TSP Market Summary: Week of February 09, 2019

By Roy Weisert, PhD, CFP

Key Takeaways

  • Fed shifted to accommodating stance, reducing rate hike concerns and lowering bond yields
  • C Fund briefly crossed above 200-day moving average, showing potential momentum shift
  • F Fund emerged as top performer while International (I Fund) lagged behind

The markets consolidated this week with the S&P 500 gaining just over 1 point and closing at 2707. What was nice to see was the improving strength in market averages on Friday afternoon, which hopefully will carry over to next week. Trade talks still highlight the economic headlines, but falling out of the spotlight has been talks of Fed interest rate hikes. The Fed now appears to be taking a more accommodating, dovish stance and yields have actually decreased over the last few weeks. For TSP TIPS, we had the C fund cross above it’s 200 day Moving Average (MA) on Monday for the first time since 4 December. Although the C Fund dropped back below the 200 day MA by weeks end, both the C an S funds are well within striking distance of crossing above next week. Mirroring the resurgence that the overall markets had on Friday afternoon, both funds finished positive for the week. From a performance ranking perspective, the F fund has slowly asserted strength and now takes over the number 1 position while relegating the I fund to last. As such, TSP TIPS is recommending the following reallocation.

Recommended Allocation (Moderate Profile)

This is our historical recommendation from this date. For current recommendations, subscribe.

G FundF FundC FundS FundI Fund
10% 30% 30% 30% 0%