For the year, the S&P 500’s high was 2872 and its low was 2580. As we close out the first half of the year, the S&P 500 stands at 2718, pretty much at the mid-point between the two. 2018 is also nothing like 2017 where we had an upward trending market throughout the year. This year has been characterized by trading within that High/Low range. Looking back, this back and forth movement has been influenced by global synchronized markets, rising interest rates, North Korean nukes, North Korean summit, strong economic news, and then global synchronized trade fears. And let’s not forget Bitcoin, which has dropped from over $19,000 to under $6,000 in the last six months. So where do we go in the next six months? While no one can predict the future and to state the obvious, we may be in for more “flatness” if we remain with that High/Low range. However, we may be in for substantial bullish or bearish moves once breaking through one of them. Taking this all in, for TSP TIPS we remain 100 percent invested in the S and C funds as their price is above their 50 day Moving Average which is above their 200 day Moving Average. However, we will remain poised for reallocations if that scenario starts to weaken.
For the year, the S&P 500’s high was 2872 and its low was 2580. As we close out the first half of the year, the S&P 500 stands at 2718, pretty much at the mid-point between the two. 2018 is also nothing like 2017 where we had an upward trending market throughout the year. This year has been characterized by trading within that High/Low range. Looking back, this back and forth movement has been influenced by global synchronized markets, rising interest rates, North Korean nukes, North Korean summit, strong economic news, and then global synchronized trade fears. And let’s not forget Bitcoin, which has dropped from over $19,000 to under $6,000 in the last six months. So where do we go in the next six months? While no one can predict the future and to state the obvious, we may be in for more “flatness” if we remain with that High/Low range. However, we may be in for substantial bullish or bearish moves once breaking through one of them. Taking this all in, for TSP TIPS we remain 100 percent invested in the S and C funds as their price is above their 50 day Moving Average which is above their 200 day Moving Average. However, we will remain poised for reallocations if that scenario starts to weaken.