Market volatility from Flynn news quickly reversed on tax reform optimism and Senate passage
TSP C and S funds hit record highs alongside S&P 500, supporting full equity investment stance
Senate tax bill approval creates potential market catalyst for the upcoming week
The first day of December was what I would call one of those “What has fundamentally changed?” days. There was an emotional sell off with news of General Flynn\'s guilty plea rocking the markets. But then tax bill “vote hope” encouraged a dramatic market turnaround with the S&P 500 closing at 2642, pretty much at the same level before the sell off. Subsequent to this, the Senate approved the new tax bill so we’ll see how that impacts the markets next week. With the S&P 500 hitting a record close on Thursday as well as the TSP C and S equity funds, we recommend staying 100% invested.<br>NOTE: Subscribers have asked about performance metrics so here is our response to making TSP TIPS more beneficial to you. Numbers are through the end of month, i.e. 30 November, not week’s end:<br>Year to Date: 17.84%<br>Last 12 Months (PIP): 19.69%
The first day of December was what I would call one of those “What has fundamentally changed?” days. There was an emotional sell off with news of General Flynn\'s guilty plea rocking the markets. But then tax bill “vote hope” encouraged a dramatic market turnaround with the S&P 500 closing at 2642, pretty much at the same level before the sell off. Subsequent to this, the Senate approved the new tax bill so we’ll see how that impacts the markets next week. With the S&P 500 hitting a record close on Thursday as well as the TSP C and S equity funds, we recommend staying 100% invested.<br>NOTE: Subscribers have asked about performance metrics so here is our response to making TSP TIPS more beneficial to you. Numbers are through the end of month, i.e. 30 November, not week’s end:<br>Year to Date: 17.84%<br>Last 12 Months (PIP): 19.69%