TSP Market Summary: Week of January 01, 2017

By Roy Weisert, PhD, CFP

Key Takeaways

  • Small cap funds (S Fund) leading performance rankings and expected to continue strong growth
  • International funds (I Fund) showing bullish momentum after strong December performance
  • Bond funds (F Fund) declining as interest rates rise - investors should understand this dynamic

First of all, we hope you all will have a great 2017 and here are some hopes for the markets. For the Dow, the hope is that it will finally hit that psychological 20,000 level. For the S&P 500, the hope is that this breakout will continue and we won’t see 20 months of flat performance like we did between November 2014 and June 2016. For Small Caps, the hope is that they will continue to lead the charge based on their performance ranking. For International funds, the hope is that they will build on the bullishness they started to demonstrate in December. And for Bond funds, the hope is that after 3 straight months of losses, more people will recognize that bond share prices decease in a rising interest rate environment. That said, allocations remain the same, so let’s also hope this January so not like the January of 2016.