the range I talked about last week. There was also a five-month interval between the sell offs we saw in August 2015 and January 2016. As we now approach that next five-month interval, we do recommend a reduction in equity (C/S/I) exposure to 55 percent and an increase in bond (F) exposure to 25 percent.