TSP Market Summary: Week of December 16, 2017
Key Takeaways
- Tax reform proposals drove markets higher, with S&P 500 averaging more than one record weekly
- C and S funds showing strong performance signals based on analytical rankings
- Historical pattern suggests continued market gains if tax legislation passes
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% | 0% | 50% | 50% | 0% |
After years of financial reporting on the effects of Fed interest rate hikes on the markets, the news of them raising rates for the third time this year was overshadowed by news of the proposed tax reform bill. In reaction to that news, the S&P 500 closed Friday at 2675 for another record close, the 61st of the year. When you look at that in a little more detail, that averages out to more than once a week, and they pretty much have had a consistent upward slope throughout the year. In the past, we’ve seen positive market reaction when both the House and Senate passed their bills, so we would expect the same if the tax bill becomes law. From a TSP TIPS analytical perspective, we’re also seeing positive “Buy” performance rankings for both the C and S funds, so we’re recommending a 50/50 split between those two funds.