TSP Market Summary: Week of January 22, 2017

By Roy Weisert, PhD, CFP

Key Takeaways

  • Markets quickly recovered from initial Trump inauguration day sell-off, showing resilience
  • TSP equity funds (C/S/I) remain preferred as markets stay within 1% of historic highs
  • Six-week consolidation period may lead to upward breakout with patience required

Reminiscent of when Trump was declared the election victor, when he was sworn in on Friday again the markets had an immediate sell-off. But just like last time, they quickly recovered and for the week the S&P 500 was down just 3 points closing at 2271. Noting that patience is a virtue and that we remain within 1 percent of historic highs, we are recommending the same allocation with 100 percent in equity funds (C/S/I). After about 6 six weeks of consolidation, we\'re hoping for that breakout to the upside.