TSP Market Summary: Week of July 06, 2019
Key Takeaways
- US-China trade truce boosted markets to record highs, with S&P 500 nearing 3,000 milestone
- C, S, and I funds hit records and showed improving performance versus F fund's 9-week streak
- Strong jobs report raised interest rate concerns, causing market volatility despite recovery
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% | 25% | 30% | 25% | 20% |
It was a shortened holiday week, but good things do come in small packages. Major market indices were hitting record highs with the S&P 500 closing the week at 2990, just below that 3K mark. The week started with a market boost after the U.S. and China agreed to a trade truce, while it ended with Friday’s monthly employment report. A strong report raised concerns over the direction of interest rates, which led to a market selloff at the open, but indices bounced back up throughout the afternoon. For TSP TIPS, the Bond, Common Stock and International funds all hit record highs on Wednesday with the Small Cap fund just shy of joining the crowd. Although the F fund extended its record high streak to nine weeks, we are seeing improving performance rankings of the three equity funds (C/S/I) funds and as such, are recommending the following reallocation as our first of the month.