Over the past week and a half, the markets have rallied as we went into the mid-term elections. However, on Thursday the Fed announced that although interest rates would remain unchanged this month, they suggested they were on course for future continued rate hikes. That led the conversation back to concerns about our tariff war with China and how that might result in a slowing global economy. Like the market, the C fund’s performance ranking finally turned positive on Wednesday but reverted to negative territory by week’s end, which precluded TSP TIPS from increasing that allocation. It should also be noted that the F fund had a “Death Cross” this week. The Death Cross is when a fund’s 50 day moving average (MA) crosses below its 200 day MA, signaling a bearish market for that fund. That said, the S fund will probably have a Death Cross this upcoming week, while the I fund had its Death Cross in mid-July. Given this environment, we are going to remain on the cautious side and continue with our current allocation until the C fund can maintain a positive performance ranking for more than a day or two. Lastly, TSP TIPS would also like to give a “thank you for your service” to all our Veteran subscribers, of which I am proud to be one of.
Over the past week and a half, the markets have rallied as we went into the mid-term elections. However, on Thursday the Fed announced that although interest rates would remain unchanged this month, they suggested they were on course for future continued rate hikes. That led the conversation back to concerns about our tariff war with China and how that might result in a slowing global economy. Like the market, the C fund’s performance ranking finally turned positive on Wednesday but reverted to negative territory by week’s end, which precluded TSP TIPS from increasing that allocation. It should also be noted that the F fund had a “Death Cross” this week. The Death Cross is when a fund’s 50 day moving average (MA) crosses below its 200 day MA, signaling a bearish market for that fund. That said, the S fund will probably have a Death Cross this upcoming week, while the I fund had its Death Cross in mid-July. Given this environment, we are going to remain on the cautious side and continue with our current allocation until the C fund can maintain a positive performance ranking for more than a day or two. Lastly, TSP TIPS would also like to give a “thank you for your service” to all our Veteran subscribers, of which I am proud to be one of.