Both bond (F fund) and stock funds (C/S/I) moved higher together, a positive market signal
All TSP equity and bond funds reached highest levels since December's market bottom
Low volatility and trade progress suggest stable conditions, prompting hold recommendation
Most of the gains for the week came on Monday, but it was an overall nice week from a systemic perspective as both the bond and equity markets moved higher in unison. The S&P 500 closed Friday at 2822, which is about halfway between last Friday\'s close and the record close of 2930 from last March. Progress continues with the China and US trade agreement as investors become more confident in equities. Volatility also remains in check with the S&P 500 Bollinger Band Index (BBI) at its lowest levels since last October. For TSP TIPS and as mentioned above, both the bond (F) and equity funds (C/S/I) moved in unison and all four finished the week at their highest levels since last December’s bottom. As such, we are recommending a hold in our current allocation and waiting until next week to use our second allocation of the month based upon our Performance Rankings (PR).
Most of the gains for the week came on Monday, but it was an overall nice week from a systemic perspective as both the bond and equity markets moved higher in unison. The S&P 500 closed Friday at 2822, which is about halfway between last Friday\'s close and the record close of 2930 from last March. Progress continues with the China and US trade agreement as investors become more confident in equities. Volatility also remains in check with the S&P 500 Bollinger Band Index (BBI) at its lowest levels since last October. For TSP TIPS and as mentioned above, both the bond (F) and equity funds (C/S/I) moved in unison and all four finished the week at their highest levels since last December’s bottom. As such, we are recommending a hold in our current allocation and waiting until next week to use our second allocation of the month based upon our Performance Rankings (PR).