TSP Market Summary: Week of February 10, 2018
Key Takeaways
- Markets saw extreme volatility with 1,000+ point Dow swings after calm 2017
- TSP equity funds (C/S/I) dropped below 50-day averages for first time since Nov 2016
- Technical signals suggest reducing equity exposure despite strong gains since 2016
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 |
|---|---|---|---|---|
| 35% | 0% | 25% | 20% | 20% |
What the markets lacked in volatility in 2017 was made up for this past week. The S&P 500 lost 100 points on Thursday, while the Dow experienced two drops of more than 1,000 points and two gains of more than 300 points, i.e. massive intraday price swings. Thankfully one of those 300 point daily gain days was on Friday, but we still finished with the indices below their 50 day moving averages. For the TSP, all three equity funds (C/S/I) also closed the week below their 50 day moving averages first the first time since 8 November 2016 when the S&P 500 was at 2139. With the S&P 500 closing at 2619 this week, we’re up over 20 percent since then. However, since “No One Can Predict Future”, our Trending Investment Portfolio Strategy (TIPS) calls for a note of caution and a reduction in our equity exposure to 65 percent.