TSP Market Summary: Week of March 23, 2018
Key Takeaways
- Trade tensions with China intensified as both countries imposed new tariffs on each other's goods
- I Fund broke below 200-day moving average for first time since late 2016, signaling weakness
- S&P 500 approaching critical 200-day support level suggests further downside risk possible
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% | 30% | 10% |
This was a tough week for the markets which were under steady downward pressure with the S&P 500 closing Friday at 2588. Trade wars ensued with China hitting back with over 100 new tariffs on American goods in response to our steel tariff. Also, Facebook, a main component of the strong technology sector, lost 13 percent this week under concerns about data protection. From a technical perspective, the S&P 500 once again crossed below its 50 day moving average (MA) and is only a few points of falling below its 200 day MA. For TSP TIPS, the C, S and I funds have all been above their 200 day MA’s since 20 Dec 2016. However, this week the I fund broke that streak and as such, we recommend taking some funds off the table with a decrease in equity exposure (C/S/I) to 65 percent.