Markets showed extreme volatility with 1%+ daily moves on 5 of last 8 trading days
C fund dropped below 200-day moving average for first time since June 2016
Higher rates and global growth concerns overshadow strong earnings reports
It was a roller coaster week with high volatility, but the S&P managed to close at 2767, almost exactly where it was last Friday. To put some numbers behind this volatility, we’ve seen over one percent daily moves of the S&P 500 on five of the last eight days. Although we had strong reported earnings this week, the markets are under continued pressure from higher interest rates the concerns about the global economy. For next week we\'ll see more earnings reports as well as the GDP number on Friday. From a technical perspective, all TSP funds have weak Performance Rankings with the C fund recently moving into this territory. Additionally, the C fund dipped below its 200 day Moving Average (MA) for the first time since June 2016. As such, TSP TIPS recommends a more cautious approach and reducing our C allocation by half. This will be our second and final exchange of the month
Recommended Allocation (Moderate Profile)
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It was a roller coaster week with high volatility, but the S&P managed to close at 2767, almost exactly where it was last Friday. To put some numbers behind this volatility, we’ve seen over one percent daily moves of the S&P 500 on five of the last eight days. Although we had strong reported earnings this week, the markets are under continued pressure from higher interest rates the concerns about the global economy. For next week we\'ll see more earnings reports as well as the GDP number on Friday. From a technical perspective, all TSP funds have weak Performance Rankings with the C fund recently moving into this territory. Additionally, the C fund dipped below its 200 day Moving Average (MA) for the first time since June 2016. As such, TSP TIPS recommends a more cautious approach and reducing our C allocation by half. This will be our second and final exchange of the month