It was a quiet, short week with Christmas falling on Wednesday, but the S&P 500 managed to record a new high close at 3240 Friday making this 5 straight weekly gains and 11 of the last 12. We are also currently in the throes of this year’s "Santa Claus Rally". Since 1950, the S&P 500 has rallied an average of 1.3% during the final five trading days of the year and the first two sessions of the new year. While 2019 is boasting some nice gains, it should be noted that the last 52 week low was on Christmas Eve 2018, essentially coincident with the New Year. Looking back to 26 January 2018, the S&P 500 set a new record high and closed at 2873. Fast forward 19 months to 28 August 2019, and the S&P finally broke out above that 2873 level, while remaining above that level and not looking back since. As mentioned last week, the markets have done a complete reversal between 2018 and 2019 and the Bulls seem to be in charge again. For TSP TIPS, the equity funds (C/S/I) are following suit with the C and S funds recording new highs on 3 of the 4 trading days, while the I fund lagged behind until Friday when it hit a new record as well. As such, we are not recommending an allocation change for this Santa Claus rally timeframe. Lastly, remember to update you 2020 TSP contributions and the TSP will be closed on Wednesday for the holiday. Happy New Year TSP subscribers!!
It was a quiet, short week with Christmas falling on Wednesday, but the S&P 500 managed to record a new high close at 3240 Friday making this 5 straight weekly gains and 11 of the last 12. We are also currently in the throes of this year’s "Santa Claus Rally". Since 1950, the S&P 500 has rallied an average of 1.3% during the final five trading days of the year and the first two sessions of the new year. While 2019 is boasting some nice gains, it should be noted that the last 52 week low was on Christmas Eve 2018, essentially coincident with the New Year. Looking back to 26 January 2018, the S&P 500 set a new record high and closed at 2873. Fast forward 19 months to 28 August 2019, and the S&P finally broke out above that 2873 level, while remaining above that level and not looking back since. As mentioned last week, the markets have done a complete reversal between 2018 and 2019 and the Bulls seem to be in charge again. For TSP TIPS, the equity funds (C/S/I) are following suit with the C and S funds recording new highs on 3 of the 4 trading days, while the I fund lagged behind until Friday when it hit a new record as well. As such, we are not recommending an allocation change for this Santa Claus rally timeframe. Lastly, remember to update you 2020 TSP contributions and the TSP will be closed on Wednesday for the holiday. Happy New Year TSP subscribers!!