TSP Market Summary: Week of October 27, 2018
Key Takeaways
- Extreme market volatility continues with 8 major daily moves in just 13 trading days
- C fund position reduced by half due to earnings disappointments and inflation concerns
- Death Cross signal (50-day MA below 200-day MA) would trigger full equity exit strategy
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 |
|---|---|---|---|---|
| 85% | 0% | 15% | 0% | 0% |
Last week we reported that “we’ve seen over one percent daily moves of the S&P 500 on five of the last eight days.” Well let’s make that eight of the last 13 days, which doesn’t include Tuesday’s action which saw the Dow down over 500 points but recovering before the close. That said, a strong 3.5 percent GDP report was offset by disappointing third quarter earnings reports combined with rising inflation and interest rates fears. All told, the S&P 500 was down over 100 points for the week, closing Friday at 2658. For TSP TIPS we are going to take advantage of the “third monthly move money to cash” reallocation waiver and decrease our C fund position by another half. Moving completely out of equity funds (C/S/I) would be triggered by a “Death Cross”, when the 50 day Moving Average (MA) crosses below its 200 day MA.