TSP Market Summary: Week of April 15, 2017
Key Takeaways
- S&P 500 dropped below 50-day moving average, signaling potential technical weakness ahead
- Recommendation to reduce equity fund exposure due to correction concerns and geopolitical risks
- Geopolitical tensions and strong post-election gains may create market volatility going forward
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 |
|---|---|---|---|---|
| 30% | 0% | 30% | 30% | 10% |
Although the markets were closed on Friday, it was still a short, tough week for the S&P 500 as it closed Thursday at 2328, down a little over one percent. It also seems as if this was a week of showing military might as we now are into full-fledged sabre rattling with North Korea and also dropping the MOAB. Given the fact that we’ve had a nice run up since the election, and the fact that the high for the year was March 1st, I have concerns that this market might be due for that long-awaited correction. Also, on Wednesday, the S&P 500 dropped below its 50 day moving average. As such, we recommend taking a little bit more off the table and reducing the equity exposure (C/S/I) to 70 percent. Unless things really go south, this will be the second and last transaction of the month. This is one of those times I wish we had more than two per month.