TSP Market Summary: Week of August 12, 2017
Key Takeaways
- S&P 500 dropped below 50-day moving average after military rhetoric ended weekly gains
- Bond funds showing improvement as equity markets weaken, suggesting defensive shift
- Technical breakdown signals potential for further equity weakness ahead
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 |
|---|---|---|---|---|
| 5% | 15% | 25% | 15% | 40% |
The S&P 500 hit a new record on Monday, but with Thursday’s military rhetoric the S&P 500 finished down 35 points for the week, closing at 2741. This brought the S&P down to the levels of mid-July and more importantly, crossing below its 50 day moving average. Small Cap prices also followed suit. Based on this cresting movement over the last month coupled with an improvement in bond funds, we recommend a slight reduction in equity funds and moving into a more defensive position. More specifically, we recommend a 10% allocation reduction in both the C and S funds and moving those monies into the F and G funds.