Rebounding from China’s coronavirus threat, the markets and the S&P 500 rallied Monday and continued upward through Thursday’s close when it set a new record high. China, again in the news, influenced Thursday’s markets when they announced a 50% tariff reduction on $75 billion worth of U.S. imports. On Friday the markets took a much-needed breather with the S&P 500 closing the week at 3327. Closer to home, earnings season continues to be strong and with more than 300 of the S&P 500 companies reporting, 71.3% have beaten analyst expectations. For next week we have another sixty S&P 500 companies reporting earnings and there is that lingering concern regarding the resultant negative coronavirus effect on China’s economy and its global impact. For TSP TIPS, the C fund mirrored the S&P 500 and also hit a new high on Thursday. However, let’s not forget that F bond fund which also recorded a new high this week. As such, we are recommending no allocation changes.
Rebounding from China’s coronavirus threat, the markets and the S&P 500 rallied Monday and continued upward through Thursday’s close when it set a new record high. China, again in the news, influenced Thursday’s markets when they announced a 50% tariff reduction on $75 billion worth of U.S. imports. On Friday the markets took a much-needed breather with the S&P 500 closing the week at 3327. Closer to home, earnings season continues to be strong and with more than 300 of the S&P 500 companies reporting, 71.3% have beaten analyst expectations. For next week we have another sixty S&P 500 companies reporting earnings and there is that lingering concern regarding the resultant negative coronavirus effect on China’s economy and its global impact. For TSP TIPS, the C fund mirrored the S&P 500 and also hit a new high on Thursday. However, let’s not forget that F bond fund which also recorded a new high this week. As such, we are recommending no allocation changes.