TSP Market Summary: Week of July 21, 2018

By Roy Weisert, PhD, CFP

Key Takeaways

  • 83% of S&P companies beat Q2 earnings expectations with major earnings week ahead
  • S fund reached new historical high while I fund entered bearish territory with death cross
  • Auto tariffs loom as potential market risk factor for upcoming week

The S&P 500 again had a flat week closing at 2801 on consecutive Fridays. There were opposing forces pulling at the market this week, but earnings reports continued to be strong. With about 16% of S&P companies reporting thus far, 83% of them were surpassing second quarter earnings. Next week auto tariffs may play out, but more importantly it\'s the biggest week for earnings season. For TSP fund performance, there were two significant technical occurrences this week. On the negative side, the I fund continued further into Bearish territory as its 50 day Moving Average (MA) crossed below its 200 day MA (Death Cross), and it’s price remains below both. On the positive side, the S fund hit a new historical high and the C fund is just shy of a new high by about 1.5%. Based on that, for TSP TIPS we recommend a continued 100% allocation in the S and C funds.