Fed's 'patient' language on rates pushed S&P 500 to record close of 2954, breaking key resistance
F fund extends winning streak to seven weeks of highs as 10-year Treasury yield drops below 2%
C and I funds generated 'buy' signals after breaking resistance levels on Thursday
The Fed left interest rates unchanged after meeting Wednesday, but gave investors a strong indication for a rate cut in the future by using the word "patient" when it comes to monetary policy. This showed the Central Bank\'s strength in moving the markets as the S&P 500 hit a record close of 2954 on Thursday, breaking through the resistance level of 2945 from 30 April. In anticipation of further rate cuts, the 10 year treasury yield dropped below two percent for the first time since November 2016. For TSP TIPS, the F fund extended its winning streak with seven weeks of record highs. Also, the TSP C and I funds broke through their resistance levels on Thursday as well and gave us "buy" signals. While no one can predict the future, it sure would be nice to see the equity funds (C/S/I) follow the F fund’s leadership and run off their own streak of seven consecutive record high weeks. As such, we are recommending the following allocation change.
Recommended Allocation (Moderate Profile)
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The Fed left interest rates unchanged after meeting Wednesday, but gave investors a strong indication for a rate cut in the future by using the word "patient" when it comes to monetary policy. This showed the Central Bank\'s strength in moving the markets as the S&P 500 hit a record close of 2954 on Thursday, breaking through the resistance level of 2945 from 30 April. In anticipation of further rate cuts, the 10 year treasury yield dropped below two percent for the first time since November 2016. For TSP TIPS, the F fund extended its winning streak with seven weeks of record highs. Also, the TSP C and I funds broke through their resistance levels on Thursday as well and gave us "buy" signals. While no one can predict the future, it sure would be nice to see the equity funds (C/S/I) follow the F fund’s leadership and run off their own streak of seven consecutive record high weeks. As such, we are recommending the following allocation change.