What a week!! On Monday we saw market gains, but then the manufacturing data report came out and the Dow lost more than 800 points on Tuesday and Wednesday. Thursday then gave us a prime example of the “sometimes-inverse relationship” between economic news and market expectations. Following the release of disappointing data in the U.S. services sector, increased expectations of the Fed further lowering interest rates caused a bullish reversal. Fridays’ unemployment rate report came in at 3.5 percent, a 50 year low. As such, the market continued its advance and was particularly strong in the last hour. When all the volatility was over, the S&P 500 finished within nine points of last week, closing at 2952. As an encore, we then have U.S./China trade discussions starting next Thursday. For TSP TIPS, taking advantage of third exchange of the month provision was advantageous as the market was up on Monday, 30 September. Then the rest of the week was “Making money requires time, patience, and persistence”. That said, we’ll hold off on any reallocations this week with hopes of the S&P 500 crossing above the 3000 level again and solidifying the bullish trend.
What a week!! On Monday we saw market gains, but then the manufacturing data report came out and the Dow lost more than 800 points on Tuesday and Wednesday. Thursday then gave us a prime example of the “sometimes-inverse relationship” between economic news and market expectations. Following the release of disappointing data in the U.S. services sector, increased expectations of the Fed further lowering interest rates caused a bullish reversal. Fridays’ unemployment rate report came in at 3.5 percent, a 50 year low. As such, the market continued its advance and was particularly strong in the last hour. When all the volatility was over, the S&P 500 finished within nine points of last week, closing at 2952. As an encore, we then have U.S./China trade discussions starting next Thursday. For TSP TIPS, taking advantage of third exchange of the month provision was advantageous as the market was up on Monday, 30 September. Then the rest of the week was “Making money requires time, patience, and persistence”. That said, we’ll hold off on any reallocations this week with hopes of the S&P 500 crossing above the 3000 level again and solidifying the bullish trend.