Stock market volatility persisted with major selloffs Wednesday-Thursday before Friday recovery
Rising 10-year Treasury rates at 7-year highs are pressuring stock valuations
Strong Q3 earnings season may help offset negative impact from rising interest rates
The weakness that we expressed in last week’s update (“it feels very similar to this past January”) continued into this week. The S&P 500 had increased volatility with big sell off’s on Wednesday and Thursday before recovering somewhat on Friday, closing at 2767. Rising interest rates with the 10-year Treasury Note hitting a 7 year high seem to be taking a toll, but hopefully that will be offset somewhat by a strong upcoming 3rd quarter earnings season. For TSP TIPS, we certainly are glad that we recommended moving 40 percent to cash. However, it sure was frustrating that the reallocation could not be completed until Tuesday, as the TSP was closed on Monday even though the stock markets were open. For right now we’ll maintain that allocation but will be vigilant next week. Lastly, we also wish the best to our TSP TIPS Florida panhandle hurricane subscribers and my fellow NSWC employees at Panama City.
The weakness that we expressed in last week’s update (“it feels very similar to this past January”) continued into this week. The S&P 500 had increased volatility with big sell off’s on Wednesday and Thursday before recovering somewhat on Friday, closing at 2767. Rising interest rates with the 10-year Treasury Note hitting a 7 year high seem to be taking a toll, but hopefully that will be offset somewhat by a strong upcoming 3rd quarter earnings season. For TSP TIPS, we certainly are glad that we recommended moving 40 percent to cash. However, it sure was frustrating that the reallocation could not be completed until Tuesday, as the TSP was closed on Monday even though the stock markets were open. For right now we’ll maintain that allocation but will be vigilant next week. Lastly, we also wish the best to our TSP TIPS Florida panhandle hurricane subscribers and my fellow NSWC employees at Panama City.