TSP Market Summary: Week of September 26, 2020
Key Takeaways
- Stock markets suffered fourth consecutive week of declines due to multiple uncertainties
- All TSP index funds (C/S/I/F) now trading below their 50-day moving averages
- Technical breakdown suggests continued caution warranted despite C/S fund outperformance
Recommended Allocation (Moderate Profile)
This is our historical recommendation from this date. For current recommendations, subscribe.
| G Fund | F Fund | C Fund | S Fund | I Fund |
|---|---|---|---|---|
| 50% | 0% | 25% | 25% | 0% |
This week was another tough one for the markets as both the Dow and S&P 500 extended their losses to four straight weeks. Like I mentioned two weeks ago, it just seems like that uncertainty keeps building with COVID, vaccines, stimulus bills, economic recovery and the upcoming election. The only real positive news was that a continuing resolution bill was passed thereby precluding a government shutdown at the beginning of October. When all was said and done, the S&P 500 closed at 3298 on Friday. From a technical perspective, the S&P 500 closed below its 50 day Moving Average (MA) every day this week and on Thursday dipped below that 3215 support level on an intraday basis. For TSP TIPS, all index funds (C/S/I/F) are now also below their 50 day MA’s. As such, we are recommending a further reduction to a neutral position split evenly between the C and S funds since they rank best in performance ranking.