This was another wild week on Wall Street. Never before have the markets moved more than one percent on any Christmas Eve. Some much for that as they dropped over 2.5 percent on Monday. When the markets reopened Wednesday, the Dow broke the 1000 point threshold for its largest one day gain ever. On Thursday, the Dow had an 871 point reversal to the upside in just the last 100 minutes of trading for the largest swing in eight years. On Friday, the S&P 500 finished down just 3 points closing out the week at 2485. However, it stood at 2520 one hour prior to the close, dropping over one percent in the last 60 minutes. Bottom line is that volatility still rules. For TSP TIPS, the three equity funds (C/S/I) all made new 52 week lows on Monday. That said, we’re recommending keeping the majority of the allocation in the G fund while increasing the F fund to 25 percent since it has a positive performance ranking. Also remember that “An interfund transfer requested before 12:00 noon, Eastern time, on a business day will generally be processed that night”. The key word is “generally” so we recommend changing the allocation this weekend so it counts as our second December reallocation and not a January trade. Lastly, we’d like to wish everyone an early but very Happy New Year!!
This was another wild week on Wall Street. Never before have the markets moved more than one percent on any Christmas Eve. Some much for that as they dropped over 2.5 percent on Monday. When the markets reopened Wednesday, the Dow broke the 1000 point threshold for its largest one day gain ever. On Thursday, the Dow had an 871 point reversal to the upside in just the last 100 minutes of trading for the largest swing in eight years. On Friday, the S&P 500 finished down just 3 points closing out the week at 2485. However, it stood at 2520 one hour prior to the close, dropping over one percent in the last 60 minutes. Bottom line is that volatility still rules. For TSP TIPS, the three equity funds (C/S/I) all made new 52 week lows on Monday. That said, we’re recommending keeping the majority of the allocation in the G fund while increasing the F fund to 25 percent since it has a positive performance ranking. Also remember that “An interfund transfer requested before 12:00 noon, Eastern time, on a business day will generally be processed that night”. The key word is “generally” so we recommend changing the allocation this weekend so it counts as our second December reallocation and not a January trade. Lastly, we’d like to wish everyone an early but very Happy New Year!!