TSP Market Summary: Week of November 14, 2020
Key Takeaways
- Pfizer's 90% effective COVID vaccine sparked rotation from pandemic to recovery sectors
- All TSP equity funds (C, S, I) reached record highs with S fund leading performance
- Broad breakout rally signals continued bullish momentum for equity allocations
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 |
|---|---|---|---|---|
| 0% | 0% | 30% | 45% | 25% |
It was a bookends kind of week with daily gains of over one percent on both Monday and Friday. The markets started the week with a boost after Monday\'s news of Pfizer\'s COVID-19 vaccine being more than 90% effective. This created a move from "pandemic" sectors to “economic recovery” small cap sectors. As such, on Friday the S&P 500 closed at a record high of 3585 and the Russell 2000 Small Cap Index also recorded its first high since August 2018. From a technical perspective, this “breakout rally” has been broad and what we’ve been looking for. For TSP TIPS, the equity funds (S/C/I) all closed the week at record highs also. Like last week, the performance ranking has the S fund at the top of the leaderboard with the C and I funds bunched close behind. As such, we’ll continue to buy into this bullishness and increase the equity allocation as follows.