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
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.
Recommended Allocation (Moderate Profile)
This is our historical recommendation from this date.
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G Fund
F Fund
C Fund
S Fund
I Fund
0%
0%
30%
45%
25%
TSP TIPS
Professional investment guidance for federal employees, military personnel and independent investors.
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.