TSP Market Summary: Week of August 26, 2017
Key Takeaways
- $30B outflow from US stocks over 10 weeks while international stocks gained $36B inflows
- International fund (I) receives highest equity allocation due to superior demand trends
- F fund hits new high, prompting move from conservative G fund to capture bond gains
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 |
|---|---|---|---|---|
| 0% | 20% | 25% | 15% | 40% |
The S&P 500 was up for the week with a Friday closing of 2443. However, it and the Small Cap index continued to remain below their 50 day moving averages. As evidence supporting this slight U.S. pause, Bank of America released a report on Friday with some interesting data. For the last ten weeks a total of $30 billion has left U.S. stocks, the longest streak of outflows since 2004. Conversely, International stocks saw $36 billion in inflows over the same time frame. Bottom line is that demand usually drives prices higher, so we’ll keep the International fund with the highest allocation among the equity funds (C/S/I). The F fund also saw a new high, so we’ll take advantage of that last exchange for the month and make a slight allocation change, moving the 5 percent in the G fund into the F fund. Lastly, to our Gulf Coast subscribers, we hope that you and your families remain safe during Hurricane Harvey.