Market bounced back from weak jobs report selloff, showing strong underlying bullish sentiment
Weaker employment data reduces Fed rate hike pressure, making equity funds more attractive
Market resilience after bad news suggests continued strength for C, S, and I fund performance
While the S&P 500 eked out a gain of only 0.07 points this week, it was an extremely bullish 0.07. After a weak jobs report on Friday morning, the markets sold off, only to shed off that bad news and bounce back in the afternoon. From an economic perspective, this weak jobs report puts less pressure on the Fed to raise interest rates, which makes the equity markets more attractive. As such, we recommend maintaining the TSP TIPS equity allocation (C/S/I) at 80 percent.
While the S&P 500 eked out a gain of only 0.07 points this week, it was an extremely bullish 0.07. After a weak jobs report on Friday morning, the markets sold off, only to shed off that bad news and bounce back in the afternoon. From an economic perspective, this weak jobs report puts less pressure on the Fed to raise interest rates, which makes the equity markets more attractive. As such, we recommend maintaining the TSP TIPS equity allocation (C/S/I) at 80 percent.