TSP Market Summary: Week of January 19, 2019
Key Takeaways
- Fed Chairman signals patience on rate hikes, boosting market confidence since Christmas Eve low
- All TSP equity funds (C/S/I) crossed above 50-day moving averages with stronger performance
- Trade progress with China lifted markets, but tariff negotiations remain key risk factor
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 |
|---|---|---|---|---|
| 50% | 0% | 20% | 20% | 10% |
Looking back, it appears as if Christmas Eve was the most recent low and since then the S&P 500 has logged four weeks of positive gains, closing Friday at 2670. This rise is primarily due to two factors. 1) The Fed Chairman has become more dovish, calling for "patience and good judgment" before raising rates and 2) Trade negotiations between the U.S. and China seem to be improving. Evidence supporting this was new session highs on Thursday when Secretary Mnuchin floated the idea of easing tariffs on Chinese goods. For our TSP equity funds (C/S/I), all three have crossed above their 50 day moving average with strengthening performance rankings. As such, TSP TIPS is recommending the following reallocation changes along with a reminder that the TSP is closed Monday.