TSP Market Summary: Week of November 28, 2020

By Roy Weisert, PhD, CFP

Key Takeaways

  • Multiple COVID vaccine breakthroughs and Yellen nomination fueled strong market rally across all sectors
  • All TSP equity funds (C/S/I) reached record highs, with S fund leading by hitting new highs daily
  • Technical trend remains strongly bullish heading into December trading period

For the third Monday morning in a row, we started the week with a new COVID-19 vaccine showing promise. We now have the bases loaded with Pfizer on third, Moderna on second, Astra Zeneca on first, with FDA approval at bat and vaccine distribution in the on-deck circle. On Monday afternoon we then had former Fed Chair Janet Yellen announced for nomination as Treasury Secretary, bringing a well-known name into play. With Tuesday, we saw the Dow cross that “good news” threshold of 30,000, hitting a new all-time high. We hope everyone enjoyed Thanksgiving Thursday, but on Friday the markets were once again bullish with both the S&P 500 and Russell 2000 Small Cap index coming home with fresh historic highs. From a technical perspective, it can be summed up with “Let the trend be your friend”. For TSP TIPS, all three equity funds (S/C/I) finished the week at records highs, but the S fund was the standout making a new high every day. With our current allocation of 100 percent in equity funds, we will “Let the trend be our friend” as we head into December.