TSP Market Summary: Week of May 25, 2019
Key Takeaways
- Trade war uncertainty drives investors toward Treasury bonds, boosting F fund to record highs
- C, S, and I funds fell below 50-day averages but remain above 200-day moving averages
- No trade talks scheduled until G20 meeting in late June, extending market uncertainty
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 |
|---|---|---|---|---|
| 0% | 50% | 40% | 10% | 0% |
The world\'s largest economies are in a trade war and the markets are reacting. The S&P 500 closed at 2826 Friday as concerns of slowing economic growth grew with the lack of a trade deal. No new negotiations are on the docket and it is highly likely that the next “trade talk” will be at the G20 meeting at the end of June. Based on this environment of uncertainty, we’re seeing a more cautious outlook with movement towards the safety of Treasuries. For TSP TIPS, we have taken advantage of this shift and will be further modifying our Trending Investment Portfolio Strategy (TIPS) allocation. From an analytical standpoint, the TSP bond fund (F) hit a new record high on Thursday. Conversely, the equity funds (C/S/I) prices are below their 50 day moving averages (MA’s) but hold above their 200 day MA’s . As such we will use the second allocation of the month to increase the bond fund and decrease equity allocations. The trade will take place on Tuesday since the TSP is closed Monday for Memorial Day, a day of reflection on those who gave all.