It was a big week as the S&P 500 hit a new record close on Thursday, making it four positive weeks out of the the last five. Pfizer\'s COVID vaccine had its first dose administered on Monday, followed by the Federal Reserve pledging to support the economy. They also said that they are prepared to buy more bonds if the recovery slows down and will be keeping rates near zero. The stimulus bill was a top topic, and while it looked like a deal would happen (boosting markets to records), there is more work to be done over the weekend before the market can celebrate a stimulus agreement. The markets had an unusual Friday with Tesla\'s "historic" entry into the S&P 500. It’s estimated that passive S&P 500 index funds needed to buy more than $85 billion of Tesla, while selling $85 billion of the rest of the index to make room for it. Down for most of the day, frantic demand for Tesla resulted in the S&P 500 rising 22 points in the last 20 minutes of trading to close at 3710. After the close, we then had Moderna\'s COVID vaccine gaining FDA approval, leaving stopgap government shutdown and stimulus agreement on the table. For TSP TIPS, Thursday was a unique day in that even though the jobs numbers were worse than expected, all three equity funds (C/S/I) hit new record highs. The S fund again stood out in that in made new record highs three out of five days this week, including Friday. As such, there is no reallocation needed this week. Lastly, we wish all of our TSP TIPS subscribers a very Merry Christmas!!
It was a big week as the S&P 500 hit a new record close on Thursday, making it four positive weeks out of the the last five. Pfizer\'s COVID vaccine had its first dose administered on Monday, followed by the Federal Reserve pledging to support the economy. They also said that they are prepared to buy more bonds if the recovery slows down and will be keeping rates near zero. The stimulus bill was a top topic, and while it looked like a deal would happen (boosting markets to records), there is more work to be done over the weekend before the market can celebrate a stimulus agreement. The markets had an unusual Friday with Tesla\'s "historic" entry into the S&P 500. It’s estimated that passive S&P 500 index funds needed to buy more than $85 billion of Tesla, while selling $85 billion of the rest of the index to make room for it. Down for most of the day, frantic demand for Tesla resulted in the S&P 500 rising 22 points in the last 20 minutes of trading to close at 3710. After the close, we then had Moderna\'s COVID vaccine gaining FDA approval, leaving stopgap government shutdown and stimulus agreement on the table. For TSP TIPS, Thursday was a unique day in that even though the jobs numbers were worse than expected, all three equity funds (C/S/I) hit new record highs. The S fund again stood out in that in made new record highs three out of five days this week, including Friday. As such, there is no reallocation needed this week. Lastly, we wish all of our TSP TIPS subscribers a very Merry Christmas!!