The S&P 500 started the week by posting the best August since 1986 with gains of over seven percent. This was also the fifth month in a row of market gains. We then started September with S&P 500 record closes on Tuesday and Wednesday. Technology, which has been the driving force in this record-breaking market, then took a downward turn on Thursday. Before Friday’s opening bell, the employment report showed better than expected numbers with unemployment dropping to 8.4% in August, down from July\'s 10.2%. It was a volatile Friday with the S&P 500 dropping below that February pre-COVID high of 3386. But by the close, it did bounce back closing out the week at 3426, or about where we were two Monday’s ago. After five straight weeks of market gains, we saw a lot of profit taking going into this long weekend. Hopefully next week we’ll see that money return to the markets, which could then set the stage for a bullish rebound. For TSP TIPS, the equity funds mimicked the market with the C and S funds hitting record highs on Wednesday before pulling back the rest of the week. From a technical perspective, these funds still look positive and therefore we are recommending remaining with our current allocation. Lastly, the markets are closed Monday for Labor Day and we hope all of our subscribers enjoy the long weekend!!
The S&P 500 started the week by posting the best August since 1986 with gains of over seven percent. This was also the fifth month in a row of market gains. We then started September with S&P 500 record closes on Tuesday and Wednesday. Technology, which has been the driving force in this record-breaking market, then took a downward turn on Thursday. Before Friday’s opening bell, the employment report showed better than expected numbers with unemployment dropping to 8.4% in August, down from July\'s 10.2%. It was a volatile Friday with the S&P 500 dropping below that February pre-COVID high of 3386. But by the close, it did bounce back closing out the week at 3426, or about where we were two Monday’s ago. After five straight weeks of market gains, we saw a lot of profit taking going into this long weekend. Hopefully next week we’ll see that money return to the markets, which could then set the stage for a bullish rebound. For TSP TIPS, the equity funds mimicked the market with the C and S funds hitting record highs on Wednesday before pulling back the rest of the week. From a technical perspective, these funds still look positive and therefore we are recommending remaining with our current allocation. Lastly, the markets are closed Monday for Labor Day and we hope all of our subscribers enjoy the long weekend!!