S&P 500 gained 5% this week, driven by record 2.5 million jobs added in May
All TSP equity funds (C/S/I) now trading above 200-day moving averages with strong momentum
Market approaching March record high of 3,386 - could reach within 1% with similar gains
The S&P 500 gained about 5 percent this week closing at 3193. The end of week bullishness was brought on by the largest gain of jobs (2.5 million) in one month. This sure was a bounce back from April’s job numbers where we had the largest drop. The same could be said for the markets. In March, we had the fastest 30% decline of the S&P 500 in history. Then we bounced back again recording the largest 50 day rally of the S&P 500 in history. It is interesting in that the market moves preceded the economic news by one month, otherwise known as pricing in the good and bad news in anticipation of them happening. What is also interesting is that the “challenge of reaching that record high of 3386 on the S&P 500” just got a little closer with this week’s gains. If we have the same weekly return this week as we had last, the S&P 500 will close at 3350, or about 1 percent shy of that historic high. For TSP TIPS, the equity funds (C/S/I) all have their price above their 200 day moving average. Our current allocation has both of those funds with "A" performance rankings, and both recording new highs since the March fallout. As such, we recommend no reallocation changes this week.
The S&P 500 gained about 5 percent this week closing at 3193. The end of week bullishness was brought on by the largest gain of jobs (2.5 million) in one month. This sure was a bounce back from April’s job numbers where we had the largest drop. The same could be said for the markets. In March, we had the fastest 30% decline of the S&P 500 in history. Then we bounced back again recording the largest 50 day rally of the S&P 500 in history. It is interesting in that the market moves preceded the economic news by one month, otherwise known as pricing in the good and bad news in anticipation of them happening. What is also interesting is that the “challenge of reaching that record high of 3386 on the S&P 500” just got a little closer with this week’s gains. If we have the same weekly return this week as we had last, the S&P 500 will close at 3350, or about 1 percent shy of that historic high. For TSP TIPS, the equity funds (C/S/I) all have their price above their 200 day moving average. Our current allocation has both of those funds with "A" performance rankings, and both recording new highs since the March fallout. As such, we recommend no reallocation changes this week.