TSP Market Summary: Week of December 23, 2017

By Roy Weisert, PhD, CFP

Key Takeaways

  • S&P 500 achieved record high and fifth consecutive week of gains from tax reform passage
  • Santa Claus rally expected next week from bonuses, optimism, and reduced trading activity
  • Strong recommendation to stay fully invested in C and S equity funds during this period

The S&P 500 remains consistent logging a record high on Monday and closing at 2683 Friday for its 5th straight week of gains. What has been driving the market during this period has been tax reform, which was signed into law on Friday. Next week we hopefully will see the Santa Claus rally phenomena which is driven by tax considerations, happiness around Wall Street, people investing their Christmas bonuses and the fact that the pessimists are usually on vacation this week. As such, for the TSP we recommend remaining 100% invested in the C and S equity funds. In closing I have two comments. The first is that we had the opportunity to provide training to the wonderful people at the U.S. Indian Police Academy at the Federal Law Enforcement Training Center in Artesia, NM. Thank you!! Last, we wish all our TSP TIPS subscribers a very Happy Holiday season!!