Hope of a strong jobs report was lost Friday after the release of employment data that missed expectations. The S&P 500 closed that session, and the week, down at 2743. That said, there are growing concerns of a slowing economy, resulting in weaker corporate earnings which will put pressure on equities. As such, this week we’ve seen the beginnings of a slight rotation which favors bonds over stocks. Mirroring that, for TSP TIPS we’ve seen the F fund rise to the top, albeit closely bunched, of the performance rankings (PR = weighted average return for 1, 3, 6 and 12 months). We’ve also seen a shift in each fund’s relationship to their 3 and 12 day moving averages (MA). The F fund’s price is above both of those MA’s and both MA’s are trending upward, while the TSP equity funds (C/S/I) prices are below both of those MA’s and both MA’s are trending downward. Given this initial slight shift, we are recommending the following reallocation which includes diversification across the three equity funds since their PR’s are “closely bunched”.
Hope of a strong jobs report was lost Friday after the release of employment data that missed expectations. The S&P 500 closed that session, and the week, down at 2743. That said, there are growing concerns of a slowing economy, resulting in weaker corporate earnings which will put pressure on equities. As such, this week we’ve seen the beginnings of a slight rotation which favors bonds over stocks. Mirroring that, for TSP TIPS we’ve seen the F fund rise to the top, albeit closely bunched, of the performance rankings (PR = weighted average return for 1, 3, 6 and 12 months). We’ve also seen a shift in each fund’s relationship to their 3 and 12 day moving averages (MA). The F fund’s price is above both of those MA’s and both MA’s are trending upward, while the TSP equity funds (C/S/I) prices are below both of those MA’s and both MA’s are trending downward. Given this initial slight shift, we are recommending the following reallocation which includes diversification across the three equity funds since their PR’s are “closely bunched”.