TSP Market Summary: Week of November 03, 2018

By Roy Weisert, PhD, CFP

Key Takeaways

  • Strong October jobs growth (250k) and 3.1% wage increases signal potential Fed rate hike
  • TSP equity funds avoided 'death cross' technical signal, supporting current allocations
  • Trade uncertainty with China created major market swings, highlighting ongoing volatility

We saw continued volatility this week, but the S&P 500 managed to close the week up at 2723. On Friday the Labor Department reported 3.1% wage growth and that the U.S. added 250,000 jobs in October. A strong wage number correlates with inflation which would give the Fed motive to stick with the interest rate increase next month. On Friday the Dow had a 500 point swing with conflicting White House reports on a China trade resolution. For the TSP equity funds we have avoided the "death cross" another week and we recommend staying with our current allocation.