S&P 500 gave back intraday gains Wednesday, showing increased market volatility patterns
Five weeks of topping action since March highs signals time to reduce equity exposure
Syrian missile strikes and weak employment data had muted market impact surprisingly
This week was an unusual one for the markets. On Wednesday I watched the S&P 500 have a nice run up until mid day, then selling off to lose all those gains and more. On Friday the markets woke up to the Syrian cruise missile attack and a weak employment report. I would have expected more of a market reaction, but the indices stayed flat with the S&P 500 closing the week down slightly at 2355. As mentioned last week, the S&P 500 had its highest close for the year on March 1. Given the fact this “topping action” was five weeks ago, we’re recommending a slight decrease of 10 percent in the equity funds (C/S/I) and rotating that into the “G” Cash fund.
Recommended Allocation (Moderate Profile)
This is our historical recommendation from this date.
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G Fund
F Fund
C Fund
S Fund
I Fund
10%
0%
40%
40%
10%
TSP TIPS
Professional investment guidance for federal employees, military personnel and independent investors.
This week was an unusual one for the markets. On Wednesday I watched the S&P 500 have a nice run up until mid day, then selling off to lose all those gains and more. On Friday the markets woke up to the Syrian cruise missile attack and a weak employment report. I would have expected more of a market reaction, but the indices stayed flat with the S&P 500 closing the week down slightly at 2355. As mentioned last week, the S&P 500 had its highest close for the year on March 1. Given the fact this “topping action” was five weeks ago, we’re recommending a slight decrease of 10 percent in the equity funds (C/S/I) and rotating that into the “G” Cash fund.