TSP Market Summary: Week of May 19, 2018
Key Takeaways
- Small-cap stocks (S Fund) reached all-time highs despite rising interest rates and trade concerns
- All TSP equity funds show strong technical signals with prices above key moving averages
- Rising Treasury yields above 3.1% may pressure bond funds but equity outlook remains positive
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% | 25% | 50% | 25% |
Although the S&P 500 took a breather and closed down slightly this week at 2712, the Russell 2000 Small Cap Index hit an “All Time” record high. This was in spite of the 10 year Treasury note breaking above 3.1 percent for the first time since 2011 and trade talk tensions between the U.S. and China. For TSP TIPS, the equity funds (C/S/I) remain strong with their prices above their 50 day moving averages, which are also above their 200 day moving averages. As would be expected, the S fund’s Performance Ranking is highest and as such, we’re recommending an increase in equity holdings to a bullish 100 percent. Lastly, we would like to say to our new friends from Rapid City that we really enjoyed meeting you and hope you found the TSP training personally beneficial.