S&P 500 achieved bullish breakout, closing at record high of 3066 on strong fundamentals
Both C fund (S&P 500) and I fund (international) reached record highs during the week
Four positive factors support continued bullish momentum through end of 2019
Last week we mentioned that we could have a “Bullish Breakout” if the S&P 500 closed above 3025. Well the S&P 500 came through and every day this past week the S&P 500 closed above that level and also finished Friday at a record high of 3066. So let\'s look at the four items which contributed to this bullishness. 1) The Federal Reserve cut interest rates by 25 basis points and stated that they have no intention of raising them again until the central bank sees a "really significant" rise in inflation. 2) GDP topped expectations by growing 1.9% in the third quarter due to consumer spending and government expenditures. 3) A “very strong” jobs report stated the U.S. economy added 128,000 jobs in October. 4) 70 percent of S&P 500 companies have reported their earnings, of which 75 percent have had better-than-expected earnings for the third quarter. For TSP TIPS, the I fund closed at a record high each day with the C fund also closing at a record high on Friday. As such, we’ll stay with our current allocation and hopefully this bullish run will continue on for the last two months of 2019.
Last week we mentioned that we could have a “Bullish Breakout” if the S&P 500 closed above 3025. Well the S&P 500 came through and every day this past week the S&P 500 closed above that level and also finished Friday at a record high of 3066. So let\'s look at the four items which contributed to this bullishness. 1) The Federal Reserve cut interest rates by 25 basis points and stated that they have no intention of raising them again until the central bank sees a "really significant" rise in inflation. 2) GDP topped expectations by growing 1.9% in the third quarter due to consumer spending and government expenditures. 3) A “very strong” jobs report stated the U.S. economy added 128,000 jobs in October. 4) 70 percent of S&P 500 companies have reported their earnings, of which 75 percent have had better-than-expected earnings for the third quarter. For TSP TIPS, the I fund closed at a record high each day with the C fund also closing at a record high on Friday. As such, we’ll stay with our current allocation and hopefully this bullish run will continue on for the last two months of 2019.