US-China trade talks resuming in October boosted market confidence across all equity funds
Equity funds (C/S/I) overtook F fund performance as stocks crossed above 50-day moving averages
Fed Chair Powell cited trade uncertainty as pressuring business investment decisions
Even though we had a shortened Labor Day trade week, there sure was enough news over those four days. The biggest market mover was the announcement that U.S. and China trade talks would start again in October. Although Friday mornings job’s number was lower than expected, the unemployment rate remained steady. This was followed by Fed Chairman Powell’s trade war remarks and how this uncertainty is putting pressure on companies making long term capital expenditures. All told the S&P 500 finished up for the week at 2978. Complementing this from a technical perspective, most major market indices reestablished a bullish position as their “prices” crossed above their 50 day moving averages. For TSP TIPS, we saw a shift between bonds and equities. After the F fund made a new record high on Wednesday, the equity funds (C/S/I) performance rankings rose with Thursday’s bullish tide, overtaking the F fund’s performance ranking. As such, we are recommending the following reallocation.
Recommended Allocation (Moderate Profile)
This is our historical recommendation from this date.
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Even though we had a shortened Labor Day trade week, there sure was enough news over those four days. The biggest market mover was the announcement that U.S. and China trade talks would start again in October. Although Friday mornings job’s number was lower than expected, the unemployment rate remained steady. This was followed by Fed Chairman Powell’s trade war remarks and how this uncertainty is putting pressure on companies making long term capital expenditures. All told the S&P 500 finished up for the week at 2978. Complementing this from a technical perspective, most major market indices reestablished a bullish position as their “prices” crossed above their 50 day moving averages. For TSP TIPS, we saw a shift between bonds and equities. After the F fund made a new record high on Wednesday, the equity funds (C/S/I) performance rankings rose with Thursday’s bullish tide, overtaking the F fund’s performance ranking. As such, we are recommending the following reallocation.