TSP Market Summary: Week of January 04, 2020

By Roy Weisert, PhD, CFP

Key Takeaways

  • S&P 500 hit record highs Thursday before drone attack concerns triggered Friday decline
  • All equity TSP funds (C/S/I) show buy signals with prices above key moving averages
  • Performance spread equalizing across funds may prompt first reallocation decision

It was an action-packed, short week for the markets with the S&P 500 closing at 3234 on Friday. After some nice gains in 2019, we had 2020 roll in with the tech sector leading the S&P 500 to a record close on Thursday. Geopolitical drone attack risk then led to Friday’s sell off. Regarding trade, the next big event is the announced January 15 signing of the phase one trade deal with China. From an economic perspective, jobless claims came in at 220,000 vs an estimated 225,000 which was positive. For TSP TIPS, the equity funds (C/S/I) all remain strong with their prices above their 50 day Moving Average, which is above their 200 day MA. All three continue to give buy signals but based upon their performance ranking, we are starting to see a more balanced spread across the three. As such we’ll see if we get confirmation of this shift next week and if so, make our first reallocation of the month and year. Lastly, we also want to thank you for being TSP TIPS subscribers and will be emailing you our Year End letter and other pertinent items tomorrow.