The S&P 500 notched its second straight week of gains, gaining momentum in the last 30 minutes of trading on Friday to close at a new record high of 3380. Coronavirus is still topping the news, but the markets seem to have factored in the majority of its effects into pricing already. On the earnings front, the numbers continue to be strong. 77% of S&P 500 companies have reported and of these, 72% have better than expected earnings. Next week the markets are closed on Monday for President\'s Day and on Wednesday afternoon we’ll get the Fed minutes which could move the markets. For TSP TIPS, it was more of a “let the trend be your friend” kind of week. The F fund has hit new record highs in each of the last four weeks, the C fund has hit new record highs in each of the last two weeks, and now, after four weeks of consolidation, the S fund finally broke out and joined them with new record highs this week. Just to close the loop, the I fund is still shy of its last record close four weeks ago on 17 January. Based on this bullish trend, we are recommending the following reallocation.
The S&P 500 notched its second straight week of gains, gaining momentum in the last 30 minutes of trading on Friday to close at a new record high of 3380. Coronavirus is still topping the news, but the markets seem to have factored in the majority of its effects into pricing already. On the earnings front, the numbers continue to be strong. 77% of S&P 500 companies have reported and of these, 72% have better than expected earnings. Next week the markets are closed on Monday for President\'s Day and on Wednesday afternoon we’ll get the Fed minutes which could move the markets. For TSP TIPS, it was more of a “let the trend be your friend” kind of week. The F fund has hit new record highs in each of the last four weeks, the C fund has hit new record highs in each of the last two weeks, and now, after four weeks of consolidation, the S fund finally broke out and joined them with new record highs this week. Just to close the loop, the I fund is still shy of its last record close four weeks ago on 17 January. Based on this bullish trend, we are recommending the following reallocation.